ACIT-22(3), MUMBAI, MUMBAI V. M/s. TRIBHOVANDAS BHIMIJ ZAVERI, MUMBAI

ITA 5930/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9960 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 16-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR MENON
• Assessee Lawyers: HETAN PATEL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E , MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI RAJESH KUMAR , ACCOUNTANT MEMBER ITA NO. 5930/MUM/2019 ASSESSMENT Y EAR: 2007 - 08 ASSISTANT COMMISSIONER OF INCOME TAX 22(3), 305, LAL BAUG , PAREL, MUMBAI - 400012 VS. M/S TRIBHOVANDAS BHIMJI ZAVERI, 442, CHITRAKAR DURANDHAR MARG, KHAR (WEST), MUMBAI - 400052 PAN: AACFT7935P (APPELLANT) (RESPONDENT) REVENUE BY : SHRI VIJAY KUMAR MENON (D R) ASSESSEE BY : SHRI HETAN PATEL ( A R) DATE OF HEARING: 23 /06 /20 21 DATE OF PRONOUNCEMENT: 09 / 07 /202 1 O R D E R PER SAKTIJIT DEY , JM THIS IS AN APPEAL BY THE REVENUE AGAIN ST ORDER DATED 06.06.2019 OF LEARNED COMMI SSIONER OF INCOME TAX (APPEALS) 34, MUMBAI FOR THE ASSESSMENT YEAR 2007 - 08. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED , THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE DUE TO LOW TAX EFFECT. FURTHER, HE SUBMITTED , THE APPEAL IS NOT COVERED UNDER ANY OF THE EXCEPTION S PROVIDED TO CIRCULAR NO. 17/2019 DATED 08.08.2019. 3. WH EN THE BENCH CALLED UPON THE LEARNED DEPARTMENTAL REPRESENTATIVE TO DEMONSTRATE AS TO HOW THE APPEAL IS COVERED UNDER PARAGRAPH 10 (E) OF CIRCULAR NO. 3/2018 DATED 11.07.2018 AS AMENDED BY THE CENTR AL BOARD OF DIRECT TAXES VIDE LETTER DATED 20.08.2018 , AS MENTIONED IN GROUND NO. 4 , WHICH REFERS TO INFORMATION RECEIVED FROM ANY EXTERN AL SOURCES AS MENTIONED THEREIN, HE DREW OUR ATTENTION TO THE ASSESSMENT ORDER AND SUBMITTED THAT INFORMATION WAS 2 ITA NO. 5930 / MUM/20 19 ASSESSMENT YEAR: 20 07 - 08 RECEI VED FROM DIRECTOR GENERAL OF INVESTIGATION (DGIT) ( INV.), MUMBAI. FURTHER, ON PERUSAL OF THE ASSESSMENT ORDER, WE DO NOT FIND ANY REFERENCE BY THE AO TO INFORMATION RECEIVED FROM ANY EXTERNAL SOURCES AS MENTIONED I N PARA GRAPH 10(E) OF AFOREMENTIONED I NSTR UC TIONS OF THE CBDT. THUS, THE UNDISPUTED FACTUAL POSITION IS, THE ASSESSMENT IS BASED ON INFORMATION RECEIVED FROM DGIT (INV.), MUMBAI AND NOT FROM ANY EXTERNAL SOURCES OF THE NATURE MENTIONED IN PARA GRAPH 10(E) OF THE CBDT INSTRUCTION REFERRED TO ABOVE. IN A CATENA OF DECISION S , THE TRIBUNAL HAS HELD THAT DGIT (INV.) CANNOT BE CONSIDERED AS AN EXTERNAL SOURCE AS PER PARA GRAPH 10(E) OF THE CBDT INSTRUCTION REFERRED TO ABOVE. IN THIS CONTEXT, WE MAY REFER TO THE FOLLOWING DECISIONS: I) ITO VS LATE SHRI AMARC HAND P. SHAH, ITA NO.818 820/MUM/2017 DATED 08/07/2019; II) ACIT VS M/S. NOCIL STEEL, ITA NO.3483/MUM/2017 DATED 05.02.2020; III) ITO VS M/S. NISHDISH INFRASTRUCTURE P. LTD., ITA NO.6003/MUM/2017 DATED 28.11.2019; IV) ACIT VS M/S. GIRIRAJ CIVIL DEVELOPERS PVT. LTD., ITA NO.1183/MUM/2017 DATED 20.08.2019; V) ITO VS NIDHI PREMISES PVT. LTD., ITA NO.3607/MUM/2017 DATED 05.02.2020 4 . THUS, IN OUR CONSIDERED OPINION, THE PRESENT APPEAL IS NOT COVER ED UNDER PARA GRAPH 10 (E) OF CBDT INSTRUCTION NO. 3 OF 2018. THAT BEING THE CASE, CIRCULAR NO. 17/2019 DATED 08.08.2019 WOULD BE APPLICABLE TO THE PRESENT APPEAL. UNDISPUTEDLY, THE TAX EFFECT ON THE AMOUNT DISPUTED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT OF RS. 50 LACS AS SPECIFIED IN CIRCULAR NO. 17/2019 D ATED 08.08.2019 FOR FILING APPEALS BEFORE THE TRIBUNAL. CONSEQUENTLY, THE PRE SENT APPEAL BEING NOT MAINTAINABLE HAS TO BE DISMISSED. ACCORDINGLY, WE DO SO. 5 . IN THE RESULT, APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH JULY , 2021 . SD/ - SD/ - ( RAJESH KUMAR ) ACCOUNTANT MEMBER ( SAKTIJIT DEY ) JUDICIAL MEMBER MUMBAI ; DATED: 09 / 07 /2021 ALINDRA, PS 3 ITA NO. 5930 / MUM/20 19 ASSESSMENT YEAR: 20 07 - 08 / 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 . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI