MR. SHEKHAR DADARKAR PROP. M/S S.D. CONSTRUCTION ,MUMBAI V. NFAC, DELHI

ITA 3414/MUM/2024

AI Insights

The case involves Mr. Shekhar Dadarkar, the proprietor of M/s. S.D. Construction, who appealed against the penalty levied under section 271(1)(c) of the Income Tax Act, amounting to Rs. 3,70,448. The penalty was related to the denial of exemption under section 54 of the Act. The original assessment for the assessment year 2012-13 was contested, leading to various appeals and re-assessments. The CIT(A) confirmed the penalty after the Tribunal set aside certain issues but upheld the additions made in the assessment. The Tribunal dismissed the appeal, agreeing with the CIT(A)'s decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469880 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: BHANGEPATIL PUSHKARAJ RAMESH DR
• Assessee Lawyers: ASHISH THAKUDESAI
• Keywords: Set aside; TDS
• Section: 143(3); 54; 271(1)(c)

Judgement Text

"| आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 3414/Mum/2024 Assessment Year: 2012-13 Mr. Shekhar Dadarkar Prop. M/s. S.D. Construction Office No. 1 Poorti Vihar Co-op Hsg. Soc. Ltd. Opp. Guru Nanak Park Near Siddharth Hospital New Shastri Nagar Goregaon (W) Mumbai - 400104 [PAN: ADAPD8694G] Vs National Faceless Assessment Centre अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Ashish Thakudesai, C.A. Revenue by : Shri Bhangepatil Pushkaraj Ramesh – Sr. D/R सुनवाई की तारीख/Date of Hearing : 30/01/2025 घोषणा की तारीख /Date of Pronouncement: 30/01/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 30/04/2024 by NFAC, Delhi, [hereinafter ‘the ld. CIT(A)’] pertaining to AY 2012-13. 1.1. Delay is condoned. 2. The solitary grievance of the assessee is that the ld. CIT(A) erred in confirming the levy penalty u/s 271(1)(c) of the Act amounting to Rs. 3,70,448/-. I.T.A. No. 3414/Mum/2024 2 3. Briefly stated the facts of the case are that the assessee filed his return of income on 28/09/2012, declaring total income at Rs.28,05,809/-. The return was assessed u/s 143(3) of the Act vide order dated 27/03/2015 and income determined that Rs.1,93,01,317/- after making the following additions:- 4. The assessee preferred appeal before the ld. CIT(A) disputing the additions under clause i, ii & iii above and the ld. CIT(A) vide order dt. 14/10/2016, confirmed the additions and the denial of exemption u/s 54 of the Act was not pursued. The assessee preferred appeal before the Tribunal and the Tribunal vide order dated 09/04/2018, set aside the issue relating to non-deduction of TDS on interest paid to NBFC and on caretaking charges and dismissed the ground relating to deemed rent. Percent to the order of the Tribunal assessment was reframed by repeating the same additions made in the earlier year. The ld. CIT(A) confirmed the addition on account of non-deduction of TDS on interest paid to NBFC and caretaking charges. 5. The AO initiated penalty proceedings but dropped penalty on non- deduction of TDS on interest paid to NBFC and caretaking charges and I.T.A. No. 3414/Mum/2024 3 also on deemed rent but levied penalty on the denial of exemption u/s 54 of the Act. 6. On the above facts, the ld. CIT(A) held as under:- “Under the available facts, as the original assessment order dated 27.03.2015 has been replaced by the set aside assessment order passed u/s 143(3) ws 254, the penalty orders passed u/s 271(1)(c) in consequence to the original assessment order have become infructuous. Hence the penalty order dated 12.02.2022 has become infructuous. Accordingly, the appeal against the penalty order dated 12.02.2022 has also been rendered infructuous. Accordingly, the appeal is dismissed for statistical purpose.” 7. Considering the facts of the case in totality, we find no reason to interfere with the findings of the ld. CIT(A). 8. In the result, appeal of the assessee is dismissed. Order pronounced in the Court on 30th January, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 30/01/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "