ITO 27 (1)(2), MUMBAI V. BABU VENKETY GOSULA, MUMBAI

ITA 5732/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8938 (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: 2009-2010
• Appeal Filed On: 05-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIKLD
• Keywords: Bogus purchase; Tax effect

Judgement Text

ITA NO.5732/MUM/2018 BABU VENKETY GOSULA ASSESSMENT YEAR :2009-10 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.5732/MUM/2018 ( / ASSESSMENT YEAR : 2009-10 ) INCOME TAX OFFICER - 27 ( 1 )( 2 ) TOWER NO.6, 4TH FLOOR ROOM NO.407 VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI / VS. SHRI BA B U VENKETY GOSULA 308 SHREE SAIDHAM CHS LTD. TILAK ROAD, GHATKOPAR (E) MUMBAI- 400 077. $% ./ ./PAN/GIR NO. AACPG-9004-E ( %' /APPELLANT ) : ( ()%' / RESPONDENT ) ASSESSEE BY : NONE 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) 2009-10, THE REVENUE IS AGGRIEVED BY DELETION OF PENALTY OF RS.6 0,211/- BY LEARNED FIRST APPELLATE AUTHORITY. THE PENALTY UNDER DISPUT E WAS LEVIED BY LD. AO VIDE PENALTY ORDER DATED 29/09/2015 AGAINST ESTIMAT ED ADDITIONS @ 12.5% OF ALLEGED BOGUS PURCHASES. ITA NO.5732/MUM/2018 BABU VENKETY GOSULA ASSESSMENT YEAR :2009-10 2 2. NONE HAS APPEARED FOR ASSESSEE AND NO VALID ADJO URNMENT APPLICATION IS ON RECORD. THEREFORE, THE MATTER WAS PROCEEDED WITH EX- PARTE QUA THE ASSESSEE IN VIEW OF THE FACT THAT THE APPEAL IS COVERED BY LOW TAX EFFECT CIRCULAR NO.17/2019 DATED 08/08/2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. 3. 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. THE LD. DR HAS SUBMITTED THAT QUANTUM ADDITIONS WERE MADE PURS UANT TO RECEIPT OF CERTAIN INFORMATION FROM AN EXTERNAL AGENCY VIZ. SA LES TAX DEPARTMENT AND THEREFORE, THE APPEAL WOULD BE COVERED BY THE E XCEPTIONS PROVIDED UNDER THE CIRCULAR. HOWEVER, WE ARE OF THE CONSIDER ED OPINION THAT QUANTUM PROCEEDINGS AND PENALTY PROCEEDINGS ARE SEP ARATE PROCEEDINGS AND THE CIRCULAR WOULD APPLY TO EACH PR OCEEDING SEPARATELY. NO SEPARATE EXCEPTION HAS BEEN PROVIDED IN ANY OF T HE CIRCULAR WITH RESPECT TO QUANTUM OF PENALTY. IN VIEW OF THE SAME, WE DISMISS THE APPEAL. 4. 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. ITA NO.5732/MUM/2018 BABU VENKETY GOSULA ASSESSMENT YEAR :2009-10 3 5. IN THE RESULT, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY,2020. SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 14/01/2020 SR.PS, JAISY VARGHESE !'! / 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.