ITO 22(1)(5), MUMBAI V. HEERA C. GUJRANI, MUMBAI

ITA 2246/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9753 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 10-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHOOPATHILD
• Assessee Lawyers: NITESH JOSHI LD
• Keywords: Bogus purchase; Tax effect

Judgement Text

ITA NO.2246-2247/MUM/2019 ASSESSMENT YEARS: 2009-10 & 2010-11 HEERA C. GUJRANI 1 IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) 1. ./ I.T.A. NO.2246/MUM/2019 ( / ASSESSMENT YEAR : 2009-10 ) & 2. ./ I.T.A. NO.2247/MUM/2019 ( / ASSESSMENT YEAR : 2010-11 ) INCOME TAX OFFICER - 22(1)(5) 323 3 RD FLOOR PIRAMAL CHAMBERS LAL BAUG PAREL MUMBAI - 400012 / VS. SHRI HEERA C. GUJRANI 102, 1 ST FLOOR, SHREE SHAKTI 14 TH ROAD, KHAR (WEST) MUMBAI-400 052. '(! ./ ./PAN/GIR NO. ACQPG-4540-D ( (* /APPELLANT ) : ( +,(* / RESPONDENT ) ASSESSEE BY : SHRI NITESH JOSHI-LD. AR REVENUE BY : SHRI BHOOPATHI-LD. DR / DATE OF HEARING : 25/06/2020 / DATE OF PRONOUNCEMENT : 25/06/2020 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEALS BY REVENUE FOR ASSESSMENT YEAR S 2009-10 & 2010-11 CONTEST SEPARATE ORDERS OF LEARNED FIRST AP PELLATE ORDER BOTH ITA NO.2246-2247/MUM/2019 ASSESSMENT YEARS: 2009-10 & 2010-11 HEERA C. GUJRANI 2 DATED 27/12/2018, APPEAL NOS. CIT(A)-34/ITO-22(1)(5 )/IT-79 & 80/2016- 17. 2. THE LEARNED COUNSEL FOR ASSESSEE SHRI NITESH JOS HI, AT THE OUTSET, SUBMITTED THAT THE TAX EFFECT OF QUANTUM ADDITIONS BEING CONTESTED BY THE REVENUE UNDER BOTH THE APPEALS IS LESS THAN THE THR ESHOLD LIMIT OF RS.50 LACS AND THEREFORE, BOTH THE APPEALS ARE TO BE DISM ISSED IN VIEW OF LOW TAX EFFECT CIRCULAR NO. 17/2019 DATED 08/08/2019 [F .NO.279/MISC. 142/2007-TTJ(PT.) ISSUED BY CBDT. THE COMPUTATIONS OF TAX EFFECT FOR BOTH THE YEARS HAVE BEEN PLACED BEFORE THE BENCH TH ROUGH EMAIL. 3. THE LD. DR COULD NOT CONTROVERT THE SAID FACT BU T SUBMITTED THAT THE ADDITIONS WERE MADE ON ACCOUNT OF BOGUS PURCHASES O N THE BASIS OF INFORMATION RECEIVED FROM INVESTIGATION WING OF THE DEPARTMENT. 4. UPON CAREFUL CONSIDERATION OF CASE RECORDS, WE C ONCUR WITH LD. ARS SUBMISSIONS THAT THE TAX EFFECT OF QUANTUM ADD ITIONS BEING CONTESTED BY THE REVENUE FOR BOTH THE YEARS IS, PRIMA-FACIE, BELOW THRESHOLD MONETARY LIMIT OF RS.50 LACS AND THE APPE ALS ARE NOT MAINTAINABLE IN TERMS OF RECENTLY ISSUED LOW TAX EF FECT CIRCULAR NO. 17/2019 DATED 08/08/2019 [F.NO.279/MISC. 142/2007-T TJ(PT.) ISSUED BY CBDT. THIS RECENT CIRCULAR FURTHER ENHANCES THE MON ETARY LIMIT FIXED IN EARLIER CIRCULAR NO.3 OF 2018 DATED 11/07/2018 ISSU ED BY CBDT AS AMENDED ON 20/08/2018. IN VIEW OF THE SAME, BOTH T HE APPEALS ARE NOT MAINTAINABLE. NO EXCEPTION COULD BE POINTED OUT. TH E INVESTIGATION ARM OF THE INCOME TAX DEPARTMENT IS AN INTERNAL ORGAN O F THE DEPARTMENT AND THEREFORE, THE SAME WOULD NOT FALL UNDER THE CA TEGORY OF EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES A S ENVISAGED BY CLAUSE 10(E) OF THE SAID CIRCULAR. ITA NO.2246-2247/MUM/2019 ASSESSMENT YEARS: 2009-10 & 2010-11 HEERA C. GUJRANI 3 5. AT THE SAME TIME, A LIBERTY IS GIVEN TO REVENUE TO SEEK RECALL OF ANY OF THE APPEALS, IF AT A LATER STAGE, IT IS FOUND TH AT THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN ANY OF THE CIRCULAR OR I N CASE THE TAX EFFECT AS AGITATED BY REVENUE, IN ANY OF THE APPEALS, EXCEEDS THE PRESCRIBED MONETARY LIMIT. 6. IN THE RESULT, BOTH THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JUNE, 2020. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 25/06/2020 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. (* / THE APPELLANT 2. +,(* / THE RESPONDENT 3. ! !3 ( ) / THE CIT(A) 4. ! !3 / CIT CONCERNED 5. 45!+.6 , !!6 , / DR, ITAT, MUMBAI 6. 5789 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.