ASST CIT 18(3), MUMBAI V. SUMIT J JAIN, MUMBAI

ITA 146/MUM/2017

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9085 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 06-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Tax effect
• Section: 68; 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA NO.146/M/2017 ASSESSMENT YEAR: 2010-11 ACIT 18(3), R NO.609, 6 TH FLOOR, EARNEST HOUSE, NARIMAN POINT, MUMBAI - 400021 VS. SHRI SUMIT J JAIN, 453 E, 2 ND FLOOR, CHIKAL HOUSE, KALBADEVI ROAD, MUMBAI 400 02 PAN: ADEPJ9200A (APPELLANT) (R ESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI MANI JAIN, C.A. REVENUE BY : MS. SURABHI SHARMA, D.R. DATE OF HEARING : 10.12.2019 DATE OF PRONOUNCEMENT : 19.12.2019 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 22.04.2015 OF THE COMMISSIO NER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2010-11. 2. IN GROUND NOS.1 TO 3 THE REVENUE HAS CHALLENGED THE ADDITION OF RS.1,91,00,000/- DELETED BY THE LD. CIT (A) AS MADE BY THE AO UNDER SECTION 68 OF THE ACT IN RESPECT OF BOGUS UNSECURED LOANS AND IN GROUND NO.4 THE REVENUE HAS CHALLENGED THE DELETION OF ADDITION OF RS.5,89,698/ - AS MADE BY THE AO TOWARDS INTEREST EXPENDITURE ON SUCH BOGUS L OAN. ITA NO.146/M/2017 SHRI SUMIT J JAIN 2 3. AT THE OUTSET, THE LD. A.R. OF THE ASSESSEE FILE D A RECTIFICATION ORDER PASSED UNDER SECTION1 54 DATED 07.04.2015 WHEREIN THE ADDITION AS CHALLENGED BY THE REVENUE I N THE GROUND NO.1 TO 3 OF RS.1,91,00,000/- HAS BEEN REDUC ED TO RS.1,20,00,000/- ON ACCOUNT OF APPARENT MISTAKE AND THUS THE TAX EFFECT IN THIS APPEAL OF REVENUE IS LESS THAN R S.50 LAKHS. IT IS FURTHER NOTICED THAT THE CBDT RECENTLY HAS AMEND ED THE CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018 AMOUNTING VIDE CIRCULAR NO. 17/2019, F.NO. 279/MISC.142/2007-ITJ(P T.) DATED 08.08.2019 INCREASING THE LIMIT FOR FILING OF APPEA L BEFORE INCOME TAX APPELLATE TRIBUNAL I.E. RS.50 LACS IN EACH OF T HE CASE. WE NOTED THAT EARLIER CIRCULAR NO. 3 OF 2018 WAS MADE APPLICABLE TO PENDING APPEALS ALSO AND THIS CLAUSE OF THE CIRCULA R REMAINS UNCHANGED EVEN AFTER THE AMENDMENT. ADMITTEDLY, IN THIS CASE TAX EFFECT IS BELOW PRESCRIBED LIMIT FOR FILING OF APPEAL BEFORE THE TRIBUNAL BY THE REVENUE I.E. RS.50 LACS. 4. WHEN THIS WAS CONFRONTED TO THE LEARNED SR. DEPA RTMENTAL REPRESENTATIVE, HE COULD NOT POINT OUT THAT THIS AP PEAL FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN CIRCULAR NO. 17 OF 2019. ADMITTEDLY, THE TAX EFFECT IN THIS APPEAL OF REVENUE IS MUCH BELOW THE PRESCRIBED LIMIT OF FILING APPEAL BE FORE THE TRIBUNAL I.E. RS.50 LACS AS PER CBDT CIRCULAR NO. 1 7 OF 2019. IN VIEW OF THE ABOVE, THIS APPEAL OF REVENUE IS DISMIS SED AS WITHDRAWN IN VIEW OF CIRCULAR NO. 17 OF 2019. 5. NOW, BEFORE US, THE LEARNED CIT DEPARTMENTAL REPRESENTATIVE ONLY REQUESTED THAT HE WANT TO VERIF Y WHETHER THIS APPEAL FALLS UNDER ANY OF THE EXPLANATION PROV IDED IN CBDT CIRCULAR NO. 3/2018. HERE, WE ARE OF GIVING LIBERTY TO REVENUE ITA NO.146/M/2017 SHRI SUMIT J JAIN 3 THAT IN CASE, AFTER PASSING OF THE ORDER IT COMES T O THE NOTICE OF THE REVENUE THAT THIS APPEAL DOES NOT FALLS UNDER A NY EXPLANATION OF THE CBDT BY 3/18, THE AO CAN MOVE FO R RECALLING OF THE ORDER WITHIN THE PRESCRIBED TIME LIMIT UNDER SECTION 254 OF THE ACT. HENCE, THIS APPEAL IS DISMISSED AS LOW TAX EFFECT COVERED BY CBDT CIRCULAR NO. 17/2019. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19.12.2019. SD/- SD/- ( AMARJIT SINGH) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 19.12.2019. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORDER DY/ASS TT. REGISTRAR, ITAT, MUMBAI.