INCOME TAX OFFICER 20(3)(3), MUMBAI V. SMT.SHEETAL R SAVLA, MUMBAI

ITA 4266/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2947 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 20-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITNYA ANJARIA
• Assessee Lawyers: DINESH SHAH; SHREYA DOSHI ARS
• Keywords: Accommodation entries; Tax effect
• Section: 143(3); 68

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL SMC BENCH MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH JUDICIAL MEMBER ITA NO. 4266/MUM/2018 (ASSESSMENT YEAR 2013-14 ) ITO 20(3)(3), 6 TH FLOOR ROOM NO. 614, PIRAMAL CHAMBERS, LALBAUG PAREL MUMBAI , VS. SMT SHEETALR SAVLA , 11, VIKRAM MANSION , 449 MAHIRA ASHRAM ROAD, KINGS CIRCLE, MATUNGA MUMBAI 400019 PAN: ADXHPK 2176R APPELLANT RESPONDENT ASSESSEE BY : SHRI DINESH SHAH & MISS SHREYA DOSHI (ARS) REVENUE BY : SHRI CHAITNYAANJARIA (DR) DATE OFHEARING : 06.08.2019 DATE OF PRONOUNCEME NT : 06 .08.2019 ORDERUNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER ; 1. THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-32 [HEREINAFTE R REFERRED AS THE LD. CIT(A)], MUMBAI DATED 26 MARCH 2018, WHICH IN T URN ARISES FROM THE ASSESSMENT ORDER DATED 23 RD MARCH 2016 PASSED UNDER SECTION 143(3) OF THE ACT. THE ASSESSEE HAS RAISED THE FOL LOWING GROUNDS OF APPEAL: (I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, LEARNED COMMISSIONER(APPEALS) FAILED TO APPRECIATE THE FACT THAT THE ADDITION OF 35,50,000/-MADE BY ASSESSING OFFICER UNDER SECTION 68 WAS ON THE BASIS SWORN STATEMENT OF SH. PRAVEEN KUMAR JAIN , RECORDED DURING THE COURSE OF SEARCH PROCEEDINGS. ITA NO. 4266/MUM/2018 SMT. SHEETAL R SALVA (AY 2013-14) 2 (II) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LEARNED COMMISSIONER (APPEALS) FAILED TO APPRECIATE THE FAC T THAT M/S DUKE BUSINESS PRIVATE LIMITED AND JOS TRADING PRIVATE LI MITED WERE COMPANIES WHICH WERE IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES, FROM WHOM THE ASSESSEE HAD OBTAINED ACCOMM ODATION ENTRIES IN THE NATURE OF UNSECURED LOAN . 2. AT THE OUTSET OF HEARING THE LEARNED AR OF THE ASSE SSEE SUBMITS THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEALS IS LESS THAN THE MONETARY LIMIT OF TAX EFFECT FIXED BY CENTRAL BOARD OF DIREC T TAXES(CBDT) IN ITS CIRCULAR NO. 3 DATED11 TH JULY 2018, AND THUS THE REVENUE IS PRECLUDED FROM FILING AND PURSUING THE PRESENT APPE AL. ACCORDINGLY, THE LEARNED AR OF THE ASSESSEE PRAYED THAT THE APPE AL OF THE REVENUE MAY BE DISMISSED DUE TO LOWER TAX EFFECT. 3. ON THE OTHER HAND, THE LEARNED DR FOR THE REVENUE A FTER PERUSAL OF THE GROUNDS OF APPEAL, FAIRLY CONCEDED THAT THE TAX EFF ECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT FIXE D BY CBDT IN ITS CIRCULAR NO. 3/2018, DATED 11 TH JULY 2018. 4. CONSIDERING THE SUBMISSION OF BOTH THE PARTIES THE APPEAL OF THE REVENUE IS DISMISSED FOR THE REASONS THAT THE REVEN UE IS PRECLUDED FROM FILING APPEAL BEFORE THE TRIBUNAL AS DUE TO THE TAX EFFECT INVOLVED IN THE PRESENT APIECE IS BELOW THE MONITOR LIMIT FIXED BY CBDT. HOWEVER, THE REVENUE IS GRANTED LIBERTY TO REVIVE T HE APPEAL IF A LATER STAGE IT IS DISCOVERED THAT THE PRESENT APPEAL IS C OVERED BY ANY EXCEPTION CLAUSE PROVIDED IN THE CIRCULAR OF CBDT. ITA NO. 4266/MUM/2018 SMT. SHEETAL R SALVA (AY 2013-14) 3 5. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING SD/- SD/- SHAMIM YAHYA PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 06.08.2019 SK COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. DR SMC BENCH, ITAT, MUMBAI 6. GUARD FILE BY ORD ER, DY./ASST.REGISTRAR ITAT, MUMBAI