DCIT- CC- 6(3), MUMBAI V. BOMBAY RAYON FASHIONS LTD., MUMBAI

ITA 6297/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8843 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 02-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Keywords: Bogus purchase; Tax effect
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.6297 & 6299/MUM/2018 (A.YS. 2011-12 & 2012-13) THE DCIT, CEN.CIR.6(3), ROOM NO.1926, 19 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI 400 021 ...... APPELLANT VS. M/S. BOMBAY RAYON FASHIONS LTD. D-WING, 1 ST FLOOR, OBEROI GARDEN ESTATE, CHANDIVALI, ANDHERI(E) MUMBAI 400 072 PAN: AAACM3447J ..... RESPONDENT APPELLANT BY : MS. KAVITA P. KAUSHIK RESPONDENT BY : SHRI DHAVAL SHAH DATE OF HEARING : 16/09/2019 DATE OF PRONOUNCEMENT : 16/09/2019 ORDER PER VIKAS AWASTHY, JM: THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST T HE ORDERS OF CIT(A)-54, MUMBAI FOR ASSESSMENT YEARS 2011-12 & 20 12-13, RESPECTIVELY. BOTH THE IMPUGNED ORDERS ARE DATED 27/08/2018. 2. SHRI DHAVAL SHAH APPEARING ON BEHALF OF THE AS SESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO. 17/2019, DATED 8 TH 2 ITA NO.6297 & 6299/MUM/2018 (A.YS. 2011-12 & 2012-13) AUGUST, 2019. THE LD. AR SUBMITTED THAT THE DEPART MENT IN APPEAL HAS ASSAILED THE FINDINGS OF COMMISSIONER OF INCOME TA X (APPEALS) IN DELETING THE ADDITION OF RS.1,41,90,089/- FOR ASSESSMENT YEA R 2011-12 AND RS.59,36,088/- FOR ASSESSMENT YEAR 2012-13 ON ACCOU NT OF BOGUS PURCHASES. THE LD. AR OF THE ASSESSEE POINTED THAT TAX EFFECT INVOLVED IN BOTH THE APPEALS IS LESS THAN RS.50 LAKHS. 3. MS. KAVITA P. KAUSHIK REPRESENTING THE DEPARTM ENT FAIRLY ADMITTED THAT IN THE PRESENT APPEALS BY THE DEPARTMENT TAX E FFECT IS LESS THAN RS.50 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGA INST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETING THE ADDITIONS MADE BY THE ASSESSING OFFICER IN RESPECT OF BOGUS PURCHASE S IN ASSESSMENT YEAR 2011-12 & 2012-13. UNDISPUTEDLY, THE TAX EFFECT IN VOLVED IN BOTH THE APPEALS IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO. 17/2019, DATED 08-08-2019 FOR FILING O F APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08-08-2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO. 3 OF 201 8 DATED 11-07-2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING OF APPEALS BY THE DEPARTMENT BEFOR E THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN TH E APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA) THE PRESENT APPEALS BY THE RE VENUE ARE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENU E SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEALS , WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL(S) IS/ARE PROTECTE D BY THE EXCEPTIONS 3 ITA NO.6297 & 6299/MUM/2018 (A.YS. 2011-12 & 2012-13) PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11-07-2 018 AND ITS AMENDMENT DATED 20/08/2018. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT AFTER HEARING TH E APPEAL ON MONDAY, THE 16 TH DAY OF SEPTEMBER 2019. SD/- SD/- (RAJESH KUMAR ) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 16/09/2019 VM , SR. PS(O/S) 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