ACIT 3 (1)(1), MUMBAI V. M/S AMFORGE INDUSTRIAL LTD., MUMBAI

ITA 7359/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3846 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI
• Keywords: Tax effect
• Section: 143(3); 73

Judgement Text

, , ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 7359 / / 2019 (%. 2009-10 ) ITA NO.7359/MUM/2019(A.Y 2009-10) ACIT-3(1)(1), ROOM NO.607, 6 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI 400 020 ...... ' / APPELLANT % VS. M/S. AMFORGE INDUSTRIES LTD. 108-111, RAHEJA CHAMBERS, FREE PRESS JOURNAL MARG, NARIMAN POINT,MUMBAI 400 021 PAN:AAACA-8756-A ..... ()/ RESPONDENT '*/ APPELLANT BY : SHRI SANJAY J. SETHI ()*/ RESPONDENT BY : NONE %+) / DATE OF HEARING : 19/07/2021 ,-. +) / DATE OF PRONOUNCEMENT : 04/10/2021 / ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) -8, MUMBAI [IN SHORT THE C IT(A)] DATED 12/09/2019 FOR THE ASSESSMENT YEAR 2009-10. 2. THE SOLITARY ISSUE RAISED IN APPEAL BY THE RE VENUE IS AGAINST DELETING ADDITION OF RS.12,53,610/- ON ACCOUNT OF LOSS CLA IMED BY THE ASSESSEE THROUGH ALLEGED MISUSE OF CLIENT CODE MODIFICATION. 2 ITA NO.7359/MUM/2019(A.Y 2009-10) 3. AT THE OUTSET IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THE APPEAL AS PER FORM 36 IS RS.3,87,367/-. THE MONETARY LIMIT FOR FILING OF THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL IS RS.50.00 LAKHS AS PER CBDT C IRCULAR NO.17/2019 DATED 08/08/2019. A PERUSAL OF THE ASSESSMENT ORDER PASS ED U/S. 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 ( IN SHORT 'THE ACT') SHOWS TH AT THE CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2009-10 WAS REOPENED ON THE BASIS O F INFORMATION RECEIVED FROM DIRECTOR OF INCOME TAX (INTELLIGENCE AND CRIMINAL I NVESTIGATION), MUMBAI [ IN SHORT DIT(I&CI)]. THE DIVISION BENCH OF THE TRIBUNAL I N THE CASE OF ITO VS. AMARCHAND P. SHAH REPORTED AS 73 ITR (TRIBUNAL) 588 (MUM) HAS H ELD THAT DIT(INVESTIGATION) IS AN INTERNAL AGENCY/ WING OF THE DEPARTMENT, WHICH WOR K UNDER THE AEGIS OF ITS CONTROLLING AUTHORITY THE CBDT, HENCE, CANNOT BE C ONSIDERED AS AN EXTERNAL SOURCE AS REFERRED TO IN PARA 10(E) OF THE CBDT COMMUN ICATION DATED 20/08/2018. THEREFORE, INFORMATION RECEIVED BY THE ASSESSING OF FICER FROM DIT(I&CI) IS NOT COVERED BY EXCEPTIONS AS CONTAINED IN PARA 10(E) OF THE CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 AND SUBSEQUENTLY AMENDED BY COMMUN ICATION DATED 20/08/2018. 3. IN MY CONSIDERED VIEW THIS APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN THE LIGHT OF CBDT CIRC ULAR NO.17/2019(SUPRA). 4. IN THE RESULT, APPEAL BY THE REVENUE IS DISMISS ED IN THE AFORESAID TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY THE 04 TH DAY OF OCTOBER, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED 04/10/2021 VM , SR. PS (O/S) 3 ITA NO.7359/MUM/2019(A.Y 2009-10) COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT , 2. () / THE RESPONDENT. 3. 1) ( )/ THE CIT(A)- 4. 1) CIT 5. 23()% , . . . , / DR, ITAT, MUMBAI 6. 34567 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI