Income-Tax Officer, Ward 4(5), Pune V. Pune Pumps Sales & Services, Pune

ITA 402/PUN/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 7266 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 27-01-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 05-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NOS. 401 & 402/PUN/2020 / ASSESSMENT YEARS : 2009-10 & 2010-11 ITO, WARD-4(5), PUNE VS. PUNE PUMPS SALES & SERVICES, 529/1, SHRADDHA CHAMBERS, SINHGAD ROAD, PARVATI, DIST. PUNE 411 030 PAN : AADCP1318A APPELLANT RESPONDENT / ORDER THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAINST TH E SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEA LS)-2, PUNE DATED 18-02-2020 & 19-02-2020 IN RELATION TO THE ASSE SSMENT YEARS 2009-10 & 2010-11 RESPECTIVELY. AT THE OUTSET, IT HA S BEEN FAIRLY ADMITTED BY THE LD. DR THAT THE TAX EFFECT IN THESE TWO AP PEALS IS LESS THAN RS.50.00 LAKH. HOWEVER, THE LD. DR SUBMITTED THAT THE ADDITIONS IN THESE APPEALS ARE BASED ON THE INFORMATION RECE IVED BY THE ASSESSING OFFICER FROM THE SALES TAX DEPARTMENT THAT THE ASSESSEE WAS ONE OF THE BENEFICIARIES INDULGING IN THE HAWALA TRANSACTIONS. IT WAS ERGO PRAYED THAT THE APPEALS FALL UNDER APPELLANT BY SHRI S.P. WALIMBE RESPONDENT BY NONE DATE OF HEARING 27-01-2021 DATE OF PRONOUNCEMENT 27-01-2021 ITA NOS. 401 & 402/PUN/2020 PUNE PUMPS SALES & SERVICES 2 EXCEPTION PRESCRIBED IN CLAUSE (E) OF PARA 10 OF THE CBDT CIRCULAR NO. 03/2018 DATED 11-07-2018 READ WITH ITS AMENDMENT DATED 20- 08-2018 AND HENCE SHOULD NOT BE DISMISSED ON THIS PRELIMINA RY ISSUE. 2. I HAVE HEARD THE LD. DR THROUGH VIRTUAL COURT AND SC ANNED THROUGH THE RELEVANT MATERIAL ON RECORD. THERE IS NO APP EARANCE FROM THE SIDE OF ASSESSEE DESPITE SERVICE OF NOTICE. THE CBDT HAS ISSUED CIRCULAR NO.17/2019 DATED 08-08-2019 REVISING UPWAR D THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT IN IN COME- TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER C IRCULAR NO.03/2018 DATED 11-07-2018 FIXED MONETARY LIMIT FOR FILING OF APPEALS BY THE REVENUE BEFORE THE TRIBUNAL AT RS.20.00 LAK H. SUCH LIMIT HAS NOW BEEN ENHANCED IN THE CIRCULAR DATED 08-08-20 19 TO RS.50.00 LAKH. SINCE TAX EFFECT IN THE INSTANT APPEALS IS LESS THAN THE REVISED MONETARY LIMIT OF RS.50.00 LAKH, I AM NOT INCLINED TO ENTERTAIN THE APPEALS OF THE REVENUE. 3. AS REGARDS THE CONTENTION OF THE LD. DR THAT THE APPE ALS SHOULD NOT BE DISMISSED BECAUSE THE ADDITIONS IN THESE CASES WERE MADE ON THE BASIS OF INFORMATION RECEIVED FROM THE SALES TAX DEPARTME NT ABOUT THE ASSESSEE INDULGING IN HAWALA TRANSACTIONS, I FIND TH AT SUCH ITA NOS. 401 & 402/PUN/2020 PUNE PUMPS SALES & SERVICES 3 A CONTENTION HAS NOT BEEN COUNTENANCED BY THE PUNE BENCHES OF THE TRIBUNAL IN SEVERAL CASES INCLUDING ITO VS. M/S PARAM MARKETIN G ( ITA NO.1872/PUN/2019 DT.30-01-2020 ) AND ITO VS. YUSUF GULMMOHMMED PATEL ( ITA NO.1852/PUN/2019 DT.30-01-2020 ). NOT ONLY THAT, EVEN THE MISCELLANEOUS APPLICATION FILED U/S 254(2) ON THIS ISSUE HAS ALSO BEEN DISMISSED IN DCIT VS. M/S RANG RASA YAN ( M.A.NO.60/PUN/2019 DT. 14-01-2020 ). NO CONTRARY VIEW HAS BEEN BROUGHT TO MY NOTICE ON BEHALF OF THE REVENUE. RESPECTFULLY FOLLOWING THE ABOVE PRECEDENT, I DISMISS THE APPEALS FILED BY THE REVENUE. 4. IT IS HOWEVER CLARIFIED THAT THE DEPARTMENT WILL BE AT LIB ERTY TO PRAY FOR THE RESTORATION OF THE APPEALS IF IT FINDS THE CASES COVERED UNDER ANY OTHER EXCEPTION CLAUSE OF THE CIRCULAR. 5. IN THE RESULT, THE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH JANUARY, 2021. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 27 TH JANUARY, 2021 SATISH ITA NOS. 401 & 402/PUN/2020 PUNE PUMPS SALES & SERVICES 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, PUNE 4. THE PR. CIT-2, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 27-01-2021 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 27-01-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *