PRINCIPAL CIT -1, THANE V. M/S SUMANGALA MACHINERIES, KALYAN

MA 103/MUM/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 5648 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-12-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 07-04-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “SMC" BENCH, MUMBAI BEFORE SHRI VIKAS AWASTHY, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER MA.Nos. 103 & 104/MUM/2021 [ARISING OUT OF ITA.Nos. 1300 & 1301/MUM/2019 (A.Y. 2009-10 & 2010-11)] Pr.CIT – 1 6 th Floor, Ashar I.T. Park “A” Wing, Road No. 16Z Wagle Industrial Estate Thane, Mumbai - 400604 v. M/s Sumangala Machineries Gala No. C-3, Shree Compound Plot No. 1280, Chotani Compound Narpoli, Bhiwandi, Thane-421302 PAN: AARFS9163K (Appellant) (Respondent) Assessee by : None Department by : Shri T. Shanakar Date of Hearing : 17.12.2021 Date of Pronouncement : 23.12.2021 O R D E R PER S. RIFAUR RAHMAN (AM) 1. Through these Miscellaneous Applications revenue requested to amend the ITAT order in ITA.No. 1300 & 1301/Mum/2019 (A.Y. 2009-10 & 2010-11) dated 27.07.2020 as certain mistakes apparent on record. MA.Nos. 103 & 104/MUM/2021 M/s Sumangala Machineries 2 2. At the time of hearing Ld. DR submitted that assessee filed appeal before the Ld.CIT(A) and Ld.CIT(A) dismissed the appeal of the assessee. Aggrieved assessee preferred an appeal before the ITAT, SMC Bench, Mumbai and ITAT has directed that disallowance be restricted in this case to 12.5% of the bogus purchases. 3. Aggrieved with the penalty order, assessee preferred appeal before Ld.CIT(A)–2, Thane and while passing the order dated 03.12.2018 Ld.CIT(A) directed the Assessing Officer to recalculate the amount of penalty after giving effect to the order of the ITAT Mumbai. Aggrieved with the order of the Ld.CIT(A), department preferred appeal before ITAT and while disposing of the order ITAT vide order dated 27.07.2020 deleted the penalty with the following observation: - “12. ............. Thus, in our view, the penalty levied by AO has rightly been deleted by Ld. CIT(A). Accordingly, the grounds raised by the revenue stands dismissed.” 4. Ld. DR submitted that the penalty is not deleted by the Ld.CIT(A) rather Ld.CIT(A) directed the Assessing Officer to recalculate the amount of penalties after giving effect to the order of the ITAT and he prayed that proper modification be made to the order. MA.Nos. 103 & 104/MUM/2021 M/s Sumangala Machineries 3 5. On the other hand, Ld. AR accorded with the submissions of the Ld.DR. 6. Considered the rival submissions and material placed on record, we noticed that the observation made in Paragraph No.12 of the order needs rectification. Accordingly, we modify the Para No. 12 as under: - “12. .................. Thus, in our view the revised penalty levied by Assessing Officer after giving effect to the order passed by ITAT in quantum appeal is just and proper. Therefore, we do not see any reason to interfere with the order passed by Ld.CIT(A). Accordingly ground raised by the revenue stands dismissed.” 7. In the result, both the Miscellaneous Applications filed by the revenue are allowed and accordingly modified. Order pronounced on 23.12.2021 as per Rule 34(4) of ITAT Rules by placing the pronouncement list in the notice board Sd/- Sd/- (VIKAS AWASTHY) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai / Dated 23/12/2021 Giridhar, Sr.PS MA.Nos. 103 & 104/MUM/2021 M/s Sumangala Machineries 4 Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. The CIT(A), Mumbai. 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar) ITAT, Mum