PARCHURI V. RAO, MUMBAI v. ITO 26(1)(2), MUMBAI

ITA 5158/MUM/2009 | 2004-2005
Pronouncement Date: 08-07-2010 | Result: Allowed

Appeal Details

RSA Number 515819914 RSA 2009
Bench Mumbai
Appeal Number ITA 5158/MUM/2009
Duration Of Justice 9 month(s) 28 day(s)
Appellant PARCHURI V. RAO, MUMBAI
Respondent ITO 26(1)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 08-07-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 08-07-2010
Date Of Final Hearing 08-07-2010
Next Hearing Date 08-07-2010
Assessment Year 2004-2005
Appeal Filed On 10-09-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C : MUMBAI BEFORE SHRI D. MANMOHAN VICE PRESIDENT AND RAJENDR A SINGH A.M. ITA. NO. 5158/MUM/2009 - ASSESSMENT YEAR 2004-2005 ITA. NO. 5159/MUM/2009 - ASSESSMENT YEAR 2003-2004 ITA. NO. 5160/MUM/2009 - ASSESSMENT YEAR 2002-2003 PARCHURI V. RAO MUMBAI 400 081. PAN AABPP-3091-P VS. ITO 26 (1) (2) MUMBAI 400 002. (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI RAVI KRISHNAN MULCHANDANI FOR RESPONDENT : MRS. M. KHAR (DR) ORDER PER D. MANMOHAN V.P. 1. THESE APPEALS ARE FILED BY THE ASSESSEE. IDENTI CAL ISSUE IS INVOLVED AND HENCE WE PROCEED TO DISPOSE OF THESE A PPEALS BY A COMBINED ORDER FOR THE SAKE OF CONVENIENCE. PENALTY OF RS.23 960/- RS.24 913/- AND RS.16 891/- LEVIED BY THE ASSESSING OFFICER UND ER SECTION 271 (1) (C) OF THE ACT HAVING BEEN CONFIRMED BY THE LEARNED CIT (A) THE ASSESSEE IS IN APPEAL BEFORE US. 2. FACTS IN BRIEF ARE THAT THE ASSESSEE IS AN EMPL OYEE OF BHARAT PETROLEUM CORPORATION LTD. (HEREINAFTER CALLED AS BPCL). EMPLOYEES OF BPCL BY AND LARGE FILE THEIR RESPECTIVE RETURNS OF INCOME AS PER THE TDS SALARY CERTIFICATE IN FORM 16 AND THUS IN TURN DI D NOT DISCLOSE THE MAINTENANCE CHARGES RECEIVED FROM THE EMPLOYER. AS IS THE CASE WITH THE OTHER EMPLOYEES ASSESSEE IS ALSO ONE OF THE EMPLOY EE WHO RECEIVED CERTAIN AMOUNTS FROM BPCL UNDER THE SCHEME OF SELF- LEASING INTRODUCED BY THE COMPANY. UPON POINTING OUT THE SAID MISTAKE ASSESSEE ACCEPTED THE MISTAKE AND THE SAME WAS ADDED TO THE INCOME OF FERED TO TAX. CONSEQUENT THERETO ASSESSING OFFICER LEVIED PENALT Y UNDER SECTION 271 (1) (C) OF THE ACT. 2 3. AT THE TIME OF HEARING LEARNED COUNSEL APPEAR ING ON BEHALF OF THE ASSESSEE RELIED UPON THE FOLLOWING DECISION OF THE ITAT MUMBAI BENCHES IN THE CASE OF OTHER EMPLOYEE OF BPCL WHO IS SIMILARLY SITUATED WHEREIN PENALTY LEVIED BY THE ASSESSING OFFICER WAS CANCELLED BY THE TRIBUNAL ON THE GROUND THAT NON-DISCLOSURE OF MAINT ENANCE CHARGES WAS ON ACCOUNT OF A BONAFIDE MISTAKE AND HENCE PENAL PR OVISIONS UNDER SECTION 271 (1) (C) OF THE ACT ARE NOT APPLICABLE. (I) ORDER OF ITAT D BENCH IN THE CASE OF SHRI DATTA NAND B. KAMBALI VS. ITO VIDE ITA. NOS. 5161 5162 & 5163/MUM/2009 DATED 14 TH MAY 2010. 4. ON THE OTHER HAND LEARNED DR RELIED UPON THE OR DERS PASSED BY THE TAX AUTHORITIES. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. IT MAY NOT BE OUT OF PLACE TO MENTION THAT ONE OF THE MEMBERS (VICE PRES IDENT) IS A PARTY TO A DECISION TAKEN UNDER IDENTICAL CIRCUMSTANCES (ITA. NOS. 5986 5987 AND 5988/MUM/2009 DATED 30 TH JUNE 2010 IN THE CASE OF SMT. VERONICA J. CORREIA) WHEREIN THE BENCH FOLLOWED THE ORDER OF IT AT MUMBAI BENCHES IN THE CASES MENTIONED BELOW. (1) ORDER OF ITAT B BENCH IN THE CASE OF MR. MA KARAND C. JOSHI VIDE ITA. NO. 3522/MUM/2008 DATED 17-9-2009 (2) ORDER OF ITAT D BENCH IN THE CASE OF SHRI RA VINDRA LAXMAN SATHE VS. ITO VIDE ITA. NO. 2828/MU M/2008 DATED 22-12-2009 6. THUS CONSISTENT WITH THE VIEW TAKEN BY THE ITA T MUMBAI BENCHES UNDER IDENTICAL CIRCUMSTANCES WE ARE OF TH E VIEW THAT THIS IS NOT A FIT CASE FOR LEVY OF PENALTY UNDER SECTION 27 1 (1) (C) OF THE ACT. BY RESPECTFULLY FOLLOWING THE DECISIONS CITED (SUPRA) WE CANCEL THE PENALTY LEVIED BY THE ASSESSING OFFICER AND ALLOW THE APPEA LS OF THE ASSESSEE. 3 ITA. NOS. 5158 5159 & 5160/MUM/2009 PARCHURI V. RAO ORDER PRONOUNCED ACCORDINGLY IN THE OPEN COURT. SD/- SD/- (RAJENDRA SINGH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI DATE 08 TH JULY 2010. VBP/- COPY TO 1. PARCHURI V. RAO A-601 SHANKAR NEELM NAGAR PH- II GAWANPADA MULUND (EAST) MUMBAI 400 081. PAN AABPP-3091-P 2. ITO 26 (1) (2) K.G. MITTAL AYURVEDIC HOSPITAL B LDG. CHARNI ROAD MUMBAI 400 002. 3. CIT (A)-XXVI MUMBAI 4. CIT M.C.-XXVI MUMBAI. 5. D.R. C BENCH 6. GUARD FILE. (TRUE COPY) BY ORDER ASST. REGISTRAR ITAT MUMBAI BENCHES MUMBAI.