RASEX TRADERS PRIVATE LIMITED, MUMBAI v. ACIT 5(3)(1), MUMBAI

ITA 1174/MUM/2019 | 2014-2015
Pronouncement Date: 08-03-2021 | Result: Allowed

Appeal Details

RSA Number 117419914 RSA 2019
Assessee PAN AACCR9605B
Bench Mumbai
Appeal Number ITA 1174/MUM/2019
Duration Of Justice 2 year(s) 7 day(s)
Appellant RASEX TRADERS PRIVATE LIMITED, MUMBAI
Respondent ACIT 5(3)(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 08-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 08-03-2021
Last Hearing Date 31-03-2020
First Hearing Date 18-02-2021
Assessment Year 2014-2015
Appeal Filed On 01-03-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (V I RTUAL COURT) D BENCH MUMBAI BEFORE : SHRI M.BALAGANESH AM & SHRI PAVAN KUMAR GADALE JM ITA NO. 1174 /MUM/ 20 19 ( ASSESSMENT YEAR : 201 4 - 1 5 ) M/S. RASEX TRADERS PRIVATE LIMITED 139C NOMAN MAN SION KEMPS CORNER NEAR SHALIMAR HOTEL MUMBAI 400 036 VS. THE ACIT - 5(3)(1) MUMBAI PAN/GIR NO. AACCR9605B (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY NONE REVENUE BY SHRI BHARAT ANDHLE DATE OF HEARING 18 / 02 /202 1 DATE OF PRONOUNCEMENT 08 / 03 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 1174/MUM/2019 FOR A.Y. 2014 - 15 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 10 MUMBAI IN APPEAL NO. CIT(A) - 10 MUMBAI/10021/2017 - 18 DATED 21/12 /2018 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS ACT) . ITA NO . 1174/MUM/2019 M/S. RASEX TRADERS PVT. LTD. 2 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN CONFIRMING THE L EVY OF PENALTY U/S.271(1)(C) OF THE ACT IN THE SUM OF RS.68 289/ - IN THE FACTS AND CIRCUMSTANCES OF THE INSTANT CASE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS AS COMMISSION AGENT OF AGRICULTURAL PRODUCTS AND HAD FILED ITS RETUR N OF INCOME FOR THE A .Y.2014 - 15 ON 30/11/2014 DECLARING TOTAL INCOME OF RS.91 45 440/ - . THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT DETERMINING TOTAL INCOME OF RS.92 55 440/ - MAKING DISALLOWANCE OF DONATION OF RS.1 11 000/ - AFTER GRANTING DEDUCTION U/S 80G OF THE ACT IN THE ASSESSMENT. WE FIND THAT ASSESSEE HAD GIVEN DONATION TO GENUINE TRUSTS AND PRIME MINISTERS NATIONAL RELIEF FUND ETC. AND HAD BY OVERSIGHT NOT DISALLOWED THE SAME IN THE COMPUTATION OF INCOME WHILE FILING THE RETURN. IT IS A FACT THAT ASSESSEE ALSO DID NOT CLAIM DEDUCTION UNDER 80G OF THE ACT IN THE RETURN. BUT THE FACT OF INCURRENCE OF EXPENDITURE TOWARDS DONATION HAS BEEN E XPLICITLY DISCLOSED IN THE PROFIT AND LOSS ACCOUNT OF THE ASSESSEE. THIS DONATION OF RS.2 21 000/ - WAS DISALLOWED BY THE LD. AO IN THE ASSESSMENT AND DEDUCTION U/S.80G WAS GRANT ED TO THE TUNE OF RS.1 10 000/ - AND DISALLOWANCE TO THE TUNE OF RS.1 11 000/ - W AS MADE IN THE ASSESSMENT. FOR THIS DISALLOWANCE THE LD. AO LEVIED PENALTY U/S.271(1)(C) OF THE ACT FOR FURNISHING INACCURATE PARTICULARS OF INCOME. WE FIND THAT THE FACT OF INCURRENCE OF DONATION HAD BEEN DULY DISCLOSED SEPARATELY IN THE PROFIT AND LOSS ACCOUNT OF THE ASSESSEE WHICH ALONE ENABLED THE LD. AO TO MAKE DISALLOWANCE IN THE ASSESSMENT. IT IS NOT IN DISPUTE THAT THE PROFIT AND LOSS ACCOUNT WAS FILED ALONG WITH THE RETURN OF INCOME. HENCE THERE WAS NO OTHER EXTERNAL INFORMATION WHICH THE LD. AO HAD RECEIVED ENABLING HIM TO ITA NO . 1174/MUM/2019 M/S. RASEX TRADERS PVT. LTD. 3 MAKE THIS DISALLOWANCE. HENCE IT TANTAMOUNT S ONLY TO LEGITIMATE ERROR COMMITTED BY THE ASSESSEE WHICH WHEN POINTED OUT WAS RIGHTLY WITHDRAWN BY THE ASSESSEE IN THE COURSE OF ASSESSMENT PROCEEDINGS. THE GENUINENESS OF INCURR ENCE OF SUCH EXPENDITURE IS NOT DOUBTED BY THE REVENUE. IT IS NOT IN DISPUTE THAT THE ASSESSEE HAD ALSO DULY PRODUCED DONATION RECEIPTS BEFORE THE LD. AO . H ENCE WE FIND THAT ASSESSEES CASE SQUARELY FALLS WITHIN THE RATIO DECIDENDI LAID DOWN BY THE HONBL E APEX COURT IN THE CASE OF PRICE WATER HOUSE COOPERS VS. CIT REPORTED IN 348 ITR 306 AND RELIANCE PETRO CHEMICALS LTD. REPORTED IN 322 ITR 158. RESPECTIVELY FOLLOWING THE SAID DECISION WE HAVE NO HESITATION IN DIRECTING THE LD. AO TO DELETE THE PENALTY LEVIED IN THE SUM OF RS.68 289/ - IN THE FACTS AND CIRCUMSTANCES OF THE INSTANT CASE. ACCORDINGLY THE GROUND RAISED BY THE ASSESSEE IS ALLOWED. 4. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 08 / 03 /202 1 BY WAY OF PROPER M ENTIONING IN THE NOTICE BOARD. SD/ - ( PAV AN KUMAR GADALE ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 08 / 03 / 2021 KARUNA SR.PS ITA NO . 1174/MUM/2019 M/S. RASEX TRADERS PVT. LTD. 4 COPY OF THE ORDER FORWARDE D TO : BY ORDER ( ASSTT. REGISTRAR) ITAT MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY//