DCIT 9(3)(2), MUMBAI V. GENTECH LABORATORIES LTD, MUMBAI

ITA 1565/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8621 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 15-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T S KHALSA L D
• Keywords: Bogus purchase; Tax effect
• Section: 271(1)(c)

Judgement Text

ITA NO.1565/MUM/2019 M/S. GENTECH LABORATORIES LTD. ASSESSMENT YEAR: 2009-10 1 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.1565/MUM/2019 ( / ASSESSMENT YEAR: 2009-10) D CIT - 9(3) (2) ROOM NO.418, 4 TH FLOOR AAYKAR BHAVAN, CHURCHGATE MUMBAI-400 020. / VS. M/S. GENTECH LABORATORIES LTD. UNIT NO.803, 8 TH FLOOR, LODHA SUPREMUS S.B. MARG, LOWER PAREL (W) MUMBAI-400 013. !' ./ ./PAN/GIR NO. AAACG-1889-N ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI T.S. KHALSA- LD. SR.DR / DATE OF HEARING : 12/01/2021 / DATE OF PRONOUNCEMENT : 12/01/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR 2009-10, CONTESTS THE ORDER OF LEARNED FIRST APPELLATE AUTHO RITY QUA DELETION OF PENALTY U/S 271(1)(C) FOR RS.0.70 LACS. THE PENA LTY WAS LEVIED BY LD. AO VIDE ORDER DATED 20/03/2017 IN VIEW OF THE F ACT THAT THE ASSESSEE WAS SADDLED WITH ADDITION ON ACCOUNT OF AL LEGED BOGUS PURCHASES FOR RS.2.03 LACS IN THE QUANTUM ASSESSMEN T. HOWEVER, LD. CIT(A) DELETED THE SAME SINCE LD. AO FAILED TO FRAME A SPECIFIC ITA NO.1565/MUM/2019 M/S. GENTECH LABORATORIES LTD. ASSESSMENT YEAR: 2009-10 2 CHARGE AGAINST THE ASSESSEE. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 2. THOUGH NON APPEARED FOR ASSESSEE, HOWEVER, IT I S QUITE EVIDENT THAT THE QUANTUM OF PENALTY UNDER DISPUTE B Y REVENUE IS BELOW THRESHOLD MONETARY LIMIT OF RS.50 LACS AND TH EREFORE, THE APPEAL IS NOT MAINTAINABLE IN TERMS OF RECENTLY ISS UED LOW TAX EFFECT CIRCULAR NO. 17/2019 DATED 08/08/2019 [F.NO.279/MIS C. 142/2007- TTJ(PT.) ISSUED BY CBDT. THIS RECENT CIRCULAR FURTH ER ENHANCES THE MONETARY LIMIT FIXED IN EARLIER CIRCULAR NO.3 OF 20 18 DATED 11/07/2018 ISSUED BY CBDT AS AMENDED ON 20/08/2018. IN VIEW OF THE SAME, THE APPEAL IS NOT MAINTAINABLE. WE ORD ER SO. 3. AT THE SAME TIME, A LIBERTY IS GIVEN TO REVENUE TO SEEK RECALL OF THE APPEAL, IF AT A LATER STAGE, IT IS FOUND THA T THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN ANY OF THE CI RCULAR OR IN CASE THE TAX EFFECT IN THE APPEAL EXCEEDS THE PRESCRIBED MONETARY LIMIT. ORDER PRONOUNCED ON 12 TH JANUARY, 2021. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 12/01/2021 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT ITA NO.1565/MUM/2019 M/S. GENTECH LABORATORIES LTD. ASSESSMENT YEAR: 2009-10 3 3. - ( ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./% ( 0 , 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.