Income Tax Appellate Tribunal - Mumbai
M.P. Beer Products Ltd, Mumbai vs Dcit Cir 3(2), Mumbai on 30 November, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH "B", MUMBAI
BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER
AND
SHRI PAWAN SINGH, JUDICIAL MEMBER
ITA No. 5943/Mum/2014
(Assessment Year 2004-05)
M.P.Beer Products Ltd.
601, Maker Chamber-V,
Nariman Point, Mumbai -21
PAN: AABCM0354P ...... Appellant
Vs.
The DCIT,Cir.3(2),
Mumbai 400 0051 .... Respondent
Appellant by : None
Respondent by : Shri Suman Kumar
Date of hearing : 09/11/2017
Date of pronouncement : 30/11/2017
ORDER
PER G.S.PANNU,A.M:
The captioned appeal filed by the assessee pertaining to assessment year 2004-05 is directed against an order passed by the CIT(A) -4, Mumbai dated 04/08/2014, which in turn arises out of an order passed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961 (in short 'the Act') dated 13/05/2009.
2. In this appeal, the grievance of the assessee is against the order of the CIT(A) sustaining the levy of penalty under section 271(1)(c) of 2 ITA No. 5943/Mum/2014 (Assessment Year 2004-05 the Act to the extent of Rs.43,87,214/- as against Rs.65,80,000/- levied by the Assessing Officer.
3. It was noted at the time of hearing that this appeal was fixed for hearing for more than one occasion and inspite of issuance of notice of hearing by RPAD, neither the assessee nor any of his representative has appeared. Under these circumstances, following Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963, the appeal of the assessee is being disposed off ex-parte after hearing the respondent-Revenue on merits.
4. In the instant case, the relevant facts are that consequent to a survey action in the case of Bharatiya Jeevan Dhara Education & Charitable Trust, New Delhi, the assessment was reopened and in the ensuing assessment finalized under section 143(3) r.w.s. 147 of the Act dated 28/12/2007, the Assessing Officer made an addition of Rs.1,22,00,000/-, which represented the amount of deduction claimed under section 35AC of the Act. The disallowance was made on the ground that the survey action in the case Bharatiya Jeevan Dhara Education & Charitable Trust, New Delhi revealed that the donation given by the assessee was returned back in cash and, therefore, the assessee's claim for deduction under section 35AC with regard to the donation made to the Bharatiya Jeevan Dhara Education & Charitable Trust, New Delhi was held to be bogus. Consequently, the Assessing Officer passed an order under section 271(1)(c) of the Act , whereby he held the assessee guilty of concealment of income as well as furnishing of inaccurate particulars of income, qua the aforesaid disallowance. The Assessing Officer levied a penalty of Rs.65,80,800/-, which was 3 ITA No. 5943/Mum/2014 (Assessment Year 2004-05 equivalent to the 150% of the tax sought to be evaded on the aforesaid income. Being aggrieved, the assessee carried the matter in appeal before the CIT(A) who has also sustained the action of the Assessing Officer; so however, he scaled down the level of penalty by reducing it to the minimum prescribed i.e. 100% of the tax sought to be evaded. In this way, the penalty has been reduced to Rs.43,87,214/- as against Rs.65,80,800/- levied by the Assessing Officer. Not being satisfied with the order of CIT(A), assessee is in further appeal before us.
5. At the time of hearing, the Ld. Departmental Representative has taken us through the orders of the authorities below and sought to demonstrate that the lower authorities have made no mistake in levying penalty under section 271(1)(c) of the Act in the facts and circumstances of the case. The Ld. Departmental Representative pointed out that the furnishing of inaccurate particulars of income, qua the claim of deduction under section 35AC of the Act stood corroborated on account of the survey action in the case of donee-trust and, therefore, the levy of penalty was quite justified.
6. Having heard the Ld. Departmental Representative and perusing the orders of the authorities below, we find that a justifiable case for levy of penalty under section 271(1)(c) of the Act has been made out by the income-tax authorities. The relevant discussion in the orders of the authorities below reveal that the entire addition is based on the information unearthed in the course of survey in the case of donee institution namely, Bharatiya Jeevan Dhara Education & Charitable Trust, New Delhi. Before us, there is no material which would enable us to distract from the conclusions drawn by the lower authorities, 4 ITA No. 5943/Mum/2014 (Assessment Year 2004-05 which are based on the relevant material. Therefore, in view of the aforesaid, we hereby affirm the decision of the CIT(A) and accordingly, the assessee fails in this appeal.
7. In the result, appeal of the assessee is dismissed, as above.
Order pronounced in the open court on 30/11/2017.
Sd/- Sd/-
(PAWAN SINGH) (G.S. PANNU)
JUDICIAL MEMBER ACCOCUNTANT MEMBER
Mumbai, Dated 30/11/2017
Vm, Sr. PS
Copy of the Order forwarded to :
1. The Appellant ,
2. The Respondent.
3. The CIT(A)-
4. CIT
5. DR, ITAT, Mumbai
6. Guard file.
BY ORDER,
//True Copy//
(Dy./Asstt. Registrar)
ITAT, Mumbai