PJL CLOTHING INDIA PRIVATE LIMITED,MUMBAI vs. DCIT 8 2 1, MUMBAI

IN THE INCOME-TAX APPELLATE TRIBUNAL “C” BENCH,
MUMBAI
BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL
MEMBER
&
SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER
PJL Clothing India Pvt.
Ltd.
505, 506 Dalamal
Chambers, New Marine
Lines,
VitthaldasThackersey
Marg, Churchgate,
Maharashtra-400020
v/s.
बनाम
NFAC/DCIT 8 2 1
Aayakar Bhavan, M.K.
Road, Churchgate,
Mumbai-400020

थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACP2782R
Appellant/अपीलाथ
..
Respondent/ तवाद

Assessee by :
Mr. Satish Modi
Revenue by :
Shri Mahesh Pamnani,Sr.DR

Date of Hearing
05.02.2025
Date of Pronouncement
10.02.2025

आदेश / O R D E R

PERPRABHASH SHANKAR [A.M.] :-

The instantappeal emanating from the appellate order dated 28.10.2024
is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeal)-Mumbai/ National Faceless Appeal Centre, Delhi
[hereinafter referred to as “CIT(A)”] pertaining to the penalty order u/s271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as “Act”]

dated 22.12.2021as passe for the Assessment Year [
2. The assessee has ra
“a. Under The facts erred in confirming t b. The learned CIT A of the IT Act is not claim of weighted d claim in the return of explanation offered i c. The Appellant cra grounds of Appeal.”

PJL ed by the National Faceless Assessmen
[A.Y.] 2016-17. aised the following grounds of appeal:
and circumstances of the case, the learned the penalty of Rs 23,14,410/-u/s 271(1)(c) of Appeals failed to appreciate that the penalty leviable, where the assessee voluntarilty w deduction u/s 35(1)(ii) of the Act and offer of income filed pursuant to notice u/s 148 of is genuine and Bonafide.
aves leave to add alter or amend any of ase are that original assessment u/s 1
assessed income of Rs. 2,37,32,590/
,04,312/- under MAT provisions by he original return,the assessee cla of Rs. 70,00,000/- in respect of agai
Rural Development Society(hencefor quently, on the basis of information r
1)(ii) of the Act in the case M/s Rur ived from CBDT, proceedings u/s 1
rmation RDS, Hyderabad was not rec
1)(ii) and not eligible for raising an search and consequently donorswere deduction. Assessee’s name was also given donation to the above socie
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Clothing India Pvt Ltd.
nt Centre, Delhi d CIT Appeals f the IT Act.
y u/s 271(1)(c) withdrew the red to tax the the Act as the f the forgoing
143(3) of the Act
- under normal y accepting the aimed weighted inst donation of rth ‘RDS’)which regarding bogus ral Development
147 initiated on cognized for the ny donation for also not eligible indicated in the ety and claimed weighted deduction unde was issued to the assess notice by declaring tota reassessment proceeding to tax the entire amount the original return of inc
The Assessing Officer at 3,07,32,590/- as declared
271(1)(c) of the Act for fu of deduction u/s 35(1)(ii) donation to the above so deduction on the basis o rural development societ and Education. The com donation to these institu they were raising donat never intended to make a utilities. The assessee s donations during the cou accepted by the AO. It is certificates of RDSon rece
ITA

PJL er section 35(1)(ii) of the Act. Accordi see. It filed return on 13.04.2019 in al income of Rs. 3,07,32,590/-. Dur gs , the assessee submitted that comp of weighted deduction of Rs. 70,00,0
come pertaining to the donation of R the time of assessment, reassessed th d in the ITR. He also initiated penalty urnishing in accurate particulars of in ) of the Act. Before him,it wascontent ociety was made in good faith and it of contribution receipts and certificate ty and Matrivani Institute of Experim mpany was neither aware of at the utions nor at the time of filing of orig tions on the basis forged certificates a bogus claim for the donations made submitted the relevant documentar urse of original assessment proceedi stated that the assessee came to kno eipt of the notice u/s 148 and therefor
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Clothing India Pvt Ltd.
ingly, notice 148
n compliance of ring the course pany had offered
000/- claimed in Rs. 40,00,000/-.
he income of Rs.
proceedings u/s ncome in respect ted that the said claimed eligible es received from mental Research time of making ginal return that s. The company e for great public ry evidences of ings which were ow of the forged re, offered to tax the entire weighted ded return pertaining to do institutions. This offer wa litigation. The AO obser
CBDT and examining oth and notice u/s 148 was is with the AO that M/s RD u/s 35(1)(ii) and was not scientific research. As pe basis bogus/fake docume in cash after deducting c entities and receiving so to them after deducting issued to the assessee as i which was bogus entities filed in compliance of no assessee came forward f before proceedings u/s 1
aware about the bogus e came forward to surrend upon him. So claim of th
ITA

PJL duction of Rs. 70,00,000/- claimed onations made of Rs. 40,00,000/- as done in good faith in order to buy rved that on the basis of information her relevant details, proceedings u/s ssued to the assessee. There was concr
DS was bogus society and not entitle t eligible for raising any donation for u r information, society was receiving d ents and returning donation amount commission. It was a racket running called donations from the donors and certain amount of commission. When it was also beneficiary oftaking deduct s, it surrendered the weighted deducti otice u/s 148. Sensing the bogus claim for surrendering the amount of ded
147.It is stated by the AO that the as entity of claiming deduction u/s 35( der the same until or unless notice u/s he assessee that itsuo-moto surrende
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in the original
- to these two peace and avoid n received from 147 for initiated rete information ed for deduction undertaking any donations on the to the assessees g through bogus d returning cash n notice u/s 148
tion u/s 35(1)(ii) ion in the return m of deduction, duction and not ssessee was well
(1)(ii) but never s 148 was served ered the amount the donation in the revis would have option of filin tax before initiating the p
148 was served upon hi deduction by the assess claimed in the original IT of furnishing inaccurate reasonable cause and w inaccurate particulars of i
4. In the subsequent made before the AO.H observations of the AO u assessee.
5. Before us,during h contentions as made be assessee made a bonafide the said deduction in res by the AO as per the retu of coordinate Bench of IT in the case of Armoury
ITA

PJL se return could not be accepted. If it w ng a revise return before that and woul proceedings u/s 147. It was awaiting ti im and upon sensing the bogus enti see in the ITR, surrendered of dona
TR.So it was held that assessee had co e particulars of income knowingly a was liable to penalty u/s 271(1)(c) fo income.
appeal,the assessee submitted the sam
However,the ld.CIT(A) endorsed the upholding the penalty and dismissed t hearing of the case,the ld.AR has rep efore the authorities below.It is sub e claim in the return filed and volunta sponse to the return u/s 148 which wa urned income.He also placed reliance
TAT Mumbai in ITA No.3299/3300/3
International and Ashvin Naraya Ba
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was so, asseesee ld have paid due ill the notice u/s ity and claim of ation deduction mmitted default nd without any or furnishing of me arguments as e findings and he appeal of the peated the same mitted that the rily surrendered as also accepted on the decision
3301/Mum/2017
ajori in ITA No.

369/SRT/2022 of ITAT, the other hand relied upo
6. We have carefully record,rival submissions find any infirmity in the distinguishable and not issue basically pertained issue here.In the presen surrendered the impugn
148 of theAct.It is eviden on21.12.2018.Notice u/s the receipt of information u/s 147 was filed on between the original asse cannot be said by any str bonafide and made volun asseesee would have opt have paid due tax befor awaiting till the notice u bogus entity and claim of ITA

PJL

,Surat(SMC).The ld.Departmental Re on the orders of authorities below.
y pondered over all relevant facts and the provisions of the law in this re e penalty order. The cited decisions o applicable to the case in hand.Inthe to satisfaction drawn by the assessee nt case,there is absolutely no doubtth ned deduction only in consequence to nt that the original assessment in this c
148 was issued claim on 20.02.2019
n by the AO regarding the bogus natu
13.04.2019.Thus,there was a subst essment and the filing of return u/s retch of imagination that the impugne ntarily. The AO has rightly observed t tion of filing a revised return before re initiating the proceedings u/s 147
u/s 148 was served upon him and up f deduction by the assessee in the ITR
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epresentative,on of the case on egard.We do not of the ld.AR are ese decisions,the which is not the hat the assessee o the notice u/s case was framed
9 consequent to ure of the.Return antial time gap
147.Therefore,it d surrender was that if it was so, that and would
7. Assessee was pon sensing the R, surrendered of donation deduction claim for which penalty was jus
7. In this case,the retu which revealed that the bogus.On identical fact
CIT(2007) 209 CTR 5
High Court held that the A the assessee had filed the init the revised return was filed o concealed the income and. fi there is concealment of incom case and the fact finding auth facts of the case, the assessee payment of tax, we are of th case requiring the admission the case of Mak Dat
593(SC)where also the s the sense that the offer of s search conducted in the sister the surrender of income was has noticed that certain d statements, memorandum of Returns and assessment ord
ITA

PJL med in the original ITR which was fou stified.
urn was filed u/s 147,after enquiry by deduction claimed in the original r ts, in the case of Jyoti Laxma
5(Bom)/ 292 ITR 163, the hon’b
AO as well as the Tribunal having come to t tial return dishonestly with a view to conce out of compulsion, i.e. after having found tha filed a false return with a view to avoid tax me or not has to be decided with reference to horities under the Act having come to the con e had concealed the income initially with a he view that no substantial question of law n of the appeal. Consequently, the same is he ta Private Limited v. CIT (20
surrender of income in this case was surrender was made in view of detection ma r concern of the assessee,it was held that it c s voluntary. AO during the course of assess documents comprising of share applica f association of companies, affidavits, cop ders and blank share transfer deeds duly
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(या यक सदय/JUDICIAL ME
ITA

PJL of survey proceedings under Section 13
sister concern of the assessee. The survey wa ssessee filed its return of income. Had it be d true disclosure of its income, it would ha ive of the amount which was surrendered oceedings. Consequently, it is clear that th ncome. It is the statutory duty of the assess account, to explain the source of payments e return of income filed by it from year to ye gorical finding that he was satisfied that f income and is liable for penalty proceed the Income Tax Act, 1961. ve discussion,we hold that the pena ee for claiming deduction on bogus he original ITR and notwithstanding ed deduction which was in no case a v hold the penalty order and also the app peal of the assessee is dismissed.
in the open court on 10.02.2025. HOUDHRY
PRABHAS
EMBER)
(लेखाकार सदय/ACC
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33A conducted on as conducted more een the intention of ave filed the return d later during the he assessee had no see to record all its made by it and to ear. The AO, in our t the assessee had ings under Section alty was rightly s deduction u/s g its subsequent voluntary act on pellate order.
/-
H SHANKAR
COUNTANT MEMBER

Place: मुंबई/Mumbai
दनांक /Date10.02.2025
अ नकेत संह राजपूत/टेनो
आदेश की ितिलिप अेिषत
1. अपीलाथ / The Appellant
2. थ / The Respondent.
3. आयकर आयु / CIT
4. िवभागीय ितिनिध, आय
Mumbai
5. गाड फाईल / Guard file.

ITA

PJL

त/Copy of the Order forwarded to :
t

यकर अपीलीय अिधकरण DR, ITAT,

स
ािपत ित //Tru
आदेशानुसार/ BY उप/सहायक पंजीकार (Dy./Asstt. R
आयकर अपीलीय अिधकरण/ ITAT
Mumbai.
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ue Copy//
ORDER,