ACIT, Wardha Circle , Wardha V. M/s Automark Technologies (India ) Limited, Yavatmal

ITA 403/NAG/2019

AI Insights

The case involves the Assistant Commissioner of Income Tax, Wardha Circle, as the appellant, and M/s. Automark Technologies (India) Limited, as the respondent. The dispute arose from the assessment year 2009-10, concerning the reopening of a case under section 143(3) read with section 147 of the Income Tax Act, 1961. The Revenue challenged the CIT(A)'s order which directed the deletion of additions made under section 68, alleging that the assessee failed to prove the genuineness and creditworthiness of the companies involved in the transactions. The Tribunal dismissed the appeal based on the tax effect threshold and found no substantial grounds to overturn the CIT(A)'s decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131925 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 08-12-2019
• Other Referred Cases: CIT-vs- Yuvraj 315 ITR 84 (Bom)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Reason to believe
• Section: 68; 143(3)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCHES : NAGPUR (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.403/Nag./2019 Assessment Year 2009-2010 Assistant Commissioner Of Income Tax Wardha Circle, Wardha vs. M/s. Automark Technologies (India) Limited Gurukirpa Datta Square, Nagpur - 442001 PAN: AADCA4932F (Appellant) (Respondent) For Assessee : Shri P. M. Gandhi, CA For Revenue : Shri Sanjay Agrawal, DR Date of Hearing : 31.08.2023 Date of Pronouncement : 22.09.2023 ORDER PER SATBEER SINGH GODARA, J.M. This Revenue’s appeal for A.Y. 2009-10, arises against the CIT(A)-2, Nagpur’s order dated 03.09.2019, passed in Case No.CIT(A)-2/107/2017-18, in proceedings under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 [“In short Act”]. 2. Heard both the parties. Case file perused. 3. The Revenue raises the following substantive grounds in the instant appeal: 1. "Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in holding that re-opening of the case was merely a change of opinion contrary to the view of judgment by Honorable Bombay High Court in the case of CIT-vs- Yuvraj 315 ITR 84 (Bom) inspite of the fact that AO had received specific information that equity plus premium received by assessee is bogus and there was reason to believe that income has escaped assessment. 2 ITA.No.403/Nag./2019 (ACIT vs. M/s. Automark Technologies (India) Limited 2. Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in direction the AO to delete the additions to the tune of Rs.49,50,000/- made u/s 68 of the IT Act, 1961 inspite of the fact that the assessee could not prove genuineness of the transaction and credit worthiness of companies.” 4. The Revenue could hardly dispute the clinching fact that its sole substantive grievance seeking to revive Section 68 unexplained cash credit addition of Rs.49.50 lakhs; involves less than the minimum prescribed tax effect threshold limit of Rs.50 lakhs as per the CBDT’s latest Circular No.17 of 2019 dated 08/08/2019 made applicable to all pending appeals as well. The Revenue could hardly dispute any exception thereto in its above extracted grounds. This appeal is rejected in very terms. Ordered accordingly. 5. This Revenue’s appeal is dismissed in above terms. Order pronounced in the open court on 22.09.2023 Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 22.09.2023 S.K.SINHA True Copy Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(A) concerned. 4. The CIT concerned 5. D.R. ITAT, Nagpur Bench, Nagpur 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.