ITO WD 2(2), KALYAN V. MAHESH K LALWANI, ULHASNAGAR

ITA 2838/MUM/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3568 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2016
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 13-05-2015
• Court: TRIBUNAL
• Assessee Lawyers: PLA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO.2838/M/2015 (ASSESSMENT YEAR: 2010 - 2011 ) ITO - 2(2), 2 ND FLOOR, MOHAN PLAZA, WAYALE NAGAR, KHADAKPADA KALYAN, DISTRICT THANE, KALYAN. / VS. SHRI MAHESH K. LALWANI, PROP. OF M/S. SAI SALES, R.NO.67, PADMA NIWAS, OLD PLOT NO.883, OLD BHAJI MARKET, ULHASNAGAR - 421003. ./ PAN : ABYPL0389A ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI AJAY, DR / RESPONDENT BY : NONE / DATE OF HEARING : 01.07.2016 / DATE OF PRONOUNCEMENT : 01 .07.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF THE CIT (A) - 3 MUMBAI DATED 13.02.2015 FOR THE ASSESSMENT YEAR 2011 - 2012 . IN THIS APPEAL, REVENUE RAISED THE FOLLOWING SOLITARY GROUNDS IN THIS APPEAL WHICH READS AS UNDER: - THE CIT (A) ERRED IN LAW AS WELL AS ON FACTS OF THE CASE AND HAS APPLIED THE RATIO OF 25% ON THE HAWALA PURCHASES THEREBY UPHOLDING ADDITION TO THE EXTENT OF RS. 8,91,941/ - (25% RS. 35,09,500/ - ) AND DELETING THE REST OF THE ADDITIONS OF RS. 26,75,824/ - . HOWEVER, THE LD CIT (A ) HAS HIMSELF OBSERVED IN PARA 5 OF THE APPELLATE ORDER THAT THE ASSESSEE HAS FAILED TO FURNISH THE COPY OF LEDGER ACCOUNTS FROM THE SUPPLIERS. THE ASSESSEE HAS NOT BEEN ABLE TO PRODUCE PARTIES IN PERSON AND NO CORROBORATIVE EVIDENCE SUCH AS INWARD REGIST ER, OUTWARD REGISTER, DELIVER CHALLANS, OCTROI RECEIPTS ETC WERE PRODUCED TO JUSTIFY THE GENUINENESS OF PURCHASES. 2. BEFORE ME, LD COUNSEL FOR THE ASSESSSEE BRIEFLY NARRATED THE FACTS OF THE CASE AND DEMONSTRATED THAT THE TAX EFFECT IN THIS CASE COMES TO BELOW RS. 10 LAKHS. THEREFORE, THIS IS COVERED BY THE CBDT CIRCULAR NO.21/2015, DATED 10.12.2015 WHICH IS RELEVANT FOR THE PROPOSITION THAT THE APPEALS FILED BY THE REVENUE WITH A TAX EFFECT OF RS. 10 LAKHS AND BELOW ARE TO BE EITHER DISMISSED BY THE TRI BUNAL AS NOT MAINTAINABLE OR NOT PRESSED BY THE REVENUE. 2 3 . AFTER HEARING BOTH THE PARTIES, I AM OF THE OPINION, CONSIDERING THE LOW TAX EFFECT INVOLVED IN THE PRESENT CASE WHICH IS BELOW RS. 10 LAKHS, THE INSTANT APPEAL FILED BY THE REVENUE IS REQUIRED TO BE DISMISSED SINCE, THE SAME IS NOT MAINTAINABLE. I ORDER ACCORDINGLY. 4 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01 ST JULY , 2016. SD/ - (D. KARUNAK ARA RAO) ACCOUNTANT MEMBER MUMBAI ; 1.07 .2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI