SRAPPING SOLUTIONS PVT.LTD., MUMBAI v. ITO-9(3)(2), MUMBAI

ITA 6362/MUM/2011 | 2005-2006
Pronouncement Date: 09-10-2013 | Result: Dismissed

Appeal Details

RSA Number 636219914 RSA 2011
Assessee PAN AAFCS5628C
Bench Mumbai
Appeal Number ITA 6362/MUM/2011
Duration Of Justice 2 year(s) 24 day(s)
Appellant SRAPPING SOLUTIONS PVT.LTD., MUMBAI
Respondent ITO-9(3)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 09-10-2013
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 09-10-2013
Date Of Final Hearing 12-08-2013
Next Hearing Date 12-08-2013
Assessment Year 2005-2006
Appeal Filed On 15-09-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN JUDICIAL MEMBER ITA NO. 6362/ MUM/2011 ASSESSMENT YEAR: 2005-06 M/S. STRAPPING SOLUTIONS PVT. LTD. 703 AUTUMN GROVE LOKHANDWALA TOWNSHIP KANDIVALI-EAST MUMBAI- 101 PAN :AAFCS 5628 C VS. ITO 9(3)(2) AAYAKAR BHAVAN MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI BHUPENDRA SHAH RESPONDENT BY : SHRI T. ROUMUAN PAITE DATE OF HEARING : 12.08.2013 DATE OF PRONOUNCEMENT : 09.10.2013 O R D E R PER DR. S.T.M. PAVALAN JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A) -20 MUMBAI DATED 12.07.2011 CONFIRMING T HE PENALTY OF RS.9 75 256/- LEVIED BY THE AO FOR THE ASSESSMENT YEAR 2005-06. 2. BRIEFLY STATED THE ASSESSEE A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING & IMPORTING OF PP STRAPPING & PACKING BELTS WHILE DECLARING A TOTAL INCOME OF RS. NIL HAD CLAIMED A BUSINESS INCOME OF RS.26 65 175/- AS EXEMPT U/S 80IB (4) OF THE INCOME TAX ACT. DURING THE ASSESSME NT PROCEEDINGS FRAMED U/S 143(3) WHEN THE ASSESSEE WAS ASKED TO SUBSTANTIATE THE CLAIM UNDER SECTION 80IB (4) THE ASSESSEE SUBMITTED THE DETAILS OF SALARY A ND WAGES PAID DURING THE YEAR SHOWING THE DETAILS OF WORKERS AT ITS FACTORY STAF F AT OFFICE AND STAFF AT HIS GURGAON BRANCH WHICH INTER ALIA INCLUDE 7 WORKERS IN THE FA CTORY 6 STAFF AT OFFICE AND 4 STAFF ITA NO. 6362/ MUM/2011 M/S. STRAPPING SOLUTIONS PVT. LTD. ASSESSMENT YEAR : 2005-06 2 AT GURGAON TOTALLY AMOUNTING TO 17. SINCE THERE WER E LESS THAN 10 WORKERS INVOLVED IN THE MANUFACTURING PROCESS WHICH WAS NOT IN ACCO RDANCE WITH S. 80IB(4) FOR CLAIMING THE DEDUCTION THE AO AGAIN ASKED THE ASSE SSEE TO FILE COPIES OF ELECTRICITY BILLS DETAILS OF PF & ESIC IN RESPECT OF WORKERS E MPLOYED BY THE ASSESSEE. IN RESPONSE TO THE SAME THE ASSESSEE HAD GIVEN A FRES H LIST OF WORKERS AT FACTORY AND STAFF OFFICE WHICH INTER ALIA INCLUDE 12 WORKERS AT FACTORY AND 5 STAFF AT OFFICE. FROM THE DETAILS FILED BY THE ASSESSEE THE AO FOR THE E LABORATE REASONS STATED IN PAGE 6-7 OF THE ASSESSMENT ORDER HELD THAT THE ASSESSEE HAD NOT COMPLIED WITH THE CONDITION OF MINIMUM 10 WORKERS EMPLOYED IN MANUFACTURING PRO CESS FOR CLAIMING DEDUCTION U/S 80IB AND THEREBY DISALLOWED THE CLAIM OF DEDUCT ION AMOUNTING TO RS.26 65 175/. CONSEQUENTLY IN THE PENALTY