Income Tax Appellate Tribunal - Mumbai
Assistant Commissioner On Income ... vs Neelkamal Realtors & Erectors India Pvt ... on 3 May, 2021
1 आयकर अपीलीय अधिकरण "बी" न्यायपीठ मुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, MUMBAI माननीय श्री महावीर स िंह, उपाध्यक्ष एवुं माननीय श्री मनोज कुमार अग्रवाल ,लेखा दस्य के मक्ष। BEFORE HON'BLE SHRI MAHAVIR SINGH, VP AND HON'BLE SHRI MANOJ KUMAR AGGARWAL, AM (Hearing Through Video Conferencing Mode) आयकरअपील िं ./ I.T.A. No. 5414/Mum/2019 (धििाारण वर्ा / Assessment Year: 2010-11) ACIT-5(2)(1) M/s Neelkamal Realtors & Erectors P. Ltd.
R.No.525 265-E,Belasis Road
बिाम/
Aaykar Bhawan Mumbai Central
M.K.Road Vs. Mumbai - 400 008
Mumbai - 400 020
स्थायीलेखा िं ./ जीआइआर िं ./ PAN/GIR No. AABCN-9254-D (अपीलाथी/Appellant) : (प्रत्यथी / Respondent) Assessee by : None Revenue by : Shri Tharian Oommen-Ld. DR ुनवाई की तारीख/ : 22/04/2021 Date of Hearing घोषणा की तारीख / : 03/05/2021 Date of Pronouncement आदे श / O R D E R Manoj Kumar Aggarwal (Accountant Member)
1. Aforesaid appeal by revenue for Assessment Year [AY] 2010-11 contest the order of Ld. Commissioner of Income-Tax (Appeals)-10, Mumbai [CIT(A)] dated 31/05/2019 which has deleted the penalty of Rs.80,146/- u/s 271(1)(c) as levied by Ld. AO vide penalty order dated 28/12/2017. Though none appeared for assessee, however, the material on record was sufficient enough for disposal of the appeal.
22. The assessee was assessed u/s 143(3) on 26/02/2013 wherein it was saddled with additions of Rs.54.76 Lacs on account of unproved purchases. The quantum addition was ultimately been confirmed on estimated basis to the extent of Rs.2.36 Lacs by Tribunal. Consequently, impugned penalty of Rs.80,146/- was levied by Ld. AO against the assessee vide order dated 28/12/2017. Upon further appeal challenging levy of penalty, Ld. CIT(A) deleted the same, inter-alia, by observing that except for rejection of assessee's explanation, there was no material to sustain the plea of concealment. Further, the quantum additions were significantly reduced by the Tribunal. Aggrieved, the revenue is in further appeal before us.
3. In our considered opinion, the impugned order would not require any interference on our part for two reasons. Firstly, the additions were merely estimated additions for unproved purchases and therefore, no case of concealment of income or furnishing of inaccurate particulars of income could be made out against the assessee. Secondly, the revenue's appeal is not maintainable in terms of latest low tax effect CBDT Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc. 142/2007- TTJ(Pt.) which prescribes minimum threshold limit of Rs.50 Lacs for revenue to agitate the matter further before Tribunal. It is settled legal position that quantum proceedings and penalty proceedings are independent and distinct proceedings and confirmation of additions may not be the sole ground for confirming the penalty. Extending the same logic, unless specific exception is provided in the circular with respect to penalty also, it could not be construed that the penalty was to be treated at par with quantum additions. The clause 10(e) specifically applies only to additions which are based on information received from external 3 sources. The levy of penalty, by no stretch of imagination, could be construed as addition as envisaged by clause 10(e). Therefore, the submissions made by Ld. DR could not be honored and we decline to accept the same.
4. Resultantly, the appeal stand dismissed.
Order pronounced on 3rd May, 2021.
Sd/- Sd/-
(Mahavir Singh) (Manoj Kumar Aggarwal)
उपाध्यक्ष / Vice President लेखा दस्य / Accountant Member
मुिंबई Mumbai; सदनािं क Dated : 03/05/2021 Sr.PS, Jaisy Varghese आदे शकीप्रधिधलधपअग्रेधर्ि/Copy of the Order forwarded to :
1. अपीलाथी/ The Appellant
2. प्रत्यथी/ The Respondent
3. आयकरआयुक्त(अपील) / The CIT(A)
4. आयकरआयुक्त/ CIT- concerned
5. सवभागीयप्रसतसनसध, आयकरअपीलीयअसधकरण, मुिंबई/ DR, ITAT, Mumbai
6. गार्ड फाईल / Guard File आदे शािसार/ BY ORDER, उप/सहायक पुंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअधिकरण, मुिंबई / ITAT, Mumbai.