ITO 22 (2)(7), MUMBAI V. PRAVINKUMAR TARACHAND SAKARIA, MUMBAI

ITA 7375/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6836 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VINIT KUMAR SAKARIA
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO.7375/M/2019 ASSESSMENT YEAR: 2009-10 ITO 22(2)(7), INCOME TAX OFFICE, R.NO.107, 1 ST FLOOR, PIRAMAL CHAMBERS, LALBAUG, MUMBAI 400012 VS. MR. PRAVINKUMAR TARACHAND SAKARIA, 110/7, B.D.D. CHAWL, WORLI, MUMBAI - 400 018 PAN: AADPS3575P (APPELLANT) (R ESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI VINIT KUMAR SAKARIA, A.R. REVENUE BY : MS. SHREEKALA PARDESHI, D.R. DATE OF HEARING : 22.07.2021 DATE OF PRONOUNCEMENT : 26.07.2021 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 23.09.2019 OF THE COMMISSIO NER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2009-10. 2. AT THE OUTSET, IT IS NOTICED THAT THE CBDT RECENTLY HAS AMENDED THE CBDT CIRCULAR NO. 3/2018 DATED 11.07.20 18 VIDE CIRCULAR NO. 17/2019, F.NO. 279/MISC.142/2007-ITJ(P T.) DATED 08.08.2019 INCREASING THE LIMIT FOR FILING OF APPEA L BEFORE INCOME TAX APPELLATE TRIBUNAL I.E. RS.50 LACS IN EACH OF T HE CASE. WE NOTED THAT EARLIER CIRCULAR NO. 3 OF 2018 WAS MADE APPLICABLE TO PENDING APPEALS ALSO AND THIS CLAUSE OF THE CIRCULA R REMAINS ITA NO.7375/M/2019 MR. PRAVINKUMAR TARACHAND SAKARIA 2 UNCHANGED EVEN AFTER THE AMENDMENT. ADMITTEDLY, IN THIS CASE TAX EFFECT IS BELOW PRESCRIBED LIMIT FOR FILING OF APPEAL BEFORE THE TRIBUNAL BY THE REVENUE I.E. RS.50 LACS. 3. WHEN THIS WAS CONFRONTED TO THE LEARNED DEPARTMENTA L REPRESENTATIVE, HE COULD NOT POINT OUT THAT THIS AP PEAL FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN CIRCULAR NO. 17 OF 2019. ADMITTEDLY, THE TAX EFFECT IN THIS APPEAL OF REVENUE IS MUCH BELOW THE PRESCRIBED LIMIT OF FILING APPEAL BE FORE THE TRIBUNAL I.E. RS.50 LACS AS PER CBDT CIRCULAR NO. 1 7 OF 2019. IN VIEW OF THE ABOVE, THIS APPEAL OF REVENUE IS DISMIS SED AS WITHDRAWN IN VIEW OF CIRCULAR NO. 17 OF 2019. 4. NOW, BEFORE US, THE LEARNED CIT DEPARTMENTAL REPRESENTATIVE ONLY REQUESTED THAT HE WANTS TO VERI FY WHETHER THIS APPEAL FALLS UNDER ANY OF THE EXPLANATION PROV IDED IN CBDT CIRCULAR NO. 3/2018. WE DO NOT FIND ANY MERIT IN T HE ARGUMENT OF THE LD. A.R. QUA THIS PENALTY APPEAL FALLING UND ER EXCEPTION TO THE CIRCULARS AS REFERRED TO ABOVE. THE ISSUE WHET HER THE PENALTY ON BOGUS PURCHASES WHERE THE INFORMATION HAS BEEN R ECEIVED FROM EXTERNAL SOURCES FALLS UNDER EXCEPTION AS PROV IDED IN THE ABOVE CIRCULARS HAS BEEN DECIDED BY THE CO-ORDINATE BENCH IN ITA NO.4130/M/2019 A.Y. 2011-12 WHEREIN IT HAS BEEN HELD THAT THE CLAUSE 10(E) OF CBDT CIRCULAR NO.3/2018 AS AMENDED ON 20.08.2018 APPLIES TO QUANTUM ADDITIONS AND NOT THE PENALTY. HENCE, THIS APPEAL IS DISMISSED AS LOW TA X EFFECT COVERED BY CBDT CIRCULAR NO. 17/2019. ITA NO.7375/M/2019 MR. PRAVINKUMAR TARACHAND SAKARIA 3 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 26.07.2021. SD/- SD/- ( RAVISH SOOD) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 26.07.2021. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORDER DY/ASS TT. REGISTRAR, ITