INCOME-TAX OFFICER, WARD-4(1)(1), AHMEDABAD, AHMEDABAD V. SUN GOLD CAPITAL LIMITED, AHMEDABAD

MA 78/AHD/2025

AI Insights

The case involves the Income Tax Officer, Ward-4(1)(1), Ahmedabad as the applicant and Sun Gold Capital Limited as the respondent. Initially, the Tribunal dismissed the Revenue's appeal due to low tax effect, adhering to CBDT Circular No. 09/2024. However, the Revenue contended that the case should be exempt from this circular's monetary limits as it involved accommodation entries. The Tribunal acknowledged this oversight and decided to recall the previous order, setting a new date for a detailed hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784632 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-11-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 05-08-2025
• Laws Referred To: CBDT Circular No. 09/2024, CBDT Circular No. 05/2024
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT
• Keywords: Tax effect; Capital Gains; Accommodation entries; Bogus
• Section: 132

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER MA No. 78/Ahd/2025 in ITA No. 1938/Ahd/2024 (Assessment Year: 2016-17) The Income-Tax Officer, Ward-4(1)(1), Ahmedabad Vs. Sun Gold Capital Limited, 41, Green Villa Complex, Nr. H.B. Kapadia School, Gurukul Road, Ahmedabad-380052 [PAN: AAJCS 0998 M] (Applicant) .. (Respondent) Revenue by: Shri Abhijit, Sr DR Assessee by : None Date of Hearing 07.11.2025 Date of Pronouncement 12.11.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT : The Revenue, by way of this Miscellaneous Application, seeks recall of the order passed by the ITAT in ITA No. 1938/Ahd/2024 dated 11/02/2025 on the ground that the said order suffers from a mistake apparent from the record. 2. The Revenue has submitted that the appeal filed by the Department was dismissed by the Tribunal vide its order dated 11/02/2025 on account of low tax effect in terms of CBDT Circular No. 09/2024 dated 17/09/2024. However, it is contended that the present case falls within the exception provided under the said Circular, wherein it has been specifically directed that the monetary limits prescribed for filing appeals shall not apply to cases involving accommodation entries. The Revenue, therefore, submitted that the Tribunal inadvertently erred in dismissing the appeal on account of low tax effect, though the case falls under the said exception. Printed from counselvise.com MA No. 78/Ahd/2025 ITO vs. Sun Gold Capital Limited Asst. Year : 2016-17 - 2– 3. The Ld. DR reiterated the contents of the Miscellaneous Application and submitted that the Tribunal’s order deserves to be recalled as it contains an apparent mistake. The relevant portion of the Miscellaneous Application is reproduced below for ready reference: - “5. The decision of the ITAT is not acceptable. The ITAT has not appreciated the fact that the assessee company had received accommodation entries amounting to Rs. 1,32,50,000/-, which had neither been recorded in the books of account nor properly explained during the course of assessment proceedings. A search under section 132 was conducted on 11.09.2018 in the case of Shri Jignesh Shah, an accommodation entry provider. During the course of investigation, it was found that Shri Jignesh Shah was managing and controlling multiple companies and concerns which were not carrying out any genuine business activities. In his statement, Shri Jignesh Shah explained the modus operandi in respect of providing accommodation entries in the nature of unsecured loans, one-time entries, shroff business, cheque against cash, accommodation entries of profit on NMCE platform, and bogus long-term capital gains. The details of the persons/concerns through whom accommodation entries had been availed by the assessee, M/s. Sun Gold Capital Limited, during the F.Y. 2015-16 relevant to A.Y. 2016-17 were found in an MS Excel sheet seized during the course of search. It is evident from the material on record that the assessee had availed accommodation entries through Shri Jignesh Shah amounting to Rs. 1,32,55,000/-. Therefore, the then Assessing Officer rightly inferred during the course of assessment proceedings that the assessee company was used for providing accommodation entries under the control of Shri Jignesh Shah. 6. Therefore, the decision of ITAT is not acceptable in principle as the AD has clearly brought out the facts on record in the assessment order to justify the addition. The tax effect in this case is worked out at Rs. 52,28,193/-which is below the prescribed monetary limit for filing appeal before the Hon'ble High Court in view of Board's Circular No. 09/2024 dated 17/09/2024. However, the case falls under exceptions laid down vide Circular No. 09/2024 dated 17/09/2024 wherein it has been directed that the monetary limit for filing appeal shall not apply in case of assessee providing accommodation entries, the appeals/SLPs in such cases are required to be filed on merits. Since, the Hon'ble ITAT ought to have decided the issue on merits, this Miscellaneous Application is being filed to draw attention of the Hon'ble ITAT in the above matter. 7. It is respectfully prayed that the Hon'ble ITAT may kindly consider the above facts and circumstances and recall the order dated 11.02.2025 by allowing the Miscellaneous Application, and adjudicate the matter on merits in the interest of justice.” Printed from counselvise.com MA No. 78/Ahd/2025 ITO vs. Sun Gold Capital Limited Asst. Year : 2016-17 - 3– 4. We have considered the submissions of the Revenue, perused the material on record, and gone through the order of the Tribunal dated 11/02/2025. On perusal, it is noticed that the Tribunal dismissed the appeal of the Revenue on the ground of low tax effect as per CBDT Circular No. 09/2024 dated 17/09/2024, without considering that the case falls under the exception relating to accommodation entries specified in the said Circular, as well as paragraph No. 3.1(h) of CBDT Circular No. 05/2024 dated 15.03.2024. We, therefore, find merit in the contention of the Revenue that the case of the assessee involves accommodation entries as per the findings of the Assessing Officer. Accordingly, the appeal of the Revenue ought to have been adjudicated on merits and not dismissed merely on account of low tax effect. In view of the above, we recall our order dated 11/02/2025 passed in ITA No. 1938/Ahd/2024. The Registry is directed to fix the appeal for hearing afresh on 17.12.2025. 5. In the result, the Miscellaneous Application filed by the Revenue is allowed. The order is pronounced in the open Court on 12.11.2025 Sd/- Sd/- (T.R. SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 12/11/2025 **btk आदेश की \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "