DCIT, CENTRAL-1, INDORE, INDORE V. SMT. JYOTI BALA GARG, INDORE

MA 6/IND/2025

AI Insights

The case involves the Deputy Commissioner of Income Tax, Central Circle-1, Indore (Revenue) against Smt. Jyoti Bala Garg (Respondent) concerning the assessment years 2012-13 to 2014-15. The Revenue filed appeals against the order of the Commissioner of Income Tax (Appeals) which had deleted the additions made by the Assessing Officer under sections 143(3) read with section 153A of the Income Tax Act, 1961, following a search and seizure operation. The ITAT initially dismissed the Revenue's appeals due to the low tax effect, as per the CBDT circulars. However, upon the Revenue's Miscellaneous Application citing the exceptional circumstances of organized tax evasion through accommodation entries, the ITAT revisited and amended its earlier decision, restoring the appeals for a detailed examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716996 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 28-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHISH PORWAL
• Assessee Lawyers: S ASHISH GOYAL; N. D
• Keywords: Set aside; Salary income; Tax effect; Search and seizure; Accommodation entries; Penny stocks; Bogus
• Section: 143(3); 132; 153A

Judgement Text

" Page 1 of 8 आयकर अपीलीय अिधकरण, इंदौर Ɋायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M JOSHI, JUDICIAL MEMBER M.A No.06 to 08/Ind/2025 (AYs: 2012-13 to 2014-15) DCIT, Central-1, Indore बनाम/ Vs. Jyoti Bala Garg, 255 M.G. Road, Bada Ganpati, Indore (PAN:ABHPA2533N) (Revenue) (Respondent) Assessee by S/Shri Ashish Goyal & N.D. Patwa, ARs Revenue by Shri Ashish Porwal, DR Date of Hearing 08.08.2025 Date of Pronouncement 18.08.2025 आदेश / O R D E R Per Paresh M Joshi, J.M: The revenue has filed a Miscellaneous Applications U/s 254(2) of the Income Tax Act, 1961 (hereinafter referred to as the “Act” for brevity) which bears MA Nos. 6 to 8/Ind/2025 wherein they have pointed out certain mistake in the order of ITAT, Indore Bench dated 23.09.2024 in ITA No.52 to 54/Ind/2024 by virtue of which Revenue’s appeals were dismissed on account of low tax effect which was below 60 lakh basis CBDT Circular No.09/2024 dated 17.09.2024 and so also Circular No.5/2024 dated Printed from counselvise.com DCIT Central-1 v/s Jyoti Bala Garg MA Nos.06 to 08/Ind/2025 - A.Ys.2012-13 to 2014-15 Page 2 of 8 15.03.2024 whereby monetary limit were subject to certain exceptions contained in para 3.1 and 3.2. The copy of the said M.A is reproduced below as under:- MA Nos. 6 to 8/Ind/2025 Name of the Assessee : Smt. Jyoti Bala Garg, 255, MG Road, Bada Ganpati, Indore Status : Indl PAN : ABHPA2533N A.Ys : 2012-13, 2013-14 and 2014-15 Miscellaneous Application u/s 254(2) of the Income Tax Act, 1961 The assessee is an Individual who has mainly derived Income from salary from M/s Unique Durobuild Pvt. Ltd., M/s Roar Propbuild Pvt. Ltd., M/s Elan Propbuild Pvt. Ltd., M/s Bluebell Promoters Pvt. Ltd. and Shreenath Multitrade Pvt. Ltd., Rental income and interest (income from other sources). A Search and seizure operation u/s 132 of the Income Tax Act, 1961 (hereinafter referred to as \"The Act\") was carried out on 12/01/2021 at various premises of concerns/entities/associates of JRG Group by the Investigation Wing, Indore. During the said search operation, the assessee was also covered u/s 132 of the Act. Assessment order u/s 143(3) r.w.s. 153A of the Act was passed for the A.Ys. 2011-12 to 2020-21 and u/s 143(3) of the Act for the A.Y. 2021-22. The return income & assessed income for the A.Ys. 2012-13 to 2021-22 is as under: A.Y. Return Income (in Rs.) Assessed Income (in Rs.) 2011-12 4,07,640/- Rs. 7,67,11,350/- 2012-13 Rs. 10,86,150/- Rs. 1,60,98,830/- 2013-14 Rs. 10,47,400/- Rs. 1,06,68,060/ 2014-15 Rs. 6,70,260/- Rs. 1,05,58,730/- 2015-16 Rs. 11,41,560/- Rs. 54,71,780/- 2016-17 Rs. 7,94,990/- Rs. 9,10,650/- Printed from counselvise.com DCIT Central-1 v/s Jyoti Bala Garg MA Nos.06 to 08/Ind/2025 - A.Ys.2012-13 to 2014-15 Page 3 of 8 2017-18 Rs. 17,47,980/- Rs. 18,70,780/- 2018-19 Rs. 16,63,450/- Rs. 40,01,520/- 2019-20 Rs. 19,35,550/- Rs. 22,52,820/- 2020-21 Rs. 19,42,590/- Rs. 22,88,420/- 2021-22 Rs. 13,26,180/- Rs. 47,65,060/- 2. Aggrieved with the order the assessee has preferred appeal before the Ld. CIT A). The Ld. CIT (A) passed the order of Appeal No. CIT(A)-3, Bhopal/IT-10094/2010-11, 0123/2011-12, 10301/2012-13 and 10472/2013-14 on 20/02/2024. The Ld. CIT(A) found that the AO was not justified in assuming Jurisdiction over the extended assessment year of search period i.e. 7th to 10th year and making Impugned additions. The Ld. CIT(A) deleted the entire additions made In A.Ys. 2011-12 to 2014-15. The Ld. CIT(A) partly allowed the appeal of the assessee. Against the order of Ld. CIT(A), in appeal no. IT- 10094/2010-11,10123/2011-12,10301/2012-13 and 10472/2013- 14 on 20/02/2024, the Revenue filed second appeal before the ITAT, Indore Bench Indore. 3-The Hon'ble ITAT vide order dated 23.09.2024 decided the appeal holding that: 5. हमने दोनɉ और क े ͪव ɮवान ĤǓतǓनͬधयɉ क े Ǔनवेदनɉ पर ͪवचार ͩकया है तथा अͧभलेख पर उपलÞध सामĒी का अÚययन ͩकया है। हमने पाया ͩक क Ʌ ġȣय Ĥ×य¢ कर बोड[ ɮवारा पǐरपğ सं. 9/2024 Ǒदनांक 17.09.2024 क े ɮवारा अͬधकरण क े सम¢ अपील दाͨखल करने हेतु अंतĒ[èत ͪवǓनǑहत कर सीमा को संशोͬधत कर 60 लाख ͩकया गया है। हमने पाया ͩक आ¢ेͪपत Ĥकरणɉ मɅ ͪववादाधीन मु ɮदɉ मɅ कर Ĥभाव Đमशः ǽ. 46,38,918/-, ǽ. 29,72,783/- तथा ǽ. 33,23,732/- है जो सीबीडीटȣ ɮवारा अͬधकरण क े सम¢ अपील दाͨखल करने हेतु ͪवǓनǑहत सीमा ǽ. 60 लाख से कम है। अतः पǐरपğ क े अनुसार राजèव को इन अपीलɉ पर दबाव डालना अपेͯ¢त नहȣं है। तɮ नुसार ͪवभाग ɮवारा दाͨखल वत[मान अपीले खाǐरज करने योÊय है। अतः, हम राजèव ɮवारा दाͨखल अपीलɉ को Ĥकरण क े गुणागुण पर ͪवचार ͩकए ǒबना आरंभतः खाǐरज करते हɇ। यɮयͪप, Ûयायोͬचत Ǻिçट से यहाँ यह èपçट ͩकया Printed from counselvise.com DCIT Central-1 v/s Jyoti Bala Garg MA Nos.06 to 08/Ind/2025 - A.Ys.2012-13 to 2014-15 Page 4 of 8 जाता है ͩक राजèव ͪवͪवध आवेदन (एमए) दाͨखल करने क े ͧलए èवतंğ है यǑद ये Ĥकरण अपवाद खंड (exception clause) क े अधीन आते हɇ। 6. पǐरणामतः, राजèव कȧ अपीले खाǐरज कȧ जाती हɇ। 4 Accordingly, the Hon'ble ITAT has decided the appeal stating that tax effect is less than 60 lacs in the case and held that appeal of the Department is dismissed without considering the issue on merits. However, Hon'ble ITAT has further stated that the Department is free to file Miscellaneous Application against the order if the case is covered under an exceptional clause. 5. In the above regard, it is submitted: a) That, for all AYs 2012-13 to 2014-15, the case falls under the exception clause(s), including point 3.1(h) of the CBDT's Circular No. 05/2024 dated 15.03.2024 as the tax evasion in the case is made through accommodation entries. b) Point 3.1 (h) of the aforesaid CBDT Circular reads as under: \"Cases involving organized tax evasion including cases of bogus capital gain / loss through penny stocks and cases of accommodation entries\" 1 c) That, for all AYs 2012-13 to 2014-15, the case falls under the exception clause(s), especially point 3.1(h) of the CBDT's Circular No. 05/2024 dated 15.03.2024, is evident from the Questions / Grounds filed before the Hon'ble ITAT as well as the Assessment Order. The orders us/ 253(2) for the three AYs 2012-13 to 2014- 15 are herewith annexed with this MA, which clearly evidences this aspect. Same is also evidenced from the perusal of the Assessment Order. d) That, at the time of filing of Department's appeal before the Hon'ble ITAT, the tax effect was below the relevant monetary limit for filing of appeal before ITAT for AY 2012-13 to2014-15. Printed from counselvise.com DCIT Central-1 v/s Jyoti Bala Garg MA Nos.06 to 08/Ind/2025 - A.Ys.2012-13 to 2014-15 Page 5 of 8 e) That, for all AYs2012-13 to 2014-15, It was clearly mentioned in the order u/s 253(2) of the Income Tax Act, 1961 dated 22/04/2024 that 'Certified that this case falls under the exception clause(s), Including point 3.1(h) of the CBDT's Circular No. 05/2024 dated 15.03.2024. This is because the tax evasion in the case is made through accommodation entries. f) The Hon'ble ITAT dismissed the appeal of the department stating that the tax effect was less than 60 lacs. Accordingly, the appeal of the department has been dismissed without discussion and decision on merit. 6. Accordingly, in view of the facts on record, mainly that the case falls under the exception clause(s), including point 3.1(h) of the CBDT's Circular No. 05/2024 dated 15.03.2024 as the tax evasion in the case is made through accommodation entries, it is prayed that there is mistake apparent from the record. 7. Therefore, it is prayed that the Hon'ble ITAT may kindly decide the Appeal on merits. Sd/- (Rajesh Kumar Jha) Dy. Commissioner of Income tax Central Circle-1, Indore 2. The relevant portion of ITAT order dated 23.09.2024 is reproduced below:- 5. हमने दोनɉ और क े ͪव ɮवान ĤǓतǓनͬधयɉ क े Ǔनवेदनɉ पर ͪवचार ͩकया है तथा अͧभलेख पर उपलÞध सामĒी का अÚययन ͩकया है। हमने पाया ͩक क Ʌ ġȣय Ĥ×य¢ कर बोड[ ɮवारा पǐरपğ सं. 9/2024 Ǒदनांक 17.09.2024 क े ɮवारा अͬधकरण क े सम¢ अपील दाͨखल करने हेतु अंतĒ[èत ͪवǓनǑहत कर सीमा को संशोͬधत कर 60 लाख ͩकया गया है। हमने पाया ͩक आ¢ेͪपत Ĥकरणɉ मɅ ͪववादाधीन मु ɮदɉ मɅ कर Ĥभाव Đमशः ǽ. 46,38,918/-, ǽ. 29,72,783/- तथा ǽ. 33,23,732/- है जो सीबीडीटȣ ɮवारा अͬधकरण क े सम¢ अपील दाͨखल करने हेतु ͪवǓनǑहत सीमा ǽ. 60 लाख से कम है। अतः पǐरपğ क े अनुसार राजèव को इन अपीलɉ पर दबाव डालना अपेͯ¢त नहȣं है। तɮ नुसार ͪवभाग ɮवारा दाͨखल वत[मान अपीले खाǐरज करने योÊय है। अतः, हम राजèव ɮवारा दाͨखल अपीलɉ को Ĥकरण क े गुणागुण पर ͪवचार ͩकए ǒबना आरंभतः खाǐरज करते हɇ। यɮयͪप, Ûयायोͬचत Ǻिçट Printed from counselvise.com DCIT Central-1 v/s Jyoti Bala Garg MA Nos.06 to 08/Ind/2025 - A.Ys.2012-13 to 2014-15 Page 6 of 8 से यहाँ यह èपçट ͩकया जाता है ͩक राजèव ͪवͪवध आवेदन (एमए) दाͨखल करने क े ͧलए èवतंğ है यǑद ये Ĥकरण अपवाद खंड (exception clause) क े अधीन आते हɇ। 6. पǐरणामतः, राजèव कȧ अपीले खाǐरज कȧ जाती हɇ। 3. The hearing in the above Miscellaneous Applications took place before this Tribunal on 08.08.2025 when Ld. DR appeared for and on behalf of the Revenue and brought to our notice the above mentioned two circulars of CBDT (supra) and contended that issues in the present appeals falls under exception clause 3.1 (h) of CBDT circular No.05/2024 dated 15.03.2024 (supra) which reads as under:- “Cases involving organised tax evasion including cases of bogus capital gain/loss through penny stocks and cases of accommodation entries”. Reliance was placed on grounds of appeal raised in Form No.36 by the Revenue and so also on the assessment orders of Ld. A.O to demonstrate that issues covered by the appeals pertains to accommodation entries which the assessee had obtained. Hence it was prayed that by virtue of exception as contained in para 3.1(h) of CBDT Circular No.05/2024 dated 15.03.2024 the mistake is apparent and therefore this Tribunal Printed from counselvise.com DCIT Central-1 v/s Jyoti Bala Garg MA Nos.06 to 08/Ind/2025 - A.Ys.2012-13 to 2014-15 Page 7 of 8 should amend/modify its order and restore the appeals. The Ld. AR appearing for assessee fairly concedes the point made by Ld. DR and concurred with his views. 4. In the premises aforesaid we find that the revenue has made out a case of “mistake apparent from record” perse. We also find appeals to be falling under exception clause 3.1(h) of DBDT Circular No.5/2024 dated 15.03.2024. Accordingly we amend the order dated 23.09.2024 of ITAT and as a consequence thereof, we set aside the ITAT order dated 23.09.2024 and restore the aforesaid appeals bearing ITA Nos. 52 to 54/Ind/2024 for hearing and final disposal. The registry is directed to give fresh date to the parties as and by way of fresh notice. 5. In result, Miscellaneous Application is allowed, with no order as to cost. Order pronounced in open court on 18.08.2025. Sd/- Sd/- (B.M. BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक / Dated : 18.08.2025 Dev/Sr. PS Printed from counselvise.com DCIT Central-1 v/s Jyoti Bala Garg MA Nos.06 to 08/Ind/2025 - A.Ys.2012-13 to 2014-15 Page 8 of 8 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "