ACIT-10(1)(1), MUMBAI V. INTER CARAT JEWELLERY PRIVATE LIMITED, MUMBAI

ITA 1733/MUM/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3520 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 16-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV K GUBGOTRA LD
• Assessee Lawyers: PRAKASH JOTWANI LD
• Keywords: Bogus purchase; Tax effect

Judgement Text

ITA.NOS.1733-1737/MUM/2018 INTER CARAT JEWELLERY PVT.LTD ASSESSMENT YEARS-2009-10 TO 2013-14 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.1733 TO 1737/MUM/2018 ( / ASSESSMENT YEARS: 2009-10 TO 2013-14) ASSISTANT COMMISSIONER OF INCOME-10(1)(1) ROOM NO.209, 2 ND FLOOR AAYKAR BHAWAN M.K.ROAD, MUMBAI 400 020 / VS. INTER CARAT JEWELLERY P VT. LTD. PLOT NO. 19, INTER CARAT ROAD NO. 9 ANDHERI (EAST) MUMBAI 400 093 ./ ./PAN/GIR NO. AABCI-1023-K ( ! /APPELLANT ) : ( '# ! / RESPONDENT ) ASSESSEE BY : PRAKASH JOTWANI, LD. AR REVENUE BY : RAJEEV K. GUBGOTRA, LD. DR / DATE OF HEARING : 17/08/2018 / DATE OF PRONOUNCEMENT : 17/08/2018 / O R D E R PER BENCH 1. AFORESAID APPEALS BY REVENUE FOR ASSESSMENT YEAR S [AY] 2009-10 TO 2013-14 CONTESTS COMMON ORDER OF LD. FIRST APPEL LATE AUTHORITY QUA CERTAIN RELIEF PROVIDED TO THE ASSESSEE. IN THE QUA NTUM ASSESSMENT FOR ALL THESE YEARS, THE ASSESSEE HAS BEEN SADDLED WITH CERTAIN ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES, THE DETAILS OF WHICH HAVE ALREADY BEEN EXTRACTED ON PAGE NUMBER-3 OF THE IMPUGNED ORDER. THE LD. CIT(A) ITA.NOS.1733-1737/MUM/2018 INTER CARAT JEWELLERY PVT.LTD ASSESSMENT YEARS-2009-10 TO 2013-14 2 HAS ESTIMATED THE ADDITIONS AGAINST THE SAME @12.5% , AGAINST WHICH THE REVENUE IS IN FURTHER APPEAL BEFORE US. 2. THE LD. AUHTORIZED REPRESENTATIVE FOR ASSESSEE [ AR], SHRI PRAKASH JOTWANI, AT THE OUTSET, POINTED OUT THAT THE TAX EFFECT OF T HE QUANTUM ADDITIONS IN EACH OF THESE AYS AS CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED THRESHOLD LIMIT OF RS.20 LACS AND THE SAME IS COVERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THE LD. DR, SHRI. RAJIV K. GUBGOTRA, HAS CONTROVERTED THE SAME BY SUBMITTING THAT NECESSARY INSTRUCTIONS / CERTIFICATE, IN THIS REGARD, WOULD BE REQUIRED FROM HIGHER AUTHORITIES. 3. WE HAVE GONE THROUGH THE CIRCULAR AND FIND THAT THE TAX EFFECT OF QUANTUM IN DISPUTE IN EACH OF THE AYS IS BELOW PRES CRIBED LIMIT OF RS.20 LACS AND THE ASSESSEE STOOD BENEFITTED BY THE ABOVE CIRCULAR ISSUED BY CBDT WHEREIN THE MINIMUM MONETARY LIMIT FOR FILING THE APPEALS BEFORE VARIOUS APPELLATE AUTHORITIES HAVE BEEN FIXED AS UN DER:- S. NO. APPEALS/ SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 20.00,000 2 BEFORE HIGH COURT 50.00,000 3 BEFORE SUPREME COURT 1,00.00,000 THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR APPLIES TO PENDING APPEALS ALSO. IN VIEW OF THE ADMITTED POSITION, WE DISMISS THE REVENUES APPEAL FOR ALL THESE AYS. 4. SO FAR AS THE CONTENTIONS RAISED BY LD. DR IS CO NCERNED, WE FIND THAT AFORESAID CIRCULAR DOES NOT ENVISAGE OBTAINING OF ANY CERTIFICATE FROM ITA.NOS.1733-1737/MUM/2018 INTER CARAT JEWELLERY PVT.LTD ASSESSMENT YEARS-2009-10 TO 2013-14 3 ANY AUTHORITIES, IN ANY MANNER. NEVERTHELESS, THE R EVENUE IS FREE TO MOVE APPROPRIATE APPLICATION TO RECALL THIS ORDER, IF AT A LATER 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 ADDITIONS AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 5. THE LD. AR HAS STATED THAT THE ASSESSEE IS ALSO IN APPEAL AGAINST QUANTUM ADDITIONS AS SUSTAINED BY LD. CIT(A) WHICH WOULD BE HEARD IN DUE COURSE OF TIME. THEREFORE, IT IS MADE CLEAR THA T THE REVENUES APPEAL HAVE BEEN DISMISSED WITHOUT GOING INTO THE MERITS O F THE CASE KEEPING IN VIEW THE AFORESAID CIRCULAR ISSUED BY THE CBDT AND THEREFORE, THE DISMISSAL OF THESE APPEALS SHALL HAVE NO BEARING ON ASSESSEES APPEAL ON MERITS. 6. ALL THE APPEALS STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH AUGUST, 2018. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 17/08/2018 SR.PS:-THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '# ! / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. ) *' + , + , / DR, ITAT, MUMBAI 6. * ,-. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI