INCOME TAX OFFICER-20(1)(1), MUMBAI V. IQBAL ISMAIL LOKHANDWALA , MUMBAI

MA 350/MUM/2023

AI Insights

The case involves the Income Tax Department (Revenue) seeking to recall an earlier Tribunal order which had dismissed their appeal on the grounds that the tax effect was below the threshold limit. The Revenue argued that the case fell under an exception provided in the CBDT Circular dated 20.08.2018, specifically para 10(e), which pertains to cases involving information received from external agencies about bogus purchases. However, during the hearing, the Departmental Representative (DR) failed to provide the necessary documentary evidence to substantiate this claim, leading to the dismissal of the Miscellaneous Application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32002 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-09-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 04-05-2023
• Laws Referred To: CBDT Circular dated 20.08.2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA KUMAR
• Keywords: Bogus purchase; Tax effect; Bogus

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) MA No. 350/MUM/2023 (Airing out of ITA No. 963/MUM/2022) Assessment Year: 2011-12 ITO-20(1)(1), Room No. 110, 1st floor, Piramal Chamber, Mumbai- 400012. Vs. Iqbal Ismail Lokhandwala, Prop-M/s Perfect Steel Traders, 51, New Darukhana, Sonapur Lane, Mumbai-400010. PAN NO. ABYPL 2053 P Appellant Respondent Assessee by : None Revenue by : Mr. Krishna Kumar Date of Hearing : 20/09/2024 Date of pronouncement : 16/10/2024 ORDER PER OM PRAKASH KANT, AM By way of this Miscellaneous Application, the Revenue is seeking recall of the order of the Tribunal in ITA No. 963/Mum/2022 for assessment year 2011-12. 2. The ld. Departmental Representative (DR) submitted that the Tribunal has passed the order holding that tax effect involved in the appeal was below the threshold limit and the Tribunal has given liberty to revenue to filed application for recalling in case appeal is covered by any exception provided under CBDT Circular dated 20.08.2018. The Ld. DR submitted that the appeal of the assessee falls under exception mentioned in para 10(e) of the said Circular (supra). 3. During the course of hearing the Ld. DR necessary documentary evidence in support that the information of the bogus purchases was received from th prescribed under para 10(e) of the CBDT Circular (supra) Ld. DR failed to provide that the addition is based external agencies. The prayer of the Revenue of recalling/rectifying of the order of the Tribunal is 4. In the result, th Revenue is dismissed. Order pronounced in the open Court on Sd/ (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 16/10/2024 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// 20.08.2018. The Ld. DR submitted that the appeal of the assessee falls under exception mentioned in para 10(e) of the said Circular urse of hearing the Ld. DR was necessary documentary evidence in support that the information of the bogus purchases was received from the external agencies as ed under para 10(e) of the CBDT Circular (supra) provide any such documentary evidence in support that the addition is based on the information received from the he prayer of the Revenue of recalling/rectifying of the order of the Tribunal is accordingly rejected. In the result, the Miscellaneous Application filed by the Revenue is dismissed. onounced in the open Court on 16/10/2024. Sd/- Sd/ RAHUL CHAUDHARY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Iqbal Ismail Lokhandwala 2 MA No. 350/Mum/2023 20.08.2018. The Ld. DR submitted that the appeal of the assessee falls under exception mentioned in para 10(e) of the said Circular was asked to file necessary documentary evidence in support that the information of e external agencies as ed under para 10(e) of the CBDT Circular (supra) but the such documentary evidence in support the information received from the he prayer of the Revenue of recalling/rectifying e Miscellaneous Application filed by the /10/2024. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER (Assistant Registrar) ITAT, Mumbai "