DY COMMISSIONER OF INCOME TAX 5(2)(1), MUMBAI V. MANLIFE TRADING PVT LTD, MUMBAI

ITA 5355/MUM/2024

AI Insights

The case involves an appeal by the revenue against the order of the Commissioner of Income Tax Appeals \\u2013 National Faceless Appeal Center (NFAC), Delhi, which had deleted additions made under sections 68 and 69C of the Income Tax Act by the Assessing Officer (AO) for the Assessment Year 2010-11. The additions were initially made on the grounds of unexplained cash credit and unexplained expenditure related to share premium transactions, which were alleged to be non-genuine and involved entry providers. The CIT(A) found that the assessee had provided sufficient details to justify the deletions. However, the revenue contended that the transactions were with entities lacking creditworthiness and involved accommodation entries. The tribunal did not proceed with the substantive issues due to the monetary limit on tax effect for appeals.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33767 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 28-11-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 11-10-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESHWARI MENON
• Keywords: Set aside; Unexplained cash credit; Unexplained expenditure; Tax effect

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “F”, MUMBAI BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA No.5355/M/2024 Assessment Year: 2010-11 DCIT Circle – 5(2)(1), Mumbai Room No. 571, 5th Floor, Aayakar Bhavan, M.K. Road, Mumbai - 400020 Vs. M/s. Manlife Trading Pvt. Limited. 9, Ground Floor, 12/22, Bhabha Chawl, Khetwadi, 13th Lane, Girgaon, Mumbai – 400004 PAN: AAECM5805C (Appellant) (Respondent) Present for: Assessee by : None Revenue by : Ms. Rajeshwari Menon, SR DR Date of Hearing : 28.11.2024 Date of Pronouncement : 28.11.2024 O R D E R Per : OM PRAKASH KANT, Accountant Member: This appeal has been preferred by the revenue against the order dated 28/08/2024 passed by the Ld. Commissioner of Income Tax Appeals – National Faceless Appeal Center (NFAC), Delhi, (in short ‘the Ld. CIT(A)’) for Assessment Year 2010-11. The relevant grounds raised by the revenue are reproduced as under: ITA No.5355/M/2024 M/s. Manlife Trading Pvt. Limited. 2 “1. \"Whether on the facts and in the circumstances of the case and in law, the Ld.CIT (A) was justified in deleting the addition made u/s 68 of the LT. Act observing that the assessee has submitted sufficient details ignoring the fact that the addition was made as Unexplained Cash Credit for an accommodation entry in the form of Share Premium obtained by the assessee from an entity having no creditworthiness and through a non-genuine transaction which was clearly established in the information provided by the Investigation wing and firmly confirmed in the assessment proceeding.\" 2. \"Whether on the facts and in the circumstances of the case and in law, the Ld.CIT (A) was justified in deleting the addition made u/s 69C of the I.T. Act observing that the assessee has explained the share premium transaction and therefore the addition on unexplained expenditure becomes infructuous ignoring the fact that the assessee had incurred unexplained expenses in the form of transaction charges/commission/ brokerage paid to the entry providers and had not accounted these expenses in its books of expenses.\" 3. The appellant prays that the order of the CIT(A) on the grounds be set aside and confirm the order of the AO. 4. The appellant craves leave to add, amend or alter all or any of the grounds of appeal.” 2. At the outset the Ld. Department Representative submitted that tax effect involved in the appeal is below the threshold limit for filing appeal to the Income Tax Appellate Tribunal has prescribed by the central board of direct taxes issued vide circular no. 9/2024 vide dated 17/09/2024 wherein limit of Rs. 60,00,000/- has been prescribed for filing appeal before the Income Tax Appellate Tribunal. Since the tax effect in the appeal is of Rs. 30,82,275/-, which being below the prescribed monetary limit of Rs. 60,00,000/- and therefore, this appeal might be treated as withdrawn. ITA No.5355/M/2024 M/s. Manlife Trading Pvt. Limited. 3 3. We have heard rival submission of the parties and perused the relevant material on record the tax effect in the appeal of the revenue being below the prescribed monetary limit of 60,00,000/- for filing appeal to the Income Tax Appellate Tribunal and therefore, same is dismissed as withdrawn. However, the revenue is granted liberty to file an application for recalling this appeal if the appeal falls in any of the exception provided inside circular of the CBDT. 4. In the result, appeal of the revenue is dismissed. Order pronounced in the open court on 28.11.2024. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (OM PRAKASH KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 28/11/2024 Poonam Mirashi, Stenographer Copy to: The Appellant The Respondent The Pr. CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "