The ITO, Ward-3(1)(3), Ahmedabad V. Balajay Infrastructure Private Limited, Ahmedabad

ITA 290/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8877 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-09-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 02-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVATIA; MEHUL TALERA ARS
• Keywords: Bogus purchase; Tax effect
• Section: 143(3)

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 290/AHD/2017 ( / ASSESSMENT YEAR: 2013-14) ITO WARD- 3(1)(3), 4 TH FLOOR, 403B-WING, PRATYAKSH KAR BHAVAN, NR. POLYTECHNIC COLLEGE, AMWABADI, AHMEDABAD- 380015 / VS. BALAJAY INFRASTRUCTURE PVT. LTD. 303, ASHIRWAD PARAS, 100 FEET ROAD, NR. CORPORATE ROAD, NR. PRAHLADNAGAR GARDEN CROSS ROAD, SATELLITE, AHMEDABAD- 380015 ./ ./PAN/GIR NO. : AAE CB7 865 K ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VINOD TANWANI, SR. DR / RESPONDENT BY: SHRI S. N. DIVATIA & MEHUL TALERA, ARS !' /DATE OF HEARING 13/09/2019 #$!' / DATE OF PRONOUNCEMENT 23/09/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2013-14, A RISE FROM ORDER OF THE CIT(A)-9, AHMEDABAD DATED 20.12.2016, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN GRA NTING THE RELIEF OF RS. 1,70,08,446/- OUT OF ADDITION OF RS. 2,26,77,928/- MADE BY THE AO FOR BOGUS PURCHASES WITHOUT APPRECIATING THE FINDINGS AS RECO RDED BY THE AO AND RELYING ON THE DECISION OF M/S. N. K. PROTEINS LTD. OF THE HONBLE TRIBUNAL, AHMEDABAD. ITA NO. 290/AHD/2017 [ITO VS. BALAJAY INFRASTRUCTU RE PVT. LTD.] A.Y. 2013-14 2 2. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT OBTAINING THE REMAND REPORT FROM THE AO FOR ASCERTAINING THE ACTUAL ACQU ISITION OF THE MATERIAL USED OUT OF PURCHASES FROM OTHER SELLERS WITHOUT OB TAINING THE BILLS AND MAKING OF CONSEQUENT PAYMENTS AND GRANTED RELIEF OF 75% OF BOGUS PURCHASES PROVED BY THE AO. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF TH E ASSESSING OFFICER. 4. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. COMMISSIONER OF INCOME TAX (A) MAY BE SET-ASIDE AND THAT OF THE ASS ESSING OFFICER BE RESTORED. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 23/09/2019 TANMAY TRUE COPY THIS ORDER PRONOUNCED IN OPEN COURT ON 23/09/2019 ITA NO. 290/AHD/2017 [ITO VS. BALAJAY INFRASTRUCTU RE PVT. LTD.] A.Y. 2013-14 3 / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 16.09.2019 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 16.09.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 23.09.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 16.09.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 23.09.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23.09.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER