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Income Tax Appellate Tribunal, ‘B’ MUMBAI
आदेश / O R D E R PER C.N.PRASAD (JM): These appeals in 7462/Mum/2019 for A.Yrs.2009-10 & 2010-11 arise out of the order by the ld. Commissioner of Income Tax (Appeals)-2, Mumbai in appeal No.10153/2018-19 & 10154/2018-19 dated 19/09/2019 (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). 2. We have heard rival submissions and perused the material available on record. We find that the ld. AO had levied penalty on the estimated addition made on account of bogus purchases. This penalty levied u/s.271(1)(c) of the Act on an addition made on account of bogus purchases was deleted by the ld. CIT(A) on the primary ground that no penalty would survive on an estimated addition. Aggrieved, the revenue is in appeal before us for both the years.
We find at the outset, the ld AR argued that penalty that is in dispute before us, for each of the years, falls below the monetary limit prescribed by the CBDT in its Circular No. 17/2019 dated 08/08/2019 for preferring appeal by the Revenue before this Tribunal. We find that the ld. DR vehemently argued that the said cases fall within the exception provided in para 10(e) of the said Circular and accordingly he argued that the appeals are maintainable. We find that the exception provided in para 10(e) of the Circular 17/2019 dated 08/08/2019 is applicable only for the quantum proceedings and the same cannot be made applicable for penalty proceedings. It is well settled that penalty and quantum assessment proceedings are distinct and separate. Accordingly, we dismiss these appeals of the Revenue by following the aforesaid Circular No.17/2019 dated 08/08/2019 and hold that the appeals of the Revenue are not maintainable.
In the result, appeals of the Revenue are dismissed.
Order pronounced in open Court on 12/05/2021.