PROCEEDINGS THE AO LE VIED A PENALTY OF RS.9 75 256/- BEING 100% OF TAX SOUGHT TO BE EVADED U/S 271(1)(C) AS THE ASSESSEE HAD FURNISHED INACCURATE PARTICULARS AND CONCEALED THE INCOME. ON APPEAL THE LD.CIT(A) CONFIRMED THE PENALTY LEVIED BY THE AO. AGGRIEVED B Y THE IMPUGNED ORDER THE ASSESSEE IS IN APPEAL BEFORE US. 3. BEFORE US THE LD.AR HAS RELIED ON THE DECISION OF THE APEX COURT IN THE CASE OF CIT VS. RELIANCE PETRO PRODUCTS 322 ITR 128 (SC) AND THE DELHI HIGH COURTS DECISION IN THE CASE OF CIT VS DHANAPAL 309 ITR 268 WHICH THE ASSESSEE HAS RELIED BEFORE THE LD.CIT(A) ALSO TO SUBSTANTIATE THE CLAIM THAT THE LD.CIT(A) OUGHT TO HAVE DELETED THE IMPUGNED PENALTY LEVIED BY THE AO. PER CONTRA THE LD.DR. HAS RELIED ON THE ORDERS OF THE LD.CIT(A) & AO TO SUBSTANTIATE TH AT THE LEVY OF PENALTY AND THE CONFIRMATION THEREON ARE JUSTIFIED. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. IT IS PERTINENT TO MENTION THAT IN THE ASSESSMENT PROCEED INGS THE ASSESSEE VIDE LETTER DATED 27.11.2007 INITIALLY SUBMITTED THE DETAILS TH AT THERE ARE 7 WORKERS IN THE FACTORY AT AMLI SYLVASSA UNION TERRITORY 6 STAFF AT OFFICE AND 4 STAFF AT GURGAON TOTALLY AMOUNTING TO 17. HOWEVER WHEN THE AO HAS S OUGHT FOR FURTHER DETAILS THE ASSESSEE VIDE LETTER DATED 04.12.2007 HAD GIVEN A F RESH LIST OF WORKERS AT FACTORY AND STAFF OFFICE AS 12 WORKERS AT FACTORY AND 5 STA FF AT OFFICE. THE AO IN THE ASSESSMENT ORDER HAS NOTED THAT IN THE FRESH LIST O F WORKERS THE ASSESSEE HAS ITA NO. 6362/ MUM/2011 M/S. STRAPPING SOLUTIONS PVT. LTD. ASSESSMENT YEAR : 2005-06 3 INCLUDED THE EMPLOYEES WHO WERE EARLIER SHOWN AS WO RKING FOR THE ASSESSEE AT ITS GURGAON BRANCH OFFICE AND HAS INCLUDED ONE EMPLOYEE EARLIER SHOWN AS STAFF WORKING AT MUMBAI IN THE LIST OF WORKERS AT FACTORY . HOWEVER THE ASSESSEE HAS FAILED TO PRODUCE ANY EVIDENCE TO SUPPORT ITS CLAIM STATED IN THE FRESH LIST. THE INACCURATE PARTICULARS/DETAILS PROVIDED BY THE ASSESSEE IN THE FRESH LIST IN CONTRADICTION WITH THE EARLIER LIST APPEARS THAT THE SAME IS AN ATTEMPT O F THE ASSESSEE TO JUSTIFY THE FULFILLMENT OF THE ALLEGED REQUIREMENT OF SECTION 8 0IB (4) AND THEREBY CLAIMING A DEDUCTION. THE PERUSAL OF THE ASSESSMENT ORDER CLEA RLY INDICATES THAT THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS REGARDING THE EMPLOYMENT OF PERSONS IN THE MANUFACTURING PROCESS IN THE FRESH LIST THAT HAS BE EN FILED ON 04.12.2007. IN VIEW OF THAT MATTER WE DO NOT FIND ANY INFIRMITY IN THE OR DER OF THE LD.CIT(A) CONFIRMING THE IMPUGNED PENALTY LEVIED BY THE AO. THUS THE ORDER OF THE LD.CIT(A) IS UPHELD. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 9 TH DAY OF OCTOBER 2013. SD/- SD/- (P.M. JAGTAP) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED: 09.10.2013. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR E BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.