Case Number: ITA 5549/DEL/2019
Appellant: Vivaan Infotel Pvt Ltd, New Delhi
Respondent: ITO Ward 26(4), New Delhi
Assessment Year: 2015-16
Result: Appeal Dismissed
Case Filed on: 2019-06-26
Order Type: Final Tribunal Order
Date of Order: 2023-10-30
Pronounced on: 2023-10-30
The case involves an appeal filed by Vivaan Infotel Pvt Ltd from New Delhi against the order of the Income Tax Officer (ITO) Ward 26(4), New Delhi. The appeal pertains to the assessment year 2015-16. Vivaan Infotel Pvt Ltd challenged the penalty of Rs. 6,67,421/- levied by the Assessing Officer (AO) under section 271(1)(c) of the Income Tax Act, 1961 (the “Act”) for filing inaccurate particulars of income.
The appeal was filed by Vivaan Infotel Pvt Ltd against the order of the learned Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi, dated 29.04.2019. The case was initially filed to challenge the penalty imposed for alleged inaccurate particulars of income filed by the company for the assessment year 2015-16.
The case was heard before the Income Tax Appellate Tribunal (Delhi Bench ‘F’) in New Delhi on 29th October 2023. The bench comprised Dr. B.R.R. Kumar, Accountant Member, and Ms. Astha Chandra, Judicial Member. The hearing was conducted through video conferencing.
Vivaan Infotel Pvt Ltd filed its return for AY 2015-16 on 26.09.2015 declaring income of Rs. 2,86,740/-. A revised return was also filed on 06.01.2016 declaring income of Rs. 1,17,740/-. The case was taken up for scrutiny through CASS. During assessment proceedings, the AO found that the assessee had made purchases from eight parties. Summons issued to seven out of the eight parties were returned undelivered, and the assessee could not produce the parties for examination. The VAT Department reported that the assessee had made bogus purchases from four parties and had discrepancies in cash and stock. The AO rejected the books of accounts under section 145(3) of the Act and applied a net profit rate of 5% on declared sales, resulting in an addition of Rs. 21,59,940/- to the income of the assessee. The addition was agreed to by the assessee, and the AO imposed a penalty of Rs. 6,67,421/- under section 271(1)(c) of the Act for filing inaccurate particulars of income.
The assessee argued that the penalty was wrongly imposed and that it had submitted complete stock registers and purchase and sales registers. The AO and CIT(A) found that the purchases were unverifiable and bogus, leading to the penalty. The CIT(A) upheld the penalty, stating that the assessee failed to substantiate its claims and that the penalty was justified.
After considering the submissions of the Ld. Senior Departmental Representative (DR) and reviewing the record, the Tribunal upheld the order of the CIT(A) and dismissed the appeal of Vivaan Infotel Pvt Ltd. The Tribunal found that the assessee had made purchases from unregistered dealers which were not verifiable, and the books of accounts were rejected based on numerous defects. The penalty imposed by the AO and upheld by the CIT(A) was found to be justified.
The Tribunal dismissed the appeal filed by Vivaan Infotel Pvt Ltd, finding that the penalty imposed for filing inaccurate particulars of income was justified. The final order was pronounced on 30th October 2023 by Dr. B.R.R. Kumar, Accountant Member, and Ms. Astha Chandra, Judicial Member.
Members Present:
Dr. B.R.R. Kumar, Accountant Member
Ms. Astha Chandra, Judicial Member
Document Reference:
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A) New Delhi
5. DR: ITAT
ASSISTANT REGISTRAR, ITAT New Delhi
Appeal by Vivaan Infotel Pvt Ltd, New Delhi against ITO Ward 26(4) in ITA No. 5549/DEL/2019
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