ITO 14(3)(2), MUMBAI V. ARUNA SYNTHETICS, MUMBAI

ITA 7340/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2523 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 13-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 69

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO.7340/MUM/2013 ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER-14(3)-2 6 TH FLOOR, EARNEST HOUSE, NARIMAN POINT, MUMBAI-400021 / VS. M/S ARUNA SYNTHETICS, M/S R KUNDA &COMPANY 685, GOVIND CHOWK, M.J. MARKET, MUMBAI-400002 ( / REVENUE) ( ! ' /ASSESSEE) PAN. NO. AABFA8046P / REVENUE BY SHRI ASGHAR ZAIN ! ' / ASSESSEE BY NONE # $ % ' & / DATE OF HEARING : 01/12/2015 % ' & / DATE OF ORDER: 01/12/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 19/09/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, SUSTAINING THE ADDITION U/S 69 OF THE INCOME TAX AC T, 1961 (HEREINAFTER THE ACT) AFTER HAVING ACCEPTED THE FIN DING IN M/S ARUNA SYNTHETICS ITA NO.7340/MUM/2013 2 PRINCIPLE THAT THE PURCHASES WERE MADE FROM UNDISCLOSED/UNVERIFIABLE/UNIDENTIFIABLE PARTIES IN THE GRAY MARKET BY INVESTING IN CASH AND THE PURCHASES FROM THE GROUP CONCERNS OF SHRI RAKESH GUPTA AND FAMILY WERE ONLY ACCOMMODATION AND NOT ACTUAL PURCHASES. 2. AT THE OUTSET, IT WAS POINTED OUT THAT THE TAX EFFECT INVOLVED IN THE APPEAL OF THE REVENUE IS BELOW MONE TARY PRESCRIBED LIMIT. THIS FACTUAL MATRIX WAS NOT CONT ROVERTED BY LD. DR, SHRI ASHGAR ZAIN. HOWEVER, NONE WAS PRESEN T FOR THE ASSESSEE IN SPITE OF ISSUANCE OF REGISTERED NOTICE. IT SEEMS THAT ASSESSEE IS NOT INTERESTED, THUS, WE PROCEED T O DISPOSE OFF THIS APPEAL EX-PARTE, QUA THE ASSESSEE, ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 2.1. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN VIEW OF THE FACT THAT THE TAX EFFECT IN THE APPEAL IS BELOW PRESCRI BED MONETARY LIMIT AS CONTAINED IN CBDT INSTRUCTION NO.3/2011 DA TED 09/02/2011, FURTHER INSTRUCTION NO.5/2014 (F NO.279/MISC./142/2007-IT(PT) DATED 10/07/2014. THE CBDT REVISED THE MONETARY LIMIT FOR FILING THE APPE AL BEFORE VARIOUS AUTHORITIES/COURTS AND ADVISED/DIRECTED THE DEPARTMENT NOT TO FILE APPEAL IN THE CASES WHERE TH E TAX EFFECT DOES NOT EXCEED THE FOLLOWING MONETARY LIMIT S, THE APPEALS OF THE REVENUE IS NOT MAINTAINABLE. THE RE VISED MONETARY LIMIT IS AS UNDER:- M/S ARUNA SYNTHETICS ITA NO.7340/MUM/2013 3 SL. NO. APPEALS IN INCOME TAX MATTERS MONETARY LIMIT (IN RS.) 1. BEFORE APPELLATE TRIBUNAL 4,00,000/ - 2. U/S 260 A BEFORE HIGH COURT 10,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - AS PER THE AFORESAID INSTRUCTION, THE DEPARTMENT IS NOT TO FILE APPEAL BEFORE THE TRIBUNAL, WHEREIN THE TAX EF FECT IS LESS THAN RS.4,00,000/-, CONSEQUENTLY, CONSIDERING THE D ECISION FROM THE HONBLE JURISDICTIONAL HIGH COURT IN THE C ASE OF PITHWA ENGINEERING WORKS (276 ITR 519) (BOM ) , THE APPEALS OF THE REVENUE ARE NOT MAINTAINABLE. THEREFORE, IN VI EW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED AS NOT MAINTAINABLE. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. DR, AT THE CONCLUSION OF THE HEARIN G ON 01/12/2015. SD/- SD/- ( RAJENDRA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER # $ MUMBAI; ( DATED : 01/12/2015 F{X~{T? P.S/. . . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. *+,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 # 1' ( *+ ) / THE CIT, MUMBAI. 4. 0 0 # 1' / CIT(A)- , MUMBAI 5. 34 .' , 0 *+& * 5 , # $ / DR, M/S ARUNA SYNTHETICS ITA NO.7340/MUM/2013 4 ITAT, MUMBAI 6. 6 7$ / GUARD FILE. / BY ORDER, /3+' .' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , # $ / ITAT, MUMBAI