DCIT - 13 (1)(1), MUMBAI V. NIHAAR EQUIPMENT PVT. LTD., MUMBAI

ITA 5706/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8937 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 05-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIKLD
• Assessee Lawyers: MANOJ MUNDRALD
• Keywords: Bogus purchase; Tax effect

Judgement Text

ITA NO.5706/MUM/2018 M/S. NIHAAR EQUIPMENT PRIVATE LIMITED ASSESSMENT YEAR :2013-14 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.5706/MUM/2018 ( / ASSESSMENT YEAR : 2013-14 ) D CIT - 13(1)(1) 2 ND FLOOR, ROOM NO.218 AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020 . / VS. M/S. NIHAR EQUIPMENT PVT. LTD. 117 CD, GOVT. INDUSTRIAL ESTATE KANDIVALI WEST MUMBAI- 400 067. $% ./ ./PAN/GIR NO. AABCN-9153-B ( %' /APPELLANT ) : ( ()%' / RESPONDENT ) ASSESSEE BY : SHRI MANOJ MUNDRA-LD.AR REVENUE BY : MS. KAVITA P. KAUSHIK LD. DR / DATE OF HEARING : 14/01/2020 / DATE OF PRONOUNCEMENT : 14/01/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. IN THE AFORESAID APPEAL FOR ASSESSMENT YEAR (AY) 2013-14, THE REVENUE IS AGGRIEVED BY DELETION OF PENALTY OF RS.2 7,208/- BY LEARNED FIRST APPELLATE AUTHORITY. THE PENALTY UNDER DISPUT E WAS LEVIED BY LD. AO VIDE PENALTY ORDER DATED 27/03/2017 AGAINST ESTIMAT ED ADDITIONS @ 12.5% OF ALLEGED BOGUS PURCHASES. ITA NO.5706/MUM/2018 M/S. NIHAAR EQUIPMENT PRIVATE LIMITED ASSESSMENT YEAR :2013-14 2 2. UPON PERUSAL OF CASE RECORDS, IT TRANSPIRES THAT THE QUANTUM OF PENALTY UNDER DISPUTE, BEING CONTESTED BY THE REVEN UE, IS LESS THAN PRESCRIBED LIMIT OF RS.50 LACS AND THE APPEAL IS CO VERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.17/2019 DATED 08/ 08/2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THIS RECENT C IRCULAR FURTHER ENHANCES THE MONETARY LIMIT FIXED IN EARLIER CIRCUL AR NO.3 OF 2018 DATED 11/07/2018 ISSUED BY CBDT AS AMENDED ON 20/08/2018. SO FAR AS THE CONTENTIONS RAISED BY LD. DR ARE CONCERNED, WE ARE OF THE CONSIDERED OPINION THAT QUANTUM PROCEEDINGS AND PENALTY PROCEE DINGS WERE SEPARATE PROCEEDINGS AND THE CIRCULAR WOULD APPLY T O EACH PROCEEDING SEPARATELY. NO SEPARATE EXCEPTION HAS BEEN PROVIDED IN ANY OF THE CIRCULAR WITH RESPECT TO QUANTUM OF PENALTY. IN VIE W OF THE SAME, WE DISMISS THE APPEAL. 3. AT THE SAME TIME, A LIBERTY IS GIVEN TO REVENUE TO SEEK RECALL OF THE APPEAL, IF AT A LATER STAGE, IT IS FOUND THAT THE M ATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN ANY OF THE CIRCULAR OR IN CA SE THE TAX EFFECT AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 4. IN THE RESULT, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY,2020. SD/- SD/- (MAHAVIR SINGH) (MA NOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 14/01/2020 SR.PS, JAISY VARGHESE ITA NO.5706/MUM/2018 M/S. NIHAAR EQUIPMENT PRIVATE LIMITED ASSESSMENT YEAR :2013-14 3 !'! / COPY OF THE ORDER FORWARDED TO : 1. %' / THE APPELLANT 2. ()%' / THE RESPONDENT 3. 0 ( ) / THE CIT(A) 4. 0 / CIT CONCERNED 5. 12(+3 , 3 , / DR, ITAT, MUMBAI 6. 2456 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.