ITO 19(1)(4), MUMBAI V. DINESHKUMAR M. SANGHAVI, MUMBAI

ITA 1258/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0168 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 10-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMLATHAMALATHI SRIDHARAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES K, MUMBAI BEFORE SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 1258 /MUM/2016 ASSESSMENT YEAR: 2010 - 11 THE ITO - 19(1)(4), ROOM NO. 222, MATRU MANDIR, MUMBAI - 400007 VS. SH. DINESH KUMAR M. SANGHAVI, 64, HARHARWALA BLDG, SVP ROAD, ALANKAR CINEMA, MUMBAI - 400007 PAN - AFXPS8582F (APPELLANT) (RESPONDENT) APPELLANT BY : MS. N. HEMLATHA/MALATHI SRIDHARAN RESPONDENT BY : NONE DATE OF HEARING: 05/07/2017 DATE OF PRONOUNCEMENT: 05 /07/2017 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAINST ORDER DATED 18/12/2015 PASSED BY THE LD CIT(APPEALS) - 30, MUMBAI FOR THE ASSESSMENT YEAR 2010 - 11. 2. THE REVENUE HAS CHALLENGED THE IMPUGNED ORDER ON FOLLOWING GROUNDS: - 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) WAS JUSTIFIED IN CONFIRMING ADDITION @ 17.5% OF TOTAL PURCHASES HELD AS BOGUS BY THE AO ? 2. THE APPELLANT PRAYS THAT THE ORDER OF THE LD. CIT (A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF AO BE RESTORED. 2 ITA NO. 1258 /MUM/ 201 6 ASSESSMENT YEAR: 2010 - 11 3. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND WHICH MAY NECESSARY. 3. THIS CASE WAS FIXED FOR HEARING FOR TODAY. HOWEVER, W HEN THE CASE WAS CALLED FOR HEARING NONE APPEARED ON BEHALF OF THE ASSESSEE. WE NOTICED THAT THE TAX EFFECT IN THIS CASE IS BELOW RS.10,00,000/ - AS THE TOTAL ADDITION MADE BY THE AO IS RS. 35,25,867/ - AND THE ADDITION SUSTAINED BY THE CIT (A) IS RS. 4,40,733/ - . HENCE , THE RELIEF GRANTED BY THE LD. CIT (A) IS RS 30,85,135/ - (35,25,867 - 4,40,733) . IF THE TAX IS CALCULATED ON THE SAID AMOUNT, IT COMES TO RS. 9 ,25,540 / - . THEREFORE , AS PER THE CBDT CIRCULAR NO. 21 OF 2015, DATED 10/12/2015, THE PRESENT APPEAL IS NOT MAINTAINABLE. 4. THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT IN DEPARTMENTS APPEAL IS BELOW RS. 10 LAKHS, W E FIND THAT THE ISSUE RAISED IN APPEAL DOES NOT FAL L UNDER ANY OF THE EXCEPTIONS SPECIFIED IN PARA 8 OF THE CIRCULAR. SINCE, IT HAS BEEN SPECIFICALLY CLARIFIED IN THE CIRCULAR AFORESAID THAT THE INSTRUCTION WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS; THE PRESENT APPEAL FILED BY THE REVENUE IS N OT MAINTAINABLE. WE, THEREFORE, DISMISS THE SAME IN LIMINE . ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH JULY , 2017 SD/ - SD/ - ( B.R.BASKARAN ) (RAM LAL NEGI) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 05 / 07 / 2017 ALINDRA, PS 3 ITA NO. 1258 /MUM/ 201 6 ASSESSMENT YEAR: 2010 - 11 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI