Deputy Commissioner of Income-tax, V. Chhabi Electricals Pvt. Ltd., Jalgaon

ITA 588/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5279 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-07-2018
• Assessment Year: 2009-2010
• Appeal Filed On: 31-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JHA
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 588 /P U N/201 6 / ASSESSMENT YEAR : 20 09 - 10 THE DY. COMMISSIONER OF INCOME TAX, C IRCLE 1, JALGAON ....... / APPELLANT / V/S. CHHABI ELECTRICALS PVT. LTD., E - 66, MIDC, AJANTA ROAD, DISTT. - JALGAON - 425003 PAN : AABCC3660J / RESPONDENT ASSESSEE BY : SHRI C.H. NANIWADEKAR REVENUE BY : SHRI MUKESH JHA / DATE OF HEARING : 1 9 - 07 - 201 8 / DATE OF PRONOUNCEMENT : 1 9 - 0 7 - 201 8 / ORDER PER VIKAS AWASTHY, JM : TH E APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2, NASHIK DATED 27 - 01 - 2016 FOR THE ASSESSMENT YEAR 20 09 - 10. 2. SHRI C.H. NANIWADEKAR APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIA BLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT C IRCULAR NO. 3/2018, DATED 11 - 07 - 2018. 2 ITA NO . 588/PUN/2016, A.Y. 2009 - 10 3. SHRI MUKESH JHA REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.20 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IN RESTRICTING/ DELETING THE ADDITION ON ACCOUNT OF BOGUS PURCHASES . THE ASSESSING OFFICER MADE ADDITION OF RS.56,33,551/ - ON ACCOUNT OF BOGUS PURCHASES. THE COMMISSIONER OF INCOME TAX (APPEALS) RESTRICTED THE ADDITION TO RS.5,63,355/ - , THEREBY GRANTING RELIEF OF RS.50,70,196/ - . AGAINST THE RELIEF ALLOWED , THE REVENUE IS IN APPEAL. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN T HE MONETARY LIMIT PRESCRIBED BY RECENT CBDT CIRCULAR FOR FILING OF APPEAL S BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE C IRCULAR NO. 3/2018, DATED 11 - 07 - 2018 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE, AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. THUS, IN VIEW OF THE ABOVE CBDT C IRCULAR , THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON T HURSDAY, THE 1 9 TH DAY OF JULY, 2018. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 1 9 TH JU LY , 2018 RK 3 ITA NO . 588/PUN/2016, A.Y. 2009 - 10 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 2, NASHIK 4. THE PR. COMMISSIONER OF INCOME TAX - 2, NASHIK 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE