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IN THE INCOME-TAX APPELLATE TRIBUNAL “J” BENCH MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER (Assessment Year 2013-14) Sapphire Space Infracon P. Ltd. ITO 11(1)(3), 23-F, Laxmi Industrial Estate, R.No. 201, Aayakar Bhavan, New Link Road, Andheri West, Vs. New Marine Lines, M.K. Mumbai-400053. Road, Mumbai-20. PAN: AALCS7514B Appellant Respondent Appellant by : None Respondent by : Ms. Arju Garodia (DR) Date of Hearing : 21.06.2018 Date of Pronouncement : 21.06.2018 ORDER UNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER;
This appeal by assessee under section 253 of the Income-tax Act (the Act) is directed against the order of ld. Commissioner of Income-tax (Appeals)- 18, Mumbai [ld. CIT(A)] dated 08.11.2016 for Assessment Year 2013-14, wherein the order of penalty levied under section 271(1)(c) of the Act was confirmed. The assessee has raised the following grounds of appeal:
1. The authorities below have erred in law as well as on facts in levying/confirming levy of penalty under section 271(1)(c) of Rs. 746,281/-.
Brief facts and of the case are that the assessee filed return of income for Assessment Year 2013-14 on 30.09.2013 declaring total loss of Rs. 7,76,817/-. The assessment was completed under section 143(3) on 29.02.2016. The Assessing Officer while passing the assessment order disallowed depreciation of Rs. 23,44,806/-. The assessing officer Mum 17 - Sapphire Space Infracon P. Ltd. disallowed depreciation holding that there was no business income during the year. The Assessing Officer initiated the penalty under section 271(1)(c) while passing the assessment order. Notice under section 271(1)(c) read with section 274 dated 29.02.2016 was served upon the assessee. No reply was filed by assessee in response to the notice under section 274rws 271(1)(c). No appeal against the disallowance/addition in quantum assessment. The Assessing Officer levied the penalty @ 100% of tax sought to be evaded. The Assessing Officer worked out the penalty of Rs. 7,46,281/- vide its order dated 31.08.2016. On appeal before the ld. CIT(A), the action of Assessing Officer was confirmed. Therefore, further aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before the Tribunal.
None appeared on behalf of assessee despite sending notice through RPAD. The notice sent through RPAD for the hearing fixed for 21.06.2016 was returned back with the remark of postal authority “Left”.
Therefore, we left no option except to decide the appeal after hearing the ld. DR for the Revenue and on the basis of material available on record.
The ld. DR for the Revenue supported the order of lower authority. The ld. DR further submits that the assessee has not filed any appeal against the disallowance of depreciation in quantum assessment. The disallowance attains finality. Mum 17 - Sapphire Space Infracon P. Ltd.
We have considered the submission of ld. DR and perused the order of authorities below. We have noted that in the assessment order passed under section 143(3) of the Act, the Assessing Officer disallowed depreciation of Rs. 23,44,806/-. We have further noted that no further appeal was filed against such disallowance.
Before us neither representative of assessee has come forward nor any documentary evidence is furnished to substantiate its claim, therefore, we do not find any reason to interfere with the finding of lower authority, therefore, appeal of the assessee is dismissed.
In the result, appeal filed by assessee is dismissed.