ACIT 12(2)(2), MUMBAI V. GIRIRAJ CIVIL DEVELOPERS P.LTD, MUMBAI

ITA 1183/MUM/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5569 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 20-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ARUN KUMAR SINGH LD
• Assessee Lawyers: MORVI CHATURVEDILD
• Keywords: Tax effect
• Section: 143(3); 68

Judgement Text

ITA NO.1183/MUM/2017 M/S. GIRIRAJ CIVIL DEVELOPERS PRIVATE LIMITED ASSESSMENT YEAR :2007-08 1 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI . . , , BEFORE HONBLE SHRI C.N. PRASAD, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.1183/MUM/2017 ( / ASSESSMENT YEAR: 2007-08) A CIT - 12(2)(2) ROOM NO.145, 1 ST FLOOR, AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020. / VS. M/S. GIRIRAJ CIVIL DEVELOPERS PVT. LTD. B-5, PARAS DARSHAN, S.V. ROAD, BORIVALI (E) MUMBAI-400 066. ! ./ ./PAN/GIR NO. AACCG-4613-L ( !# /APPELLANT ) : ( $!# / RESPONDENT ) ASSESSEE BY : MS. MORVI CHATURVEDI-LD.AR REVENUE BY : CHAUDHARY ARUN KUMAR SINGH - LD.SR.DR / DATE OF HEARING : 20/08/2019 / DATE OF PRONOUNCEMENT : 20/08/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2007-08 CONTEST THE ORDER OF LD. COMMIS SIONER OF INCOME- TAX (APPEALS)-20, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-20/ACIT -12(2)(2)/IT-91/2015-16 DATED 07/11/2016 AS CORRECTED VIDE CORRIGENDUM DATED 11/01/2017 ON FOLLOWING GROU NDS OF APPEAL: - ITA NO.1183/MUM/2017 M/S. GIRIRAJ CIVIL DEVELOPERS PRIVATE LIMITED ASSESSMENT YEAR :2007-08 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.1,00,00,000/- ON ACCOUNT OF DISALLOWANCE U/S. 68 OF THE ACT MADE BY THE AO WITHOUT APPRECIAT ING THAT THE FACTS OF THE CASE ELABORATELY DISCUSSED BY THE AO IN THE ASSESSM ENT ORDER U/S. 143(3) OF THE I.T. ACT. 2. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE, AT THE OUTSET, SUBMITTED THAT THE TAX EFFECT OF QUANTUM ADDITIONS BEING CONTESTED BY THE REVENUE IS BELOW THRESHOLD MONETARY LIMIT OF RS.50 LACS AS PRESCRIBED BY CENTRAL BOARD OF DIRECT TAXES IN ITS RECENTLY IS SUED CIRCULAR NO.17/2019 DATED 08/08/2019 [F.NO.279/MISC.142/2007 -TTJ(PT.) GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMEN T OF REVENUE] AND THEREFORE, THE APPEAL DESERVE TO BE DISMISSED. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, SUBMITTED THAT T HE QUANTUM ADDITIONS WERE MADE ON THE BASIS OF INFORMATION RECEIVED FROM DGIT (INVESTIGATION), MUMBAI AND THEREFORE, THE CASE WOU LD FALL UNDER EXCEPTION 10(E) OF CIRCULAR NO. 03 OF 2018 DATED 11 /07/2018 AS AMENDED ON 20/08/2018. 3. UPON PERUSAL, IT IS UNDISPUTED POSITION THAT THE TAX EFFECT OF THE QUANTUM ADDITIONS BEING CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED MONETARY LIMIT OF RS.50 LACS AND THE SAM E IS COVERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.17/2019 DATED 08/08/2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THIS RECENT CIRCULAR FURTHER ENHANCES THE MONETARY LIMIT FIXED IN EARLIE R CIRCULAR NO.3 OF 2018 DATED 11/07/2018 ISSUED BY CBDT AS AMENDED ON 20/08 /2018. THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR NO. 3 OF 2018 DATED 11/07/2018, APPLIES TO PENDING APPEALS ALSO. ITA NO.1183/MUM/2017 M/S. GIRIRAJ CIVIL DEVELOPERS PRIVATE LIMITED ASSESSMENT YEAR :2007-08 3 4. SO FAR AS THE PLEA OF LD. DR IS CONCERNED, WE FI ND THAT INFORMATION RECEIVED FROM DGIT (INVESTIGATION) WOULD NOT CONSTI TUTE EXTERNAL SOURCES WITHIN THE MEANING OF CLAUSE (E) OF PARA 10 OF CIRC ULAR NO. 03/2018 DATED 11/07/2018 AS AMENDED ON 20/08/2018. THIS VIEW HAS BEEN TAKEN BY THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF ITO V/S LATE SHRI AMARCHAND P. SHAH, ITA NO.818-820/MUM/2017 ORDER DA TED 08/07/2019 WHEREIN IT HAS BEEN HELD THAT DIRECTORATE OF INCOME TAX (INVESTIGATION) WORKS UNDER THE AEGIS OF INVESTIGAT ION DIVISION OF CBDT WHO IS ITS CONTROLLING AUTHORITY AND HENCE, COULD N OT BE CALLED AS EXTERNAL SOURCE. 5. KEEPING IN VIEW THE SAME, WE DISMISS THE APPEAL WITH A LIBERTY TO THE REVENUE TO SEEK RECALL OF THE APPEAL, IF AT A L ATER STAGE, IT IS FOUND THAT THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN THE AFORESAID CIRCULAR OR IN CASE THE TAX EFFECT OF THE QUANTUM A DDITIONS AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH AUGUST, 2019. SD/- SD/- (C.N. PRASAD) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 20/08/2019 SR.PS, JAISY VARGHESE 23456736 / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $!# / THE RESPONDENT 3. J ( ) / THE CIT(A) ITA NO.1183/MUM/2017 M/S. GIRIRAJ CIVIL DEVELOPERS PRIVATE LIMITED ASSESSMENT YEAR :2007-08 4 4. J / CIT CONCERNED 5. KL ? M , M , / DR, ITAT, MUMBAI 6. LNOP / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.