INCOME-TAX OFFICER, JALGAON V. SHRI SATYANARAYAN NEMICHAND DAGA, JALGAON

MA 284/PUN/2022

AI Insights

The case involves the Income Tax Officer, Ward-1(5), Jalgaon as the appellant and Shri Satyanarayan Menichand Daga, proprietor of Sudarshan Allied Industries, as the respondent. The Revenue filed a Miscellaneous Application against the ITAT Order which had dismissed their appeal due to low tax effect. The Revenue argued that the case should be reconsidered under the exception clauses of the CBDT Circular No.03/2018, specifically citing information from the Sales Tax Department about hawala dealers. However, the ITAT Pune Bench followed previous decisions, maintaining that such information does not qualify for exceptions under the Circular, leading to the dismissal of the Miscellaneous Application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708202 (ITAT-PUNE)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2009-2010
• Other Referred Cases: MA No.94/PUN/2021, ITA No.1872/PUN/2019, ITA No.1852/PUN/2019, M.A.No.60/PUN/2019
• Laws Referred To: CBDT Circular No.03/2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MADHAN THIRMANPALI
• Assessee Lawyers: DEEPA KHARE
• Keywords: Tax effect

Judgement Text

" आयकर अपीलीय अिधकरण ”बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER Miscellaneous Application No.284/PUN/2022 (arising out of ITA No.863/PUN/2016) िनधाᭅरण वषᭅ / Assessment Year: 2009-10 The Income Tax Officer, Ward-1(5), Jalgaon. V s Shri Satyanarayan Menichand Daga, Prop. of Sudarshan Allied Industries, 135, Adarsh Nagar, Jalgaon. Maharashtra. PAN: AAMPD6601J Appellant / Revenue Respondent / Assessee Assessee by Smt. Deepa Khare – AR Revenue by Shri Madhan Thirmanpali – Addl.CIT(DR) Date of hearing 16/05/2025 Date of pronouncement 15/07/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: The Revenue has filed Miscellaneous Application against the ITAT Order in ITA No.863/PUN/2016. The Revenue has pleaded that ITAT has dismissed the appeal of the assessee on account of Low Tax Effect as specified in CBDT Circular No.03/2018. However, the Revenue pleaded that this particular case MA No.284/PUN/2022 [A] 2 falls under Exception Clauses, more specifically “Sub-Clause-e” of the CBDT Circular No.03/2018, as there was information in this case received from Sales Tax Department regarding Hawala Dealers. Therefore, Revenue pleaded that the ITAT Order may be recalled. 2. It is noted that ITAT has consistently taken a view that information received from Sales Tax Department does not fall in the exception category. The said view has been taken in MA No.94/PUN/2021 for A.Y.2012-13(arising out of ITA No.785/PUN/2018) vide order dated 04.02.2022. The relevant paragraph 3 of the ITAT in MA No.94/PUN/2021 is reproduced here as under : “3. As regards the contention of the ld. DR that the appeal should not have been dismissed because the addition in this case was made on the basis of information from the Sales Tax Department, Maharashtra about the assessee indulging in hawala transactions and hence covered in the exception clause of the Circular as referred to above, we find that such a contention has not been countenanced by the Pune Benches of the Tribunal in several cases including ITO vs. M/s Param Marketing (ITA No.1872/PUN/2019 dt.30-01-2020) and 3 ITO vs. Yusuf Gulmmohmmed Patel (ITA No.1852/PUN/2019 dt.30-01-2020). Not only that, even the Miscellaneous application filed u/s 254(2) on this issue has also been dismissed in DCIT vs. M/s Rang Rasayan (M.A.No.60/PUN/2019 dt. 14-01-2020). No contrary view has been MA No.284/PUN/2022 [A] 3 brought to our notice on behalf of the Revenue. Respectfully following the above precedent, we are not inclined to accept the Miscellaneous application filed by the Revenue.” 3. We are bound by the decisions of ITAT Pune, therefore, following the judicial precedence, we dismiss the Miscellaneous Application filed by the Revenue. 4. In the result, Miscellaneous Application filed by the Revenue is dismissed. Order pronounced in the open Court on 15 July, 2025. Sd/- Sd/- (VINAY BHAMORE) (Dr.DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 15 July, 2025/ SGR आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. "