MOHAN KAMAT HUF, KARTA, MUMBAI V. ITO 15(2)(4), MUMBAI

CO 217/MUM/2015

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2381 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 21-09-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2005-2006
• Appeal Filed On: 23-12-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: RANDHIR GUPTA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.C. SHARMA(AM) AND SHRI SANDEEP GOSAIN (JM) ITA NO. 4548/MUM/2014 ASSESSMENT YEAR: 2005-06 ITO 15(2)(4) VS. MOHAN R. KAMAT (HUF) MATRU MANDIR, R.NO. 111 701 ZANIA APARTMENT, NAV AGAON GRANT RD. (W) SANTOSH MATA MARG, DAHISAR WEST MUMBAI 400007 MUMBAI - 400068 PAN NO. AAHHM4000R & CROSS OBJECTION NO. 217/MUM/2015 (IN ITA NO. 4548/MUM/2014) ASSESSMENT YEAR: 2005-06 MOHAN R. KAMAT (HUF) VS. ITO 15(2)(4) 70 ZANIA APARTMENT, NAVAGAON MATRU MANDIR, R.NO. 111 SANTOSH MATA MARG, DAHISAR WEST GRANT RD. (W) MUMBAI - 400068 MUMBAI 400007 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. RANDHIR GUPTA RESPONDENT BY : NONE DATE OF HEARING : 28/07/201 6 DATE OF PRONOUNCEMENT : 21/09/2016 O R D ER PER SANDEEP GOSAIN, JM : ONE APPEAL IS FILED BY REVENUE AND THE CROSS OBJECT ION HAS BEEN FILED BY ASSESSEE ARE ARISING FROM THE ORDER OF COM MISSIONER OF INCOME TAX (APPEALS)-26, MUMBAI, DATED 29.04.2013 FOR A.Y. 200 5-06. 2. IN ITA NO.4548/MUM/2014, THE REVENUE HAS TAKEN F OLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO COMPLETE THE ASSESS MENT BY WAY OF CONSIDERING THE PURCHASE VALUE OF SHARES IGNORING T HE FACTS THAT THE ASSESSEE HAS MADE THE TRANSACTION THROUGH M/S MAHAS AGAR SECURITIES PVT. LTD. WHO INDULGED IN GIVING THE BOGUS ENTRIES AND A LSO THE ASSESSEE HAS FAILED TO PROVE THE GENUINENESS OF THE TRANSACTION BECAUSE NOT A SINGLE PURCHASE HAS BEEN FOUND REFLECTED IN BANK BOOK / PA SS BOOK. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ORDER IS PERVERSE IN FACT BY WAY OF NOT CONS IDERING THE FACTS MENTIONED IN THE ASSESSMENT ORDER AS WELL AS THE IN FORMATION PROVIDED BY THE INVESTIGATION WING ?. 3. BEFORE US, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCU LAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTAT IVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIB ED BY THE AFORESAID CBDT CIRCULAR. 3.1 WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUND OF APPEAL RAISED BY THE REVENUE, WE PRIMA-FACIE FIND THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAX ES (CBDT) DATED 10.12.2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 L ACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT TH AT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRAT E THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFI ED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ARE OF THE VIEW THAT TH E MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBD T CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LO W TAX EFFECT. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTAT ION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT C IRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. IN SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WIT HOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. 5. WHEN REVENUES APPEAL IS DISMISSED, CROSS OBJEC TION ARISING OUT OF SAME, BECOME INFRUCTUOUS. SO, SAME IS DISMISSED. 6. IN THE RESULT, APPEAL FILED BY REVENUE AND CROSS OBJECTION FILED BY ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21/09/2016. SD/- SD/- (R.C. SHARMA) (SANDE EP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 21/09/2016 AG (ON TOUR) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY O RDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI