INCOME TAX OFFICER, WARD-1-1, JAIPUR V. M/S GULAB CHAND GOPI CHAND IMPEX, JAIPUR

ITA 476/JPR/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7234 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 04-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “B”, JAIPUR Jh ,u-ds-lSuh] mik/;{k ,oa Jh lanhi x®lkÃa] U;kf;d lnL; ds le{k BEFORE: SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANDEEP GOSAIN, JM vk;dj vihy la-@ITA No. 476/JP/2019 fu/kZkj.k o"kZ@Assessment Year :2008-09 Income Tax Officer, Ward 1(1), Jaipur. cuke Vs. M/s Gulab Chand Gopi Chand Impex, 971, Nana Ji Ki Gali, Gopal Ji Ka Rasta, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AACFG 7060 N vihykFkhZ@Appellant izR;FkhZ@Respondent jktLo dh vksj ls@ Revenue by : Smt. Monisha Choudhary (JCIT) fu/kZkfjrh dh vksj ls@ Assessee by : None lquokbZ dh rkjh[k@ Date of Hearing : 30/11/2021 mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 30/11/2021 vkns'k@ ORDER PER: N.K. SAINI, VICE PRESIDENT This is an appeal by the Revenue against the order dt. 25/01/2019 of the Ld. CIT(A)-1, Jaipur. 2. Following grounds have been raised in this appeal. 1. Whether on the facts and circumstances of the case and in law the ld. CIT(A) was justified in estimating the net profit @ 7% against 25% of the bogus purchases disallowed by the AO following Hon’ble Supreme Court’s decision on bogus purchases in the case of Vijay Proteins Pvt. Ltd.? 2. Whether on the facts and circumstances of the case and in law, the ld. CIT(A) was justified in deleting the additions made on the basis of corroborative information received from Investigating Wing, Mumbai which is a law enforcement agency under the Ministry of Finance and accordingly the case falls under exception clause 10€ of Circular 03 of 2018 dated 20/08/2018. ITA 476/JP/2019_ ITO Vs M/s Gulab Chand Gopi Chand Impex 2 3. As per grounds of appeal, tax effect in respect of relief granted by the ld. CIT(A) works out to be less than Rs. 50.00 lacs, therefore, in view of the CBDT circular No. 17/2019 dated 08/08/2019 this appeal deserves to be dismissed. 4. CBDT Circular No. 17 of 2019 dated 08.08.2019 reads as under:- Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation. Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation. Appeals/SLPs in Income- tax matters Monetary Limit (Rs.) (previous limit) Monetary Limit (Rs.) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000  The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal ITA 476/JP/2019_ ITO Vs M/s Gulab Chand Gopi Chand Impex 3 shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit.  Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit.  In case where a composite order/ judgment involves more than one assessee, each assessee shall be dealt with separately.” 5. Since the tax effect is less than Rs. 50.00 lacs, the appeal of the revenue deserves to be dismissed. Before parting with the matter, it is made clear that the department is at liberty to file Misc. application, if the tax effect is found to be more than Rs. 50.00 lacs or the case falls in any of the exceptions of the Circular. 6. In the result, appeal of the revenue is dismissed. (Order pronounced on 30/11/2021 ) Sd/- Sd/- ¼lanhi x®lkÃa½ ¼,u-ds-lSuh½ (SANDEEP GOSAIN) (N.K. SAINI) U;kf;d lnL;@Judicial Member mik/;{k@Vice President Tk;iqj@Jaipur fnukad@Dated:- 30/11/2021 *Ranjan vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. vihykFkhZ@The Appellant- The Income Tax Officer, Ward 1(1), Jaipur. 2. izR;FkhZ@ The Respondent- M/s Gulab Chand Gopi Chand Impex, Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr¼vihy½@The CIT(A) ITA 476/JP/2019_ ITO Vs M/s Gulab Chand Gopi Chand Impex 4 5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZ QkbZy@ Guard File (ITA No. 476/JP/2019) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar