Rustic Highlands Enterprises, Mumbai vs Department Of Income Tax

आयकर अपील य अ धकरण, मुंबई यायपीठ "डी " मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL" D" BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN (AM) AND AMIT SHUKLA, (JM) सव ी बी.आर.बा करन, लेखा सद य एवं अ मत शु ला, या यक सद य के सम

आयकर अपील सं./I.T.A. No.1257/Mum/2013 ( नधारण वष / Assessment Year :2007-08)

Income Tax Officer, 12(3)(2), बनाम/ M/s Rustic Highlands Enterprises Room No.114, 311-312, Dalamal Tower, 221, Vs. Aayakar Bhavan, M K Road, Nariman Point, Mumbai-400021 Mumbai-400020 (अपीलाथ /Appellant) .. ( यथ / Respondent)

थायी ले ख ा सं . /जीआइआर सं . /PAN/GIR No. :AAAFR2389B

अपीलाथ ओर से / Appellant by Shri Love Kumar यथ क ओर से/Respondent by Shri Prakash K Jotwani

सुनवाई क तार ख / Date of Hearing : 19.3.2015 घोषणा क तार ख /Date of Pronouncement : 17.4.2015

आदे श / O R D E R

PER B.R. BASKARAN (AM)

The appeal filed by the Revenue is directed against the order dated 26.11.2012 passed by Ld CIT(A)-10, Mumbai, wherein the Ld CIT(A) has deleted the penalty levied by the AO u/s 271 (1)(c) of the Income Tax Act, 1961 (the Act).

2. We heard the parties and perused the record. The assessee is engaged in the business of development and sale of land by demarking the same into smaller plots. During the course of assessment proceedings, the AO noticed that the assessee had paid a sum of Rs.2,68,018/- to an Architect and a sum of Rs.7,50,000/- to an Electrical Contractor, without deducting tax at source u/s 194J/194C of the Act. Hence the AO disallowed the above said amounts by invoking the provisions of section 40(a)(ia) of the Act. The AO also levied a 2 I . T . A . N o . 1 2 5 7 / Mu m / 2 0 1 3

penalty on the above said disallowance u/s 271(1)(c) of the Act. The assessee challenged the penalty order by filing the appeal before the ld.CIT(A), who deleted the same by holding that the disallowance made u/s 40(a)(ia) cannot be treated a case of concealment of particular of income or furnishing inaccurate particulars of income. Aggrieved, by the decision of the ld.CIT(A), the Revenue has filed this appeal before us.

3. We notice that the assessee has placed reliance before the ld. CIT(A) on the decisions rendered by a co-ordinate Bench of the Tribunal in the case of ACIT V/s Bhoruka Logistics (P) Ltd and also upon the decision rendered by the Hon'ble Supreme Court in the case of Reliance Petroproducts (322 ITR 158).

4. Before us, the ld.counsel for the assessee vehemently contended that the assessee has neither concealed any particulars of income nor furnished inaccurate particulars of income and further disallowance made u/s 40(a)(ia) would not attract the penalty u/s 271(1)(c) of the Act. In support of his contention, the ld. AR placed reliance on the following decisions rendered by the co-ordinate Benches of the Tribunal :

S.No. ITA No. Name of the assessee Bench/Date of order 1 6306/Mum/2011 Satyajeet Movies Pvt.Ltd. Ë- 21.02.2014 2 6684/Mum/2012 Rushi Builders and Developers D-4.3.2015 3 2153/Ahd/2010 M/s Electro Power Engineers D-5.7.2013 4 44/Ind/2013 Roop Singh Bagga, Indore Indore-31.5.2012 5 4549/Mum/2013 M/s Shinhan Bank, E-23.9.2014

5. Though the ld. DR strongly supported the penalty order of the AO, yet we notice that various Benches of the Tribunal are consistently taking the view that the disallowance made u/s 40(a)(ia) of the Act would not result in concealment of particulars of income or furnishing of inaccurate particulars of income within the meaning of the provisions of sec. 271(1)(c). Since the ld. CIT(A) has taken the view in accordance with the views taken by co-ordinate 3 I . T . A . N o . 1 2 5 7 / Mu m / 2 0 1 3

Benches of the Tribunal on this issue, we do not find any reason to interfere with his order.

6. In the result, the appeal filed by the Revenue is dismissed. The above order was pronounced in the open court on 17th Apr, 2015.

घोषणा खल ु े यायालय म दनांकः 17th Apr, 2015 को क गई ।

Sd sd

(अ मत शु ला / AMIT SHUKLA) (बी.आर.बा करन / B.R. BASKARAN) या यक सद य / JUDICIAL MEMBER लेखा सद य / ACCOUNTANT MEMBER

मुंबई Mumbai:17th April, 2015.

व. न.स./ SRL , Sr. PS

आदे श क त ल प अ े षत/Copy of the Order forwarded to :

1. अपीलाथ / The Appellant

2. यथ / The Respondent.

3. आयकर आयु त(अपील) / The CIT(A)- concerned

4. आयकर आयु त / CIT concerned

5. वभागीय त न ध, आयकर अपील य अ धकरण, मुंबई / DR, ITAT, Mumbai concerned

6. गाड फाईल / Guard file.

आदे शानुसार/ BY ORDER, True copy सहायक पंजीकार (Asstt. Registrar) आयकर अपील य अ धकरण, मुंबई /ITAT, Mumbai