CIT v. Aero Traders Pvt. Ltd.

ITO 32(1)(3), Mumbai vs. Shri Bhavik Jayant Gandhi, Mumbai

Bench: Shri Mahavir Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…me or furnishing of inaccurate particulars of income. Thus we direct the Assessing Officer to delete the penalty levied u/s. 271(1)(c) of the Act.” 14. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 15. In the case on hand the Ld. CIT(A) as well as Coordinate Bench in assessee’s case, only estimated the Gross Profit on the alle…

Kamlesh M. Kanungo, Mumbai vs. Dy CIT, CC-1(4), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri Shamim Yahya, Hon'Ble & Shri C.N. Prasad, Hon'Ble

…ssessee is assessed on estimate basis and additions are made therein on that basis.” 10 ITA.NO. 139/MUM/2021 (A.Y: 2009-10) Kamlesh Manohar Kanungo 12. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 13. In the case on hand the Ld. Assessing Officer and Ld.CIT(A) as well has only estimated the Gross Profit on the alleged non-gen…

ITO Ward -32(1)(1), Mumbai vs. Hina Arvind Shah, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri Shamim Yahya, Hon'Ble & Shri C.N. Prasad, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 8. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9 ITA.NO. 161/MUM/2021 (A.Y: 2010-11) Smt Hina Arvind Shah 9. In the case on hand the Assessing Officer has only estimated the Gro…

ITO 32(1)(1), Mumbai vs. M/S Abhay Automotive Company, Mumbai

In the result, the appeals filed by the revenue is hereby dismissed

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm (Hearing Through Video Conferencing Mode) आयकर अपील सं/ I.T.A. No. 780/Mum/2020 (निर्धारण वर्ा / Assessment Year: 2009-10) Ito-32(1)(1) बिधम/ M/S. Abhay Automotive Room No.703, 7Th Floor, Company Vs. Kautilya Bhavan, Bandra B/402, Sumer Nagar Building Kurla Complex, Bandra (E), No.3, Sv Road, Borivali East, Mumbai-400051. Mumbai-400092. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aajfa3745K (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Brajendra Kumar (Dr) Assessee By: Shri Kartik Katmutia (Ar) सुनवाई की तारीख / Date Of Hearing: 11/08/2021 घोषणा की तारीख /Date Of Pronouncement: 27/10/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 29.11.2019 Passed By The Commissioner Of Income Tax (Appeals)-44, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2009-10 In Which The Penalty Levied By Ao Has Been Ordered To Be Deleted. 2. The Revenue Has Raised The Following Grounds: - “1. Grounds Of Appeal, On The & In The Circumstances Of The Case, The Ld. Cit(A) Erred In Deleting The Penalty Levied By The Ao U/S 271(1)(C) Of The Income Tax Act 1961, Of Rs. 1,81,613/- Without Appreciating The Facts That The Assessing Officer Has

…ion was raised. No penalty is leviable when the income has been estimated. In this regard, we find support of the decision of Hon’ble Punjab & Haryana High Court in the case of Harigopal Singh Vs. CIT (2002) 258 ITR 85 (P & H), CIT vs. Aero Traders Pvt. Ltd., 322 ITR 316 (Del) & CIT Vs. Subhash Trading Co., 221 ITR 110 (Guj.) in which it is specifically held that the penalty is not leviable when the profit was estimated on estimation basis. Taking into account all the facts and circumstances of the case, we are of the view that the finding of the CIT(Appeals) is quite justifiable which is not liable to be interfe…

ITO 22(1)(6), Mumbai vs. Broadcasting Services, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 8. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9 ITA.NO. 1312/MUM/2020 (A.Y: 2009-10) M/s. Broadcasting Services 9. In the case on hand the Assessing Officer has only estimated…

Asst CIT 32 (2), Mumbai vs. Mangalsingh M Rathore, Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. No.07/Mum/2020 (निर्धारण वर्ा / Assessment Year: 2010-11) बिधम/ Acit-32(2) Mangal Singh M. Rathore 720, 7Th Floor, Kautilya B-1, Neela Apt, Svp Road, Vs. Bhavan, C-41 To C-43, G Borivali (W), Mumbai- Block, Bkc, Bandra (E), 400092. Mumbai-400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaipr6967M (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Ms. Usha Gaikwad (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 14/07/2021 घोषणा की तारीख /Date Of Pronouncement: 03/09/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 31.10.2019 Passed By The Commissioner Of Income Tax (Appeals) -44 Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2010- 11 In Which The Penalty Levied By Ao Has Been Order To Be Deleted.

…is specifically held that no penalty is liable to be sustainable where the profit was estimated on the estimation basis. The Hon’ble Punjab & Haryana High Court in the case of Harigopal Singh Vs. CIT (2002) 258 ITR 85 (P & H), CIT vs. Aero Traders Pvt. Ltd., 322 ITR 316 (Del) & CIT Vs. Subhash Trading Co., 221 ITR 110 (Guj.) Taking into account of all the facts and circumstances of the case, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage. Accordingly, we upheld the finding of the CIT(A) on this is…

ACIT 26 (1), Mumbai vs. Shri. Ghanshyam T Gursahani, Mumbai

In the result Revenue's appeal is dismissed

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘G‘ BENCH MUMBAI BEFORE: SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ACIT-26(1) Vs. Shri Ghanshyam T. Gursahani Room No.623, 6th Floor C-602, Sagar Swapna Nagar Kautilya Bhavan Mulund (W) Bandra Kurla Complex, Mumbai – 400 080 Bandra (E) Mumbai – 400 051 PAN/GIR No. AABPG6912E (Appellant) .. (Respondent) Revenue by Shri T.S. Khalsa Assessee by None Date of Hearing 29/07/2021 Date of Pronouncement 02/08/2021 आदेश / O R D E R PER SHRI SHAMIM YAHYA AM This appeal by the revenue is against order of learned CIT(A)-40, Mumbai dated 23/10/2…

ACIT- Circle- 9(3)(2), Mumbai vs. M/S. Gala Pharma Pvt. Ltd., Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 7. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble 9 ITA.NO. 6007/MUM/2019 (A.Y: 2009-10) M/s. Glow Pharma Pvt. Ltd., High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 8. In the case on hand the Assessing Officer treated entire bo…

Income Tax Officer-28 (1)(5), Mumbai vs. Ganesh Engineering Workshop, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 8. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9 ITA.NO. 5773/MUM/2019 (A.Y: 2010-11) M/s. Ganesh Engineering Workshop 9. In the case on hand the Assessing Officer treated entir…

ACIT - 31(3), Mumbai vs. Shaheen Enterprises, Mumbai

In the result, appeal is dismissed

Bench: Shri Saktijit Dey & Shri S. Rifaur Rahman

…made only on the basis of estimate made by the A.O. It is settled legal position that when income is estimated, then there can be no question of imposing penalty u/s 271 (1',(c) of the Act. The Hon’ble Delhi High Court in CIT Vs, Aero Traders Pvt. Ltd (2010) 322 ITR 316 (Del.) has held that no penalty us 271 (1)(c) can be imposed when income is determined on estimate basis. The similar view has been taken by: a) Hon’ble Punjab and Haryana high Court in Harigopl Singh V. CIT, (2002) 256 ITR 85 (P&H); b) Hon’ble Gujarat High Court in CIT v/s Subhash Trading Co. 22 ITR 110 (Guj.). 6.3.8 Further, it is seen that the…

ACIT 13 (3)(1) Mumbai, Mumbai vs. Weld Tech Engineers India Private Limited `, Mumbai

In the result, appeals of the Revenue are dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 8. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9. In the caseson hand the Assessing Officer has only estimated the Gross Profit on the alleged non-genuine purchases without t…

Dy CIT-9(1)(2), Mumbai vs. M/S Apex Softcell (India) Pvt Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 8. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated 9 ITA.NOs. 6271 & 6272/MUM/2019 (A.Y. 2009-10 & A.Y. 2010-11) M/s. APEX Softcell (India) Pvt. Ltd., rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9. In the cases on hand the A…

Dy CIT-9(1)(2), Mumbai vs. M/S Apex Softcell (India) Pvt Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 8. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated 9 ITA.NOs. 6271 & 6272/MUM/2019 (A.Y. 2009-10 & A.Y. 2010-11) M/s. APEX Softcell (India) Pvt. Ltd., rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9. In the cases on hand the A…

Aas Mohammed Khan, Mumbai vs. Income Tax Officer 26(1) (1), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 7. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9 ITA.NO. 5985/MUM/2019 (A.Y: 2009-10) AAS Mohammed Khan 8. In the case on hand the Assessing Officer has only estimated the Gross…

ITO 13 (3)(1), Mumbai vs. M/S Reinfibre Products India Pvt Ltd., Mumbai

In the result, Revenue’s appeal is dismissed

Bench: Shri S. Rifaur Rahman & Shri Pavan Kumar Gadale

…ed for furnishing inaccurate particulars of income in respect of bogus purchases in the case of Evergreen technologies Pvt Ltd Vs DCIT ITA No 1833/Mum/2016 dated 26.07.2017. Similarly, the Hon'ble Delhi High Court in case of CIT Vs Aero traders Pvt Ltd (2010) 322 ITR 316 (Del) has held that no penalty can be imposed u/s 271(1)(c) when income is determined on estimate basis. The similar view has been taken by: A) Hon'ble Apex Court in the case of CIT Vs Sangrur Vanaspati Mills Ltd SLP No 31541 of 2008 dated 19.12.2008 B) Hon'ble Punjab and Haryana High Court in Harigopal Singh Vs CIT (2002) 2581TR 85 C) Hon'ble Gu…

ITO-20(20)(3), Mumbai vs. Shri Kamrulla Rehatulla Khan, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis.” 8. Similar view has been taken by the Hon'ble Delhi High Court in the case of CIT v. Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon'ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. 9 ITA.NO. 5737/MUM/2019 (A.Y: 2009-10) Shri Kamrullah Rehmatulla Khan 9. In the case on hand the Assessing Officer has only estima…

Income Tax Officer 13(2) (3), Mumbai vs. Swar Creative Art Pvt Ltd, Mumbai

Appeal of the Revenue is dismissed, sans merit

Bench: Shri Vikas Awasthy & Shri M. Balaganesh, Accountnt Member आअसं. 5992/मुं/2019 (िन.व.2009-10) Ito-13(2)(4), R. No. 146B, 1St Floor, Aayakar Bhavan, M.K. Road, Mumbai-400020. ...... अपीलाथ- /Appellant

…repeatedly held that no penalty under section 271(1)(c) of the Act is attracted, where the additions are made merely on estimations. आअसं. 5992/मुं/2019 (िन.व.2009-10) 4. The Hon’ble Delhi High Court in the case of CIT vs. Aero Traders Pvt. Ltd. reported as 322 ITR 326 has held that no penalty under section 271(1)(c) of the Act can be imposed where income is determined on estimate basis. Penalty being quasi criminal proceedings, duty is cast upon the AO to establish guilt of the assessee in concealing the income or furnishing inaccurate particulars of such income. The Hon’ble Gujarat High Court in the case of…

M/S Sher Mohammed & Co, Mumbai vs. ACIT Ward-26(3), Mumbai

Bench: Shri Vikas Awasthy & Shri M. Balaganeshआअसं. 5986/मुं/2019 (िन.व.2009-10) M/S. Sher Mohammed & Co., Flat No. 23, 6A, Taxi Men Colony, Lbs Marg, Kurla (West), Mumbai-400070. Pan: Aasfs7479M ...... अपीलाथ- /Appellant बनाम Vs. Acit- Ward (26(3), C-11, 5Th Floor, R.No. 501, Pratyakshakar Bhavan, Bkc, Bandra (E), Mumbai-400051. ..... .ितवाद0/Respondent

…are several decisions by Hon’ble High Courts in support of the view that no penalty under section 271(1)(c) is to be levied where addition is made on estimation basis. 7. The Hon’ble Delhi High Court in the case of CIT vs. Aero Traders Pvt. Ltd. reported as 322 ITR 326 has held that no penalty under section 271(1)(c) of the Act can be imposed where the income is determined on estimate basis. Penalty आअसं. 5986/मुं/2019 (िन.व.2009-10) being quasi criminal proceedings, duty is cast upon the AO to establish guilt of the assessee in concealing the income or furnishing inaccurate particulars of such income. The…

ITO-28(2)(1), Mumbai vs. M/S Lesly Baby Thomas, Mumbai

Bench: Shri Vikas Awasthy & Shri M. Balaganesh, Accountnt Member आअसं.4934/मुं/2019 (िन.व.2009-10) Ito-28(2)(1), R. No. 326, 3Rd Floor, Tower No.6, Vashi Rly. Station Complex, Vashi, Navi Mumbai-400703. ...... अपीलाथ. /Appellant बनाम Vs. M/S Lesly Baby Thomas Shop No.22, Mahavir Bhakti, Plot No. 93, Sector-15, Koperkhairane, Navi Mumbai-400709. Pan: Adbpt4067A ..... /ितवाद1/Respondent

…me and again held that no penalty is leviable where addition has been made merely on estimations. The CIT(A) has deleted the penalty by following the order of Tribunal. 6. The Hon’ble Delhi High Court in the case of CIT vs. Aero Traders Pvt. Ltd. reported as 322 ITR 326 has held that no penalty under section 271(1)(c) of the Act can be imposed where income is determined on estimate basis. Penalty being quasi criminal proceedings, duty is cast upon the AO to establish guilt of the assessee in concealing the income or furnishing inaccurate particulars of such income. The Hon’ble Gujarat High Court in the case of C…