DCIT CEN CIR 7(3), MUMBAI V. SUNSHINE IMPORT & EXPORT P. LTD, MUMBAI

ITA 4729/MUM/2015

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6501 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 20-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK A PERAMPURNA
• Keywords: Accommodation entries; Tax effect
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E , MUMBAI BEFORE S HRI SHAMIM YAHYA ( AM ) AND SHRI RAM LAL NEGI (JM) ITA NO. 4729/MUM/2015 ASSESSMENT Y EAR: 2008 - 09 THE DCIT CC - 7(3), ROOM NO. 655, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 VS. M/S SUNSHINE IMPORT & EXPORT PVT. LTD., 28/3, SHREE RAMNIWAS, 1 ST BHATWADI, OPERA HOUSE, MUMBAI - 400004 PAN: AALCS1023K (APPELLANT) (RESPONDENT) REVENUE BY : SHRI VIVEK A. PERAM PURNA (D R) ASSESSEE BY : SHRI VIMAL PUNMIYA (A R) DATE OF HEARING: 15/02 /201 9 DATE OF PRONOUNCEMENT: 19 / 02 /201 9 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER DATED 29.05.2015 PASSED BY THE COMMISS IONER OF I NCOME TAX (APPEALS) - 49 (FOR SHORT THE CIT (A)) , MUMBAI, FOR THE ASSESSMENT YEAR 2008 - 09 , WHEREBY THE LD. CIT (A) HAS PARTLY ALLOWED THE APPEAL FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER PASSED U/S 143 (3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 ( FOR SHORT THE ACT). 2. THE REVENUE HAS PREFERRED THE PRESENT APPEAL BY RAISING THE FOLLOWING EFFECTIVE GROUND : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN THE LAW, THE LD. CIT (A) ERRED IN DELETING THE ADDITION OF COMMISSION MADE IN THE A. Y. 2008 - 09 OF RS. 35,43,200/ - FOR PROVIDING ACCOMMODATION ENTRIES OF DOMESTIC PURCHASES WITHOUT APPRECIATING THE FACT THAT 2 ITA NO . 4729/MUM/2015 ASSESSMENT YEAR: 2008 - 09 DURING THE COUR SE OF THE SEARCH, THE ASSESSEE HAD STATED THAT THERE WAS NO REAL SALE AND PURCHASE TRANSACTION AND HE WAS ENGAGED IN T HE ACTIVITY OF PROVIDING ACCOMMODATION ENTRIES OF SALES AND PURCHASES. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE RESPONDENT/ASSESSEE POINTED OUT THAT THE TAX EFFECT OF THE RELIEF GRA NTED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS BELOW RS.20 LA CS AND AS PER THE CBDT CIRCULAR NO. 3/2018, F. NO. 279/MISC.142/2007 - ITJ (PT) DATED 11 TH JULY, 2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA LIMIT FIXED BY THE CBDT FOR FILING THE APPEAL BEFOR E THE ITAT IS 20 LACS . 4. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) FAIRLY CONCEDED THAT TH IS APPEAL IS NOT MAINTAINABLE IN LIGHT OF THE ABOVE SAID CBDT CIRCULAR. THE LD. DR ALSO DID NOT POINT OUT THAT TH IS APPEAL FALL S IN ANY OF THE EXCEPTIONS CARVED OUT IN THE ABOVE SAID CIRCULAR. 5. WE HAVE GONE THROUGH THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) AND THE GROUNDS OF APPEALS. WE FIND THAT THE TAX EFFEC T IN THE ABOVE REFERRED APPEAL IS LESS THAN RS. 20 LACS. ACCORDINGLY, W E DISMISS THE AFORES AID APPEAL FILED BY THE REVENUE. IN THE RESULT, APPEAL FILED BY THE REVENUE FOR ASSESSMENT YEAR 2008 - 09 IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY , 2019 . SD/ - SD/ - ( SHAMIM YAHYA ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 19 / 02 / 201 9 ALINDRA, PS 3 ITA NO . 4729/MUM/2015 ASSESSMENT YEAR: 2008 - 09 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT( A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI