SHIRISH ARVIND JOSHI ,MUMBAI V. ITO, WARD, 2(2), KALYAN

ITA 6884/MUM/2024

AI Insights

The case involves Shirish Arvind Joshi, the appellant, who appealed against the order of the National Faceless Appeal Centre (NFAC), which confirmed a penalty of Rs. 1,50,000 under section 271B of the Income-tax Act, 1961 for the Assessment Year 2015-16. The appellant contested the order on grounds of violation of natural justice and argued that his trading in futures and options should be considered a business, which did not exceed the audit limit. However, before the tribunal could deliberate on these issues, the appellant indicated his intention to settle the matter under the Vivad Se Vishwas Scheme, leading to the withdrawal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473323 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KAVITHA KAUSHIK
• Keywords: Principle of natural justice
• Section: 250; 6; 271B

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SMT BEENA PILLAI JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 6884/MUM/2024 (निर्धारण वर्ा / Assessment Year :2015-16) Shirish Arvind Joshi A 402, Kailash Uptown plot 106A Sector 6 Karanjade Panvel 410206 v/s. बिधम Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (NFAC), ITO Ward 2(2) Kalyan स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: ABJPJ4852H Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee by: None रधजस्व की ओर से /Revenue by: Ms. Kavitha Kaushik (SR DR) सुिवधई की िधरीख / Date of Hearing 02.04.2025 घोर्णध की िधरीख/Date of Pronouncement 03.04.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed against the order of National Faceless Appeal Centre, (NFAC), Delhi [hereinafter referred to as “CIT(A)”] order dated 23/03/2022 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2015-16. The assessee has taken the following grounds of appeal: “Appellant is aggrieved with the impugned order dated 08/11/2024 issued u/s. 250 of the Act, 1961 for AY 2015-16 issued by NATIONAL FACELESS APPEAL CENTRE (NFAC). P a g e | 2 ITA No. 6884/Mum/2024 A.Y. 2015-16. Shirish Arvind Joshi 1. That, the impugned order dated 08/11/2024 issued u/s. 250 is passed against the basic principle of natural justice. 2. That, the assessee had in incurred a loss in the said financial year from trading in future and options. In this all statements as regards to this, had been already given in assessment. Our contention is that we have done trading in future & option shares. Hence, we request you to consider this as a Business of Trading volume comprises of both future & option. In this turnover is calculated on the basis of profit & loss summation. In this we request you to kindly treat the difference (Profit Loss) which is below 1 Cr Limit of Audit, which is the method of Calculating turnover in future & option. As a result of this, there is no need to conduct Audit. Hence, we request you to delete Penalty Proceedings initiated against under section 271B of ITR Act 1961. An Appellant reserve right to add points in the course of an Appeal 3. That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the Grounds stated here-in-above, either before or at the time of hearing of this appeal” 2. This appeal is filed against the order of Ld. CIT(A) confirming the penalty of Rs.1,50,000/- which has levied u/s. 271B of the Act by the Ld.AO vide his order dated, 23/03/2022. 3. At the outset it has been submitted by the Ld.AR that, the assessee has filed an application under the Vivad Se Vishwas Scheme (VSVS), with intention to settle the dispute. In view of this fact the appeal is dismissed as withdrawn. However, the assessee would be at liberty to revive the appeal in case his application under VSV Scheme does not become final. 4. Accordingly, the appeal is dismissed as withdrawn. Order pronounced in the open court on 03.04.2025. Sd/- Sd/- BEENA PILLAI RENU JAUHRI (न्यधनयक सदस्य/JUDICIAL MEMBER) (लेखधकधर सदस्य/ACCOUNTANT MEMBER) P a g e | 3 ITA No. 6884/Mum/2024 A.Y. 2015-16. Shirish Arvind Joshi Place: म ुंबई/Mumbai दिन ुंक /Date 03.04.2025 दिव्य रमेश न ुंिग वकर/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "