INCOME TAX OFFICER WARD 3(4), THANE V. SMT.USHA GOPALJI NIGAM, MUMBAI

ITA 1182/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5933 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 01-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMATHA MULLAMUDI LD
• Keywords: Bogus purchase; Tax effect
• Section: 271(1)(c)

Judgement Text

ITA NO.1182/MUM/2019 SMT. USHA GOPALJI NIGAM ASSESSMENT YEAR :2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.1182/MUM/2019 ( / ASSESSMENT YEAR : 2010-11 ) I T O - WARD - 3(4) ROOM NO.9, 6 TH FLOOR B-WING, WAGLE INDUSTRIAL ESTATE THANE (W)-400 604 / VS. SMT. USHA GOPALJI NIG AM 5, SATYAM INDUSTRIAL ESTATE POKHRAN ROAD NO.1 UPVAN, THANE (W)-400 606. PAN : AABPN - 4014 - E ( %& /APPELLANT ) : ( '(%& / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : MS. SAMATHA MULLAMUDI-LD. DR / DATE OF HEARING : 29/09/2020 / DATE OF PRONOUNCEMENT : 29/09/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2010-11 CONTEST THE ORDER OF LD. COMMIS SIONER OF INCOME- TAX (APPEALS)-2, THANE [IN SHORT REFERRED TO AS CI T(A)], APPEAL NO. ITA NO.460/2014-15 DATED 26/12/2018 QUA DELETION OF PENALTY U/S 271(1)(C) FOR RS.2,14,537/-. AT THE TIME OF HEARING, NONE APP EARED FOR ASSESSEE. HOWEVER, THE MATTER WAS PROCEEDED WITH SINCE THE RE VENUES APPEAL, ITA NO.1182/MUM/2019 SMT. USHA GOPALJI NIGAM ASSESSMENT YEAR :2010-11 2 PRIMA-FACIE , IS NOT MAINTAINABLE IN TERMS OF LOW TAX EFFECT CI RCULAR NO. 17/2019 DATED 08/08/2019 [F.NO.279/MISC. 142/2007-T TJ(PT.) ISSUED BY CBDT. 2. THE MATERIAL ON RECORD WOULD SHOW THAT THE PENAL TY HAS BEEN LEVIED ON ACCOUNT OF ADDITION OF ALLEGED BOGUS PURCHASES AGGREGATING TO RS.7,01,990/- WHICH HAS BEEN ACCEPTED BY THE ASSESS EE. CONSEQUENTLY, THE IMPUGNED PENALTY WAS LEVIED VIDE ORDER DATED 25 /08/2014. HOWEVER, UPON FURTHER APPEAL, LD. CIT(A) DELETED THE SAME, I NTER-ALIA, BY RELYING UPON THE DECISION OF HONBLE SUPREME COURT IN CIT V/S RELIANCE PETRO PRODUCTS PVT. LTD. (2010 322 ITR 158). AGGRIEVED THE REVENUE IN IN FURTHER APPEAL BEFORE US. 3. WE FIND THAT THE QUANTUM OF PENALTY AS DISPUTED BY THE REVENUE IS BELOW THRESHOLD MONETARY LIMIT OF RS.50 LACS AND TH E APPEAL IS NOT MAINTAINABLE IN TERMS OF RECENTLY ISSUED LOW TAX EF FECT CIRCULAR NO. 17/2019 DATED 08/08/2019 [F.NO.279/MISC. 142/2007-T TJ(PT.) ISSUED BY CBDT. THIS RECENT CIRCULAR FURTHER ENHANCES THE MON ETARY LIMIT FIXED IN EARLIER CIRCULAR NO.3 OF 2018 DATED 11/07/2018 ISSU ED BY CBDT AS AMENDED ON 20/08/2018. IN VIEW OF THE SAME, THE AP PEAL IS NOT MAINTAINABLE. 4. AT THE SAME TIME, A LIBERTY IS GIVEN TO REVENUE TO SEEK RECALL OF THE APPEAL, IF AT A LATER STAGE, IT IS FOUND THAT THE M ATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN ANY OF THE CIRCULAR OR IN CA SE THE TAX EFFECT AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. ITA NO.1182/MUM/2019 SMT. USHA GOPALJI NIGAM ASSESSMENT YEAR :2010-11 3 5. IN THE RESULT, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 29 TH SEPTEMBER, 2020. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 29/09/2020 SR.PS, JAISY VARGHESE !'! / COPY OF THE ORDER FORWARDED TO : 1. %& / THE APPELLANT 2. '(%& / THE RESPONDENT 3. / ( ) / THE CIT(A) 4. / / CIT CONCERNED 5. 01'*2 , 2 , / DR, ITAT, MUMBAI 6. 1345 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.