ITO - 27 (1)(4), MUMBAI V. CHANDRAKANT M. GADA, MUMBAI

ITA 6316/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4108 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 02-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMAPANI BORA
• Assessee Lawyers: DILIP V NATHANI
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JM & SHRI S . RIFAUR RAHMAN, AM ./ I.T.A. NO . 6316 / MUM/ 2018 ( / ASSESSMENT YEAR: 20 09 - 10 ) ITO 27 (1) (4) ROOM NO. 409, TOWER NO. 6, 4 TH FLOOR, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI - 400 703. / VS. CHANDRAKANT M. GADA 501, 5 TH FLOOR, SILVER, COURT, M. G. ROAD, GHATKOPAR (E), MUMBAI - 400 077 ./ ./ PAN NO. ACIPG 0396 H ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI KUMAR PADMAPANI BORA , DR / RESPONDENTBY : SHRI DILIP V. NATHANI , AR / DATE OF HEARING : 18.12.2019 / DATE OF PRONOUNCEMENT : 08.01.2020 / O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER : THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF LD. COMMIS S IONER OF INCOME TAX (APPEALS) - 25 IN SHORT REFERRED AS LD. CIT(A) , MUMBAI, DATED 1 0.08.2018 FOR A SSESSMENT YEAR (IN SHORT A Y ) 20 09 - 10 . 2 I.T.A. NO. 6316 /MUM/201 8 CHANDRAKANT M. GADA 2 . AT THE OUTSET, WE NOTICE THAT THE TAX EFFECT OF THE RELIEF GRANTED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS BELOW RS. 50 LACS AND AS PER CIRCULAR NO.17 OF 2019 DATED 08.08.2019 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT), DEPARTMENT OF REV ENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, THE CBDT HAS REVISED THE MONETARY LIMIT FOR FILING APPEALS BEFORE THE ITAT FROM THE EXISTING LIMIT OF RS. 20 LACS TO RS. 50 LACS. 3 . THE LD. DEPARTMENTAL REPRESENTATIVE (DR) FAIRLY CONCEDED THAT THIS APPEAL IS COVERED BY THE AFORESAID CIRCULAR ISSUED BY THE CBDT. THE LD. DR SUBMITTED THAT IN CASE THIS APPEAL FALLS IN THE EXCEPTIONAL CASE, THE APPEAL MAY BE ALLOWED TO RECALL. 4 . WE HAVE GONE THROUGH THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) AN D THE GROUNDS OF APPEALS. WE FIND THAT THE TAX EFFECT IN THE ABOVE REFERRED APPEAL IS LESS THAN RS. 50 LACS. ACCORDINGLY, WE DISMISS THE AFORESAID APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE/WITHDRAWN. 3 I.T.A. NO. 6316 /MUM/201 8 CHANDRAKANT M. GADA 5. EVEN ON MERIT, THE PENALTY WAS LEVIED ON ESTIM ATION OF DISALLOWANCE ON BOGUS PURCHASE. THE COURTS HAVE HELD THAT PENALTY CANNOT BE LEVIED ON ESTIMATION OF INCOME. 6 . IN THE NET RESULT, THE APPEAL FILED BY THE REVENUE STA NDS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JAN, 20 20 . SD/ - SD/ - ( SAKTIJIT DEY ) (S. RIFAUR RAHMAN ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 08 . 01.2020 SR.PS . DK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, . / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI