ITO 13(2)(1), MUMBAI V. SANDEEP NATVARLAL GOPANI, MUMBAI

ITA 5166/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1572 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 02-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R KIRTANE
• Assessee Lawyers: SUBHASH SHETTY
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NO.5166/MUM/2015 (ASSESSMENT YEAR 2009-10) THE INCOME TAX OFFICER, WARD -13(2)(1) R.NO.147, 1 ST FLOOR, AAYKAR BHAVAN,M.K.ROAD, MUMBAI 400 020 ...... A PPELLANT VS. SHRI SANDEEP NATVARLAL GOPANI, M/4, GOKUL BLDG., 2 ND FLOOR, IRON MARKET, MASJID BUNDER, MUMBAI 400 009 PAN:AABPG 4106E .... RESPO NDENT APPELLANT BY : SHRI S.R.KIRTANE RESPONDENT BY : SHRI SUBHASH SHETTY DATE OF HEARING : 01/12/2016 DATE OF PRONOUNCEMENT : 07/12/2016 ORDER THE CAPTIONED APPEAL FILED BY THE REVENUE PERTAI NING TO ASSESSMENT YEAR 2009-10 IS DIRECTED AGAINST AN ORDER PASSED BY CIT(A)-21, MUMBAI DATED 18/08/2015, WHICH IN TURN, ARISES OUT OF AN ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3)R.W.S 147 OF THE INCO ME TAX ACT, 1961 (IN SHORT THE ACT) DATED 14/03/2014. 2. IN THIS APPEAL, REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING ADDITION OF RS.36,23,363/- ON ACC OUNT OF NON-GENUINE PURCHASE AND 2 ITA NO.5166/MUM/2015 (ASSESSMENT YEAR 2009-10) RESTRICTING THE SAME TO RS.3,15,000/-, WHICH IS 8% OF SUCH NON-GENUINE PURCHASES, WITHOUT APPRECIATING THE FACT THAT IN SIMILAR DISAL LOWANCE AT 12.5% OF NON-GENUINE PURCHASE IS A REASONABLY ACCEPTABLE PROPOSITION? 3. AT THE TIME OF HEARING, THE LD. REPRESENTATIVE F OR THE ASSESSEE POINTED OUT THAT THE PERTINENT GRIEVANCE OF THE REVENUE IN THE ABOVE STATED GROUND OF APPEAL IS TO THE EFFECT THAT THE CIT(A) OUGHT TO HA VE RESTRICTED THE ADDITION ON ACCOUNT OF GENUINE PURCHASES TO THE EXTENT OF 12.50 % OF THE AMOUNT OF PURCHASES INSTEAD OF 8% DONE BY HIM. THE LD. REPRE SENTATIVE FOR THE ASSESSEE POINTED OUT THAT IN THIS VIEW OF THE MATTER, THE AMOUNT OF INCOME IN DISPUTE IS TO THE EXTENT OF RS.1,77,295/-, WHICH SHOWS THAT TH E EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10.00 LACS PRESCRIBED IN T HE CBDT CIRCULAR NO.21/2015 DATED 10/12/2015, WHICH HAS REVISED THE MONETARY LI MITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL RETROSPECTIVE LY. THE LD. DEPARTMENTAL REPRESENTATIVE HAS NOT DISPUTED THE AFORESAID FACT- SITUATION. SINCE THE TAX EFFECT IN DISPUTE IN THE CAPTIONED APPEAL IS STATED TO BE BELOW THE MONETARY LIMIT OF RS.10.00 LACS SPECIFIED IN THE CBDT CIRCUL AR DATED 10/12/2015 (SUPRA), THE SAME IS DISMISSED AS NOT MAINTAINABLE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/12/2016 SD/- (G.S.PANNU) ACCOCUNTANT MEMBER MUMBAI, DATED 07/12/2016 VM , SR. PS 3 ITA NO.5166/MUM/2015 (ASSESSMENT YEAR 2009-10) 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