This appeal is filed by the Revenue against the order of Learned Commissioner of Income Tax (Appeals)–12, Mumbai [hereinafter in short“Ld.CIT(A)”] dated 27.06.2018 for the A.Y. 2011-12 in deleting the penalty levied u/s. 271(1)(c) of the Act made by the Assessing Officer.
IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT)
“C” BENCH, MUMBAI
BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND
SHRI N.K. PRADHAN, HON'BLE ACCOUNTANT MEMBER
ITA NO. 5389/MUM/2018 (A.Y: 2011-12)
ACIT – Circle - 6(2)(1)
Room No. 504, 5th Floor
Mumbai – 400 020
M/s. Creative Electrical Innovative Pvt. Ltd.,
Unit No. 12, 18B, Hammer Smith Indl. Estate
Pathare Marg, Off. Sitala Devi Temple Road
Mahim (W), Mumbai - 400016
Assessee by : None
Department by : Ms. Shreekala Pardeshi
Date of Hearing : 11.02.2021
Date of Pronouncement : 11.02.2021
O R D E R
PER C.N. PRASAD (JM)
1. This appeal is filed by the Revenue against the order of Learned Commissioner of Income Tax (Appeals)–12, Mumbai [hereinafter in short“Ld.CIT(A)”] dated 27.06.2018 for the A.Y. 2011-12 in deleting the penalty levied u/s. 271(1)(c) of the Act made by the Assessing Officer.
2. Briefly stated the facts are that, assessee firm engaged in the business of executing electrical contracts and filed return of income on28.09.2011 declaring income of ₹.9,16,510/- for the A.Y. 2011-12.Assessment was reopened u/s. 147 of the Act and re-assessment wascompleted on 30.09.2016 u/s. 143(3) r.w.s 147 of the Act determiningthe income at 10,51,910/-. While completing the reassessment theAssessing Officer treated purchases of ₹.1,25,374/- made from M/s. VitrajTraders Impex as non-genuine and ₹.10,030/- towards unexplainedcommission expenditure on bogus purchases for the A.Y. 2011-12 on thebasis of the information received from DGIT (Inv.,), Mumbai that assesseehas received accommodation entries from M/s. Vitraj Traders Impexwithout making any purchases but made purchases only in gray market.The Assessing Officer treated such purchases from M/s. Vitraj TradersImpex as non-genuine as the assessee could not produce the party andalso could not establish the movement of goods. However, the AssessingOfficer estimated the profit element from non-genuine purchases at12.5% and brought to tax an amount of ₹.1,25,374/- out of purchases of ₹.10,02,988/-.
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