ITO 14(3)(2), MUMBAI V. SHANTILAL MANILAL & SONS, MUMBAI

ITA 1896/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3953 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2004-2005
• Appeal Filed On: 20-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJUNATHA SWAMY
• Keywords: Tax effect
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUM BAI BEFORE SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM ./ I.T.A. NO.1896/MUM/2014 ( / ASSESSMENT YEAR: 2004-05) INCOME TAX OFFICER-14(3)-2, 6 TH FLOOR, EARNEST HOUSE, NARIMAN POINT, MUMBAI-400 021. / VS. M/S. SHANTILAL MANILAL & SHAH 579, SUNDER CHOWK, MJ MARKET, MUMBAI-400 002. ./ ./PAN/GIR NO. AAOFS 1210L ( /APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI MANJUNATHA SWAMY / RESPONDENT BY : SHRI AMIT KHATIWALA / DATE OF HEARING : 11/02/2016 !'# / DATE OF PRONOUNCEMENT : 26/02/2016 $% / O R D E R PER RAJESH KUMAR, A. M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 09.12.2013 OF COMMISSIONER OF INCOME TAX (APPEALS)-25, MUMBAI (HE REINAFTER CALLED AS THE CIT(A) ) FOR ASSESSMENT YEAR 2004-05. 2 ITA NO.1896/MUM/2014 (A.Y. 04-05) ITO VS. M/S. SHANTILAL MANILAL & SHAH 1. THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FACT BY NOT SUSTAINING ADDITION U/S 69 AFTER HAVING ACCEPTED THE FINDING I N PRINCIPLE THAT THE PURCHASES WERE MADE FROM UNDISCLOSED/ UNVERIFIABLE/ UNIDENTIFIABLE PARTIES IN THE GREY MARKET BY INVESTING IN CASH AND THE PUR CHASES FROM THE GROUP CONCERNS OF SHRI RAKESH GUPTA & FAMILY WERE ONLY AC COMMODATION ENTRIES AND NOT ACTUAL PURCHASES. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) AFTER HAVING ACCEPTED THE FACT THAT THE PURCHASES MADE FR OM OR THROUGH SHRI RAKESHKUMAR GUPTA AND HIS FAMILY MEMBERS ARE BOGUS, ERRED IN LAW IN NOT CONFIRMING THE ADDITION AT LEAST TO THE EXTENT OF P EAK OF THE PURCHASES MADE FORM SUCH FROM SUCH PARTIES ON ACCOUNT OF BOGUS PUR CHASES MADE IN CASH FROM THE OPEN MARKET OUT OF UNACCOUNTED CASH, IN VI EW OF THE DECISION HELD BY THE HONBLE ITATS C-BENCH, AHMEDABAD, IN THE CA SE OF VIJAY PROTEINS LTD VS. ACIT (58ITD 428). 2. AT THE OUTSET THE LD. AR OF THE ASSESSEE POINTED OUT THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10.00 LAKHS AND FURTHER SUBMITTE D THAT IN VIEW OF THE CBDT CIRCULAR NO.21/2015, DATED 10.12.2015 BROUGHT OUT BY THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FI NANCE, GOVERNMENT OF INDIA, THE APPEAL WAS NOT MAINTAINABLE AND BE DISMISSED. T HE LD. DR ALSO AGREED TO THE SUBMISSION OF THE LD. AR. 3 ITA NO.1896/MUM/2014 (A.Y. 04-05) ITO VS. M/S. SHANTILAL MANILAL & SHAH 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND FROM THE RECORDS BEFORE US THAT THE TAX INV OLVED IN THE DISPUTED ISSUE IS BELOW RS.10 LACS AND THEREFORE, IN VIEW OF THE CIRC ULAR NO 21/2015 DATED 10 TH DECEMBER, 2015 NO APPEALS SHOULD BE FILED BY THE RE VENUE BEFORE THE TRIBUNAL WHICH HAS TAX EFFECT OF RS. 10.00 LACS OR LESS AND THIS CIRCULAR IS ALSO APPLICABLE RETROSPECTIVELY TO ALL PENDING APPEALS. THE RELEVAN T EXTRACT THE SAID CBDT CIRCULAR (SUPRA) IS AS UNDER:- THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PEN DING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDI NG APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. CONSIDERING THE ABOVE, THE APPEAL FILED BY THE R EVENUE, IS THEREFORE DISMISSED. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26TH FEBRUARY , 2016 SD/- SD/- (C.N.PRASAD) (RAJESH KUMAR) &' $ / JUDICIAL MEMBER $ / ACCOUNTANT MEMBER ( ) MUMBAI; *$ DATED :26.02.2016 PS. ASHWINI 4 ITA NO.1896/MUM/2014 (A.Y. 04-05) ITO VS. M/S. SHANTILAL MANILAL & SHAH / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT - CONCERNED 5. ./0 ''12 , 12# , ( ) / DR, ITAT, MUMBAI 6. 045 6 / GUARD FILE / BY ORDER, / !'# (DY./ASSTT. REGISTRAR) #$ %, ( ) / ITAT, MUMBAI.