MEHUL KAKKA, MUMBAI v. DCIT 19(2), MUMBAI

ITA 1641/MUM/2009 | 2005-2006
Pronouncement Date: 25-02-2010 | Result: Dismissed

Appeal Details

RSA Number 164119914 RSA 2009
Assessee PAN AKPPK2349P
Bench Mumbai
Appeal Number ITA 1641/MUM/2009
Duration Of Justice 11 month(s) 14 day(s)
Appellant MEHUL KAKKA, MUMBAI
Respondent DCIT 19(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 25-02-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 25-02-2010
Assessment Year 2005-2006
Appeal Filed On 12-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI R.S.PADVEKAR JM ITA NO.1641/MUM/2009 : ASST .YEAR 2005-2006 SHRI MEHUL KAKKA 6 NAVJIVAN BUILDING 17/1 DATTATRAYA ROAD SANTACRUZ (W) MUMBAI 400 054. PA NO.AKPPK2349P VS. THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 19 (2) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.C.JAIN RESPONDENT BY : S/SHRI L.K.AGRAWAL S.S.RANA & PITA MBAR DAS O R D E R PER : R.S.SYAL AM : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 12.1.2009 R EDUCING THE PENALTY IMPOSED BY THE ASSESSING OFFICER U/S.271(1)(C) OF T HE ACT IN RELATION TO THE ASSESSMENT YEAR 2005-2006. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE SHOWED PROFESSIONAL INCOME COMPRISING OF BROKERAGE FROM MUTUAL FUND AT RS.1 65 298. ON THE BASIS OF INFORMATION RECEIVED U/S.133(6) FROM VARIOUS MUTUAL FUNDS THE ASSESSING OFFICER OBSERVED THAT THE GROSS BROKERAGE RECEIVED BY THE A SSESSEE WAS TO THE EXTENT OF RS.59.21 LAKHS AS AGAINST RS.1.65 LAKHS SHOWN BY TH E ASSESSEE IN THE RETURN OF INCOME. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE SOUGHT TO REVISE RETURN ON 6.12.2007 OFFERING ADDITIONAL INCOME OF R S.6 03 506. THE A.O. DID NOT ACCEPT THE REVISION OF INCOME ON THE GROUND THAT TH E TIME LIMIT FOR FILING THE REVISED RETURN U/S.139(5) HAD EXPIRED. INVOKING THE PROVIS IONS OF SECTION 145(3) THE A.O. ESTIMATED THE GROSS PROFIT OF THE ASSESSEE AT THE R ATE OF 25% ON THE BASIS OF PROFITS SHOWN BY HIM FOR ASSESSMENT YEARS 2006-2007 AND 200 7-2008. THE NET INCOME WAS THEREFORE ADOPTED AT RS.16.39 LAKHS BEING 25% O F RS.65.57 LAKHS. DURING THE PENALTY PROCEEDINGS THE ASSESSEE RAISED A PLEA THAT THIS WAS THE FIRST YEAR OF HIS BUSINESS AND THE ASSESSEE COULD NOT DEVOTE TIME FOR ACCOUNTING MATTERS. NOT ITA NO.1641/MUM/2009 SHRI MEHUL KAKKA. 2 CONVINCED THE ASSESSING OFFICER IMPOSED PENALTY AT THE RATE OF 200% OF THE TAX SOUGHT TO BE EVADED AT RS.10 56 242. THE LEARNED CI T(A) AGREED IN PRINCIPLE WITH THE VIEW TAKEN BY THE ASSESSING OFFICER THAT THE AS SESSEE WAS CAUGHT WITHIN THE MISCHIEF OF SECTION 271(1)(C). HE HOWEVER REDUCED T HE PENALTY TO 100% INSTEAD OF 200%. THE ASSESSEE IS IN APPEAL BEFORE US. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD WE FIND THAT IT IS A CLEAR CUT CASE OF THE A SSESSEE CONCEALING HIS INCOME INASMUCH AS HE DID NOT DISCLOSE SUBSTANTIAL PART OF HIS INCOME FROM MUTUAL FUNDS RECORDED IN THREE BANK ACCOUNTS. IT WAS ONLY ON THE BASIS OF INFORMATION RECEIVED BY THE A.O. U/S.133(6) THAT THE CONCEALMENT OF INCO ME DONE BY THE ASSESSEE CAME TO THE LIGHT. THE FILING OF REVISED RETURN BY THE A SSESSEE WHEN THIS FACT WAS DETECTED BY THE ASSESSING OFFICER COULD NOT HELP T HE ASSESSEE. MOREOVER SUCH RETURN WAS BEYOND THE TIME LIMIT PRESCRIBED U/S.139 (5). SUCH REVISED RETURN WAS THEREFORE RIGHTLY EXCLUDED. THE FACT REMAINS THAT THE ASSESSEE DID CONCEAL HIS INCOME WHICH CAME TO THE NOTICE OF THE ASSESSING O FFICER BY WAY OF INFORMATION RECEIVED U/S.133(6). IN OUR CONSIDERED OPINION THER E IS NO MERIT IN THE SUBMISSION OF THE LEARNED A.R. THAT THE ASSESSEE WAS UNAWARE O F THE ACCOUNTING MATTERS AND IT WAS HIS FIRST YEAR ETC. IN VIEW OF THE FACT THAT TH E ASSESSEE CONCEALED HIS INCOME FROM THE ORIGINAL RETURN FILED U/S 139(1) WE ARE O F THE CONSIDERED VIEW THAT THE PENALTY IS EXIGIBLE. WE THEREFORE UPHOLD THE IMPU GNED ORDER. 4. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 25 TH DAY OF FEBRUARY 2010. SD/- SD/- ( R.S.PADVEKAR ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI : 25 TH FEBRUARY 2010. DEVDAS* ITA NO.1641/MUM/2009 SHRI MEHUL KAKKA. 3 COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) XIX MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.