ITO, 26(2)(3), MUMBAI V. MOHAMMED AKRAM ISRIAL KASIM KHAN, MUMBAI

ITA 3276/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6462 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 15-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Keywords: Bogus purchase; Tax effect

Judgement Text

, ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 3275 / /201 9 ((. . 2010-11 ) ITA NO. 3275/MUM/2019 (A.Y.2010-11) . 3276 / /201 9 ((. . 2011-12 ) ITA NO. 3276/MUM/2019 (A.Y.2011-12) . 3277 / /201 9 ((. . 2009-10 ) ITA NO.3277/MUM/2019 (A.Y.2009-10) INCOME TAX OFFICER-26(2)(3), 3 RD FLOOR, ROOM NO.317, KAUTILYA BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI 400 051 / VS. MOHAMMED AKRAM ISRIAL KASIM KHAN, PROP. M/S. AVAD ENGINEER, 1 ST LANE, DARUKHANA, PLOT NO.62, AMAL BHAGWAN JAIN COMPOUND, REAY ROAD, MUMBAI 400 010 PAN/GIR NO:AMOPK2000J ( /APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : MS KAVITA P. KAUSHIK / DATE OF HEARING : 15/09/2020 / DATE OF PRONOUNCEMENT : 15/09/2020 / ORDER THESE THREE APPEALS BY THE REVENUE ARE DIRECTED AG AINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 8, MUMBAI [I N SHORT THE CIT(A)] FOR THE ASSESSMENT YEARS 2010-11, 2011-12 AND 2009-10, RESPECTIVELY. ALL THE THREE IMPUGNED ORDERS ARE OF EVEN DATE I.E. 30/11/2 018. 2 ITA NO.3275-3277/MUM/2019 (A.Y 2010-11,2011-12 & 2009-10) 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADI NG IN STEEL. THE ASSESSING OFFICER HELD THAT THE ASSESSEE HAS INDULGED IN OBTA INING BOGUS PURCHASE BILLS FROM THE HAWALA DEALERS IN THE IMPUGNED ASSESSMENT YEARS AND MADE ADDITION OF 25% OF THE BOGUS PURCHASES:- ASSESSMENT YEAR ADDITION MADE BY A.O (IN. RS.) 2009-10 33,46,649/- 2010-11 23,04,751/- 2011-12 5,61,729/- AGGRIEVED BY THE ADDITIONS, THE ASSESSEE FILED APPE AL BEFORE THE CIT(A). THE CIT(A) GRANTED PART RELIEF TO THE ASSESSEE BY RESTR ICTING THE ADDITION TO 12.5% OF THE AGGREGATE ALLEGED BOGUS PURCHASES. THUS, THE CI T(A) DELETED 50% OF THE ADDITION MADE BY ASSESSING OFFICER. 3. MS. KAVITA P. KAUSHIK, REPRESENTING THE DEPARTME NT FAIRLY ADMITTED THE TAX EFFECT INVOLVED IN THESE APPEALS IS LESS THAN T HE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO. 17/2019, DATED 08-08- 2019 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY T HE DEPARTMENT. 4. THE TAX EFFECT IN THE PRESENT APPEALS (AS DECLAR ED IN FORM 36) BY THE DEPARTMENT BEFORE THE TRIBUNAL IS: ASSESSMENT YEAR TAX EFFECT 2009-10 RS.5,17,057/- 2010-11 RS. 3,56,084/- 2011-12 RS.86,786/- 3 ITA NO.3275-3277/MUM/2019 (A.Y 2010-11,2011-12 & 2009-10) UNDISPUTEDLY, THE TAX EFFECT IS LESS THAN THE MONET ARY LIMIT PRESCRIBED BY THE CBDT FOR FILING OF APPEALS BEFORE THE TRIBUN AL. THE CBDT VIDE CIRCULAR DATED 08-08-2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO. 3 OF 2018 DATED 11-07-2018 THEREBY ENHANCING MONETA RY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERITS OF THE ISSUE RAISED IN THE APPEALS, THE PRESENT APPEAL S BY THE REVENUE ARE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL( S), WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL(S) IS/AR E PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DA TED 11-07-2018 AND ITS AMENDMENT DATED 20/08/2018. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT AT THE CONCLUSIO N OF HEARING ON TUESDAY THE 15 TH DAY OF SEPTEMBER, 2020. SD./- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, +(/ DATED: 15/09/2020 VM , SR. PS(O/S) 4 ITA NO.3275-3277/MUM/2019 (A.Y 2010-11,2011-12 & 2009-10) COPY OF THE ORDER FORWARDED TO : 1. , / THE APPELLANT , 2. -. / THE RESPONDENT. 3. /. ( )/ THE CIT(A)- 4. /. CIT 5. 01-.( , . . . , / DR, ITAT, MUMBAI 6. 12345 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI