DCIT CIR 3(3), MUMBAI vs. TWO BUILDERS AND DEVELOPERS P.LTD, MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा सद� राजे� के अनुसार PER RAJENDRA, AM- Challenging the order dt.02.01.2012 of the CIT(A)-7, Mumbai the Assessing Officer(AO)has filed the present appeal .Effective ground of appeal is about deletion of penalty levied by the AO. 2.Assessee-company filed its return of income on 07.11.2006 declaring total income of Rs.1.40 Crores.The AO completed the assessment on 26.11.2008,u/s.143(3) of the Act,assessing its income at Rs.1.44crores.While completing the assessment, the AO held that income arising to the assessee on sale of immovable property was to be assessed as business income and not as capital gains.Addition made by the AO was confirmed by the First Appellate Authority (FAA). 3.Penalty proceedings u/s. 271(1)(c) of the Act were initiated on the ground that assessee had furnished inaccurate particulars of income.In response to the show cause notice for levying concealment penalty the assessee filed detailed explanation,vide its letter dt. 03.01.2011.After considering the submission of the assessee,the AO levied penalty of Rs.1.47 Crores u/s. 271 (1) (c)of the Act on 10.03.2011. Aggrieved by the penalty order of the AO, the assessee preferred an appeal before the FAA.After considering the submission of the assessee,the assessment order and the penalty order the FAA held that the AO had changed the heads of income and it could not be held that the assessee had furnished inaccurate particulars of income. In the meanwhile,the assessee preferred an appeal before the Tribunal against the quantum addition.Vide its order,dt.06.08. 2014(ITA/ 8454/Mum/2010),the Tribunal restored back the matter to the file of the FAA for fresh adjudication.

ITA 3723/M/12(06-07)