INCOME-TAX OFFICER, WARD - 1(4), NASHIK V. SMT. SWATI SANJAY MAHESHWARI, NASHIK

MA 279/PUN/2022

AI Insights

The case involves the Income Tax Officer, Ward-1(4), Nashik as the appellant and Smt. Swati Sanjay Maheshwari, Prop. Balaji Corporation as the respondent. The Revenue filed a Miscellaneous Application challenging the ITAT's earlier decision to dismiss their appeal due to the low tax effect. The Revenue argued that the case fell under the exceptions of the CBDT Circular No.3/2018, specifically concerning information from law enforcement agencies about the assessee's transactions with Hawala parties. However, the Tribunal noted that the information was sourced from the Income Tax Department's Investigation Wing, not from external law enforcement, and thus did not meet the criteria for the exception.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777862 (ITAT-PUNE)
• Duration Of Justice: 6 year(s) 8 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-10-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 31-01-2019
• Other Referred Cases: ACIT v/s Chandrashekar A Joshi, Rang Rasayan
• Laws Referred To: CBDT Circular No.3/2018 dated 20.08.2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AKHILESH SHRIWASTAVA
• Keywords: Tax effect

Judgement Text

" आयकर अपीलीय अधिकरण ”बी” न्यायपीठ पुणेमें। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIALMEMBER Miscellaneous Application No.279/PUN/2022 (arising out of ITA No.2426/PUN/2017) निर्धारणवषा / Assessment Year: 2009-10 The Income Tax Officer, Ward-1(4), Nashik V s Smt.Swati Sanjay Maheshwari, Prop. Balaji Corporation, 2, Matru Apartment, Racca Colony, Sharanpu Road, Nashik - 422002. PAN: AOOPM0594F Appellant / Revenue Respondent / Assessee Assessee by None Revenue by Shri Akhilesh Shriwastava- Addl.CIT(DR) Date of hearing 18/07/2025 Date of pronouncement 06/10/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: In this case, Revenue has filed Miscellaneous Application against the ITAT Order in ITA No.2426/PUN/2017 dated 26.07.2018 for A.Y. 2009-10. The ITAT in ITA No.2426/PUN/2017 had dismissed the Revenue’s appeal on account of Low Tax Effect. Printed from counselvise.com MA No.279/PUN/2022 [A] 2 2. At the outset of hearing, no one attended for the hearing on behalf of the assessee. Findings & Analysis : 3. We have heard ld.DR for the Revenue and perused the records. In this case, Revenue has filed Miscellaneous Application against the ITAT Order in ITA No.2426/PUN/2017 dated 26.07.2018. The ITAT had dismissed Revenue’s appeal on account of Low Tax Effect. Revenue has field Miscellaneous Application relevant paragraph 4 and 5 of Revenue’s Miscellaneous Application No.279/PUN/2022 are reproduced here as under : “04. In the present case under litigation, it is gathered from the assessment order that information was received from the Investigation section that the Sales Tax Department has informed purchases of the assessee from Hawala parties. The assessee during the assessment proceedings failed to prove the genuineness of the purchases from the Hawala parties and addition of Rs.55,71,414/- was made by the AO on this very ground. 05. It is submitted here that however, the tax effect involved in dispute is below the threshold monetary limits for filing appeal to Hon'ble ITAT but the case of the assessee falls under exception No. 10(e) of the revised para 10 dated 20/08/2018 of the Board's Circular.” Printed from counselvise.com MA No.279/PUN/2022 [A] 3 3.1 Thus, Revenue has pleaded that the case falls under Sub-clause 10(e) of CBDT Circular No.3/2018 dated 20.08.2018. The relevant Subclause 10(e) of CBDT Circular is reproduced here as under : (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). 4. In the case of Swati Sanjay Maheshwari, it is admitted in the Miscellaneous Petition that information received from Investigation Wing of Income Tax Department. Thus, information was not received from external sources like CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). Therefore, the case of Swati Sanjay Maheshwari do not fall under Clause 10(e) of the CBDT Circular. Hence, Miscellaneous Application is dismissed. 4.1 On identical facts, Revenue’s MA has been dismissed by Pune Bench of ITAT in ACIT v/s Chandrashekar A Joshi MA No.94/PUN/2021, Rang Rasayan MA No.60/PUN/2019 vide order dated 14.01.2021. We are bound by the decision of ITAT Pune. No contrary decision brought to our notice by Revenue. Printed from counselvise.com MA No.279/PUN/2022 [A] 4 5. In the result, for all the reasons discussed, Miscellaneous Application filed by the Revenue is dismissed. Order pronounced in the open Court on 06 October, 2025. Sd/- Sd/- VINAY BHAMORE Dr.DIPAK P. RIPOTE JUDICIAL MEMBER ACCOUNTANT MEMBER पपणे / Pune; ददिधांक / Dated : 06 Oct, 2025/ SGR आदेशकीप्रनिनिनपअग्रेनषि / Copy of the Order forwarded to : 1. अपऩिधर्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. नवभधगऩयप्रनिनिनर्, आयकर अपऩिऩय अनर्करण, “बऩ” बेंच, पपणे / DR, ITAT, “B” Bench, Pune. 6. गधर्ाफ़धइि / Guard File. आदेशधिपसधर / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपऩिऩय अनर्करण, पपणे/ITAT, Pune. Printed from counselvise.com "