Commissioner of Income-tax v. Md. Warasat Hussain

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

…o support this contention reliance was placed on following decisions: (1) CIT v/s Harparshad & Co. Ltd. [328 ITR 53 (Del.)] (2) Vidya Sagar Oswal v/s CIT [108 ITR 861 (P&H)]. (3) Samundar Bhan Sadh v/s CIT [188 ITR 638 (P&H)] (4) CIT v/s Md. Warasat Hussain [171 ITR 405 (Patna)] The CIT(A) rejected the contentions of the assessee and upheld levy of penalty under section 271(1)(c) of the Act on the additions made by AO by estimating GP on bogus purchases. The CIT(A) to support his decision relied on following decisions: (1) Kalpak Bazar v/s CIT [1 taxmann.com 215 (Karala)] (2) CIT v/s Harparshad & Co. Ltd. [328…

M/S. J Kumar -Rps Joint Venture, Mumbai vs. DCIT, Central Circle-5(1), Mumbai

In the result, impugned order is set aside and the appeal of assessee is allowed

Bench: Shri Pramod Kumar & Shri Vikas Awasthyआअसं. 5081/मुं/2019 ("न.व. 2011-12) M/S. J. Kumar –Rps Joint Venture, C-113, Shyam Kamal, Agarwal Market, Tejpal Road, Vile Parle (East), Mumbai 400 057 Pan: Aabtj1167E ...... अपीलाथ" /Appellant बनाम Vs. Dcit Central Circle -5(1), Air India Building, Nariman Point, Mumbai 400 021 ..... ""तवाद"/Respondent

…contention that no penalty is attracted where additions are made on estimations. The CIT(A) has drawn support from the following decisions to wreck the argument of assessee:- (i) Addl. CIT vs. Chandrakantha, 295 ITR 607(MP) (ii) CIT vs. Md. Warasat Hussain, 171 ITR 405(Pat), (iii)AM Shah & Co. Vs. CIT,238 ITR 415(Guj) (iv) CIT vs. Krishnaswamy & Sons, 219 ITR 157 (Mad) None of the judgments referred by CIT(A) is from Hon'ble Jurisdictional High Court. The Hon'ble Apex Court in the case of CIT vs. Vegetable Products Ltd.,88 ITR 192 has held that where two reasonable constructions of a taxing provision are possi…

Punjab Sind Dairy Products P.Ltd, Mumbai vs. DCIT Cen Cir 33, Mumbai

In the result, appeal of the assessee in ITA no

Bench: Shri Pawan Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6246 & 6247/Mum/2017 (नििाारण वर्ा / Assessment Year : 2006-07 & 2007-08) बिाम/ Punjab Sind Dairy Product Acit Central Circle- P. Ltd., 33,Room No. 32(3), Ag-2 Cama Industrial Aayakar Bhavan, V. Estate, Walbhatt Road, Mumbai-400020 Goregaon (W), Mumbai- 400063 स्थायी ऱेखा सं./ Pan: Aadcp5419Q (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri. K.K. Lalkaka (Ar) Revenue By: Shri. D.G Pansari (Dr) सुनवाई की तारीख /Date Of Hearing : 16.01.2019 घोषणा की तारीख /Date Of Pronouncement : 26.03.2019 आदेश / O R D E R Per Ramit Kochar: These Two Appeals, Filed By Assessee, Being Ita No. 6246 & 6247/Mum/2017, Are Directed Against Two Separate Appellate Orders Both Dated 22.08.2017 In Appeal No. Cit(A)-53/Dccc-5(2)/It- 123/2012-13 & Cit(A)-53/Dccc-5(2)/It-124/2012-13 Respectively, Passed By Learned Commissioner Of Income Tax (Appeals)-53, Mumbai (Hereinafter Called “The Cit(A)”), For Assessment Year 2006-07 & 2007- 08 Respectively, The Appellate Proceedings Had Arisen Before Learned Cit(A) From Two Separate Penalty Orders Both Dated 29.03.2012 Passed By Learned Assessing Officer (Hereinafter Called “The Ao”) U/S 271(1)(C)

…blished mode of determination of income where books of accounts are rejected. Levy of penalty on cases of estimates have been upheld ( refer Chuharmal vs CIT 172 ITR 250 (SC), Addl. CIT vs Chandrakantha and another 205 ITR 607 (MP), CIT vs Md. Warasat Hussain 171 ITR 405 (Patna), A.M. Shah & Co. vs CIT 238 ITR 415 (Guj), CIT vs Krishnawamy and Sons 210 ITR 157 (Mad). Levy of penalty will depend on the facts of the case. Here, profits have been suppressed by showing sale of milk in cash in place of sale of milk products. The profit margins in sale of milk products is higher. By claiming sale of milk, lower profits…

Punjab Sind Dairy Products P.Ltd, Mumbai vs. ACIT Cen Cir 33, Mumbai

In the result, appeal of the assessee in ITA no

Bench: Shri Pawan Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6246 & 6247/Mum/2017 (नििाारण वर्ा / Assessment Year : 2006-07 & 2007-08) बिाम/ Punjab Sind Dairy Product Acit Central Circle- P. Ltd., 33,Room No. 32(3), Ag-2 Cama Industrial Aayakar Bhavan, V. Estate, Walbhatt Road, Mumbai-400020 Goregaon (W), Mumbai- 400063 स्थायी ऱेखा सं./ Pan: Aadcp5419Q (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri. K.K. Lalkaka (Ar) Revenue By: Shri. D.G Pansari (Dr) सुनवाई की तारीख /Date Of Hearing : 16.01.2019 घोषणा की तारीख /Date Of Pronouncement : 26.03.2019 आदेश / O R D E R Per Ramit Kochar: These Two Appeals, Filed By Assessee, Being Ita No. 6246 & 6247/Mum/2017, Are Directed Against Two Separate Appellate Orders Both Dated 22.08.2017 In Appeal No. Cit(A)-53/Dccc-5(2)/It- 123/2012-13 & Cit(A)-53/Dccc-5(2)/It-124/2012-13 Respectively, Passed By Learned Commissioner Of Income Tax (Appeals)-53, Mumbai (Hereinafter Called “The Cit(A)”), For Assessment Year 2006-07 & 2007- 08 Respectively, The Appellate Proceedings Had Arisen Before Learned Cit(A) From Two Separate Penalty Orders Both Dated 29.03.2012 Passed By Learned Assessing Officer (Hereinafter Called “The Ao”) U/S 271(1)(C)

…blished mode of determination of income where books of accounts are rejected. Levy of penalty on cases of estimates have been upheld ( refer Chuharmal vs CIT 172 ITR 250 (SC), Addl. CIT vs Chandrakantha and another 205 ITR 607 (MP), CIT vs Md. Warasat Hussain 171 ITR 405 (Patna), A.M. Shah & Co. vs CIT 238 ITR 415 (Guj), CIT vs Krishnawamy and Sons 210 ITR 157 (Mad). Levy of penalty will depend on the facts of the case. Here, profits have been suppressed by showing sale of milk in cash in place of sale of milk products. The profit margins in sale of milk products is higher. By claiming sale of milk, lower profits…

S4 Interior, Mumbai vs. Assistant Commissioner of Income Tax 25(3), Mumbai

The appeal of the assessee is allowed

Bench: Shri B.R.Baskaran & Shri Ravish Soodm/S S4 Interior, Assisstant Commissioner Of Income A-301E, Sumit Samarth Tax-25(3), Arcade, Tatya Tope Nagar, Pratyakshkar Bhavan, Vs. Near Railway Station, Bandra Kurla Complex, Goregaon (West), Mumbai Mumbai- 400062 Pan – Abgfs7239E Assessee Revenue Assessee By: Shri Rajiv Khandelwal, A.R Revenue By: Shri Nishant Samaiya, D.R Date Of Hearing: 24.09.2018 Date Of Pronouncement: 26.09.2018 O R D E R Per Ravish Sood, Jm The Present Appeal Filed By The Assessee For A.Y. 2009-10 Is Directed Against The Order Passed By The Cit(A)-32, Mumbai, Which In Turn Arises From The Order Passed By The A.O Under Sec. 271(1)(C) Of The Income Tax Act, 1961 (For Short ‘Act’), Dated 23.09.2015. The Assessee Assailing The Order Of The Cit(A) Has Raised Before Us The Following Grounds Of Appeal: “1. Under The Facts & In Law, The Hon'Ble Cit(A) Has Erred In Confirming The Penalty Of Rs. 430,707/- Levied Under Section 271(1)(C) Of The Income Tax Act, 1961. 1.1 The Hon’Ble Cit(A) Erred In Confirming The Penalty Without Appreciating The Submission Made By The Appellant.

…: (i). CIT Vs. Kalindi Rail Nirman Engg. Ltd. (2014) 365 ITR 304 (Del) (ii). CIT Vs. Smt. CHandrakanta (1994) 205 ITR 607 (MP) (iii). Addl. CIT Vs. Lakshmi Industries & Cold Storage (P) Ltd. (1984) 146 ITR 492 (All) (iv). CIT Vs. Md. Warasat Hussain (1988) 171 ITR 405 (Patna) (v). A.M Shah & Co. Vs. CIT (1999) 238 ITR 415 (Guj) (vi). CIT Vs. S. Krishnaswamy & Sons (1996) 219 ITR 157 (Mad) (vii). CIT Vs. Swarup Cold Storage & General Mills (1982) 136 ITR 435 (All) (viii). CIT Vs. Chandra Vilas Hotel (2007) 291 ITR 202 (Guj) It was averred by the ld. D.R, that as the appeal of the assessee was devoid of any for…