Income Tax Appellate Tribunal - Mumbai
Reliable Metal Industries, Mumbai vs Acit -25(3), Mumbai on 22 March, 2019
1 ITA No.758/Mum/2018 M/s. Reliable Metal Industries Assessment Year :2010-11 आयकर अपीलीय अिधकरण "डी" ायपीठ मुंबई म । IN THE INCOME TAX APPELLATE TRIBUNAL "D" BENCH, MUMBAI माननीय ी महावीर िसं ह, ाियक सद एवं माननीय ी मनोज कुमार अ वाल ,ले खा सद के सम । BEFORE HON'BLE SHRI MAHAVIR SINGH, JM AND HON'BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ I.T.A. No.758/Mum/2018 ( िनधा रण वष / Assessment Year:2010-11 Reliable Metal Industries Acit-25(3) 21, Chandra Milan, MG Road बनाम/ बनाम C-10, Pratyakshkar Bhavan Vile Parle(E) Vs. Bandra Kurla Complex Mumbai-400 057. Mumbai.
ःथायीले खासं . /जीआइआरसं . /PAN/GIR No. AACFR-6082-K (अपीलाथ /Appellant) : (ू यथ / Respondent) Appellant by : Mehul Shah - Ld.AR Respondent by : Abhi Ram Kartikeyan - Ld.DR सुनवाई क तार"ख/ : 18/03/2019 Date of Hearing घोषणा क तार"ख / : 22/03/2019 Date of Pronouncement आदे श / O R D E R Per Manoj Kumar Aggarwal (Accountant Member)
1. Aforesaid appeal by assessee for Assessment Year [in short referred to as 'AY'] 2010-11 contest the order of Ld. Commissioner of Income-Tax (Appeals)-37, Mumbai, [in short referred to as 'CIT(A)'], Appeal No. CIT(A)-37/IT-679/ACIT -25(3)/15-16 dated 18/11/2017 qua confirmation of certain penalty u/s 271(1)(c).
2. Upon perusal of quantum assessment order u/s 143(3) dated 23/12/2015, it transpires that the assessee has been saddled with 2 ITA No.758/Mum/2018 M/s. Reliable Metal Industries Assessment Year :2010-11 estimated addition of Rs.3.31 Lacs, being 25% of alleged bogus purchases. Against the same, penalty proceedings were initiated u/s 271(1)(c) in the quantum assessment order and the assessee has been saddled with penalty of Rs.1.02 Lacs by Ld. AO vide order dated 15/06/2016.
3. Subsequently, upon further appeal against quantum additions, the estimated additions were reduced to 12.5% by Ld. first appellate authority vide order dated 18/11/2017. Therefore, keeping in view the same, the Ld. first appellate authority, while adjudicating appeal against penalty, directed Ld. AO to reduce the penalty accordingly. Still aggrieved, the assessee is in further appeal before us.
4. After hearing rival submissions and perusal of relevant material on record, the undisputed position that emerges is the fact that the penalty has been levied / confirmed merely against estimated disallowances of 12.5%. Nevertheless, the assessee's claim has been accepted substantially which do not suggest that there was furnishing of inaccurate particulars of income or concealment of income within the meaning of Section 271(1)(C). Therefore, the factual matrix does not inspire to concur with the stand of first appellate authority. Hence, we delete the impugned penalty.
5. The appeal stands allowed.
Order pronounced in the open court on 22nd March, 2019.
Sd/- Sd/-
(Mahavir Singh) (Manoj Kumar Aggarwal)
ाियक सद / Judicial Member लेखा सद / Accountant Member मुंबई Mumbai; िदनां क Dated : 22/03/2019 Sr.PS, Jaisy Varghese 3 ITA No.758/Mum/2018 M/s. Reliable Metal Industries Assessment Year :2010-11 आदे शकी ितिलिपअ"ेिषत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. !"थ / The Respondent
3. आयकरआयु$(अपील) / The CIT(A)
4. आयकरआयु$/ CIT- concerned
5. िवभागीय!ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai
6. गाड+ फाईल / Guard File आदे शानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, मुंबई / ITAT, Mumbai.