ITO 6(1)(2), MUMBAI V. M/S AMPEX COMMUNICATION PVT LTD., MUMBAI

ITA 1242/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5661 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 21-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Accommodation entries; Tax effect
• Section: 73

Judgement Text

, , !',#$!% IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE-PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 1242 / /20 20 ($+. . 2013-14 ) ITA NO.1242/MUM/2020(A.Y. 2013-14) INCOME TAX OFFICER 6(1)(2), ROOM NO.508, 5 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI 400 020 ...... '- / APPELLANT + VS. M/S. AMPEX COMMUNICATION PVT. LTD. 411, NIRMAN KENDRA, OFF DR. EDWN MOSES ROAD, MAHALAXMI, MUMBAI 400 011. PAN:AABCA- 5253-H ..... $./ RESPONDENT [ '-// APPELLANT BY : MS.SMITA VERMA $.// RESPONDENT BY : MS. VINITA SHAH +0$. '/ DATE OF HEARING : 09/09/2021 12 0$. '/ DATE OF PRONOUNCEMENT : 09/09/2021 %/ ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) -12, MUMBAI [I N SHORT THE CIT(A)] DATED 26/11/2019 FOR THE ASSESSMENT YEAR 2013-14. 2 ITA NO.1242/MUM/2020(A.Y. 2013-14) 2. MS. VINITA SHAH APPEARING ON BEHALF OF THE ASSE SSEE SUBMITTED AT THE OUTSET THAT THIS APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED THAT AS PER FORM -36 THE TOTAL TAX EFFECT INVOLVED IN TH IS APPEAL IS RS.3,30,000/- I.E. MUCH BELOW THE MONETARY LIMIT SPECIFIED BY THE CBDT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. 3. PER CONTRA, MS.SMITA VERMA REPRESENTING THE DEPA RTMENT SUBMITTED THAT THOUGH TAX EFFECT INVOLVED IN THE APPEAL IS LE SS THAN THE MONITORY LIMIT SPECIFIED IN THE CBDT CIRCULAR, HOWEVER, THIS APPEA L IS COVERED BY EXCEPTION PROVIDED IN PARA 10(E) OF THE CBDT CIRCULAR NO.3/ 2018 DATED 11/07/2018 AND SUBSEQUENT AMENDMENT VIDE CIRCULAR DATED 20/08/2018 . THE LD. DEPARTMENTAL REPRESENTATIVE POINTED THAT ADDITION IN THE HANDS O F ASSESSEE WERE MADE ON THE BASIS OF INFORMATION RECEIVED FROM DDIT(INV.), MUMBAI THAT THE ASSESSEE HAS OBTAINED ACCOMMODATION ENTRIES FROM BOGUS ENTR Y PROVIDER. 4. BOTH SIDES HEARD AND ORDERS OF AUTHORITIES BELOW EXAMINED. THE ASSESSMENT IN THE CASE OF ASSESSEE WAS REOPENED ON THE BASIS OF INFORMATION RECEIVED FROM INVESTIGATION WING OF THE INCOME TAX DEPARTMENT. THE TRIBUNAL IN THE CASE OF ITO VS. AMARCHAND P. SHAH, 73 ITR (TRIBUNAL) 588 (MUMBAI) HAS HELD THAT INFORMATION FROM DDIT(INV.) OF THE INCOME TAX DEPARTMENT IS NOT AN EXTERNAL SOURCE AS ENVISAGE D IN CBDT CIRCULAR (SUPRA). IT IS AN INTERNAL WING OF THE INCOME TAX DEPARTMEN T. THEREFORE, ANY ADDITION ON THE BASIS OF INFORMATION RECEIVED FROM THE INVES TIGATION WING OF THE DEPARTMENT WOULD NOT BE COVERED BY EXCEPTION PROVI DED IN PARA -10(E) OF THE CBDT CIRCULAR (SUPRA). SINCE, THE APPEAL BY REVENU E IS NOT COVERED BY EXCEPTION AS PLEADED BY LD. DEPARTMENTAL REPRESENTA TIVE AND THE TAX EFFECT 3 ITA NO.1242/MUM/2020(A.Y. 2013-14) INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MO NETARY LIMIT SPECIFIED BY THE CBDT CIRCULAR NO.17/2019 DATED 08/08/2019, THIS AP PEAL BY THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT . WE HOLD AND DIRECT ACCORDINGLY. 5. IN THE RESULT, APPEAL BY THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY THE 9 TH DAY OF SEPTEMBER, 2021. SD/- SD/- (PRAMOD KUMAR) (VIKAS AWASTHY) / VICE PRESIDENT #$! / JUDICIAL MEMBER / MUMBAI, 4+/ DATED 09/09/2021 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. '- / THE APPELLANT , 2. $. / THE RESPONDENT. 3. 5. ( )/ THE CIT(A)- 4. 5. CIT 5. 67$.$+ , . . . , / DR, ITAT, MUMBAI 6. 789:; / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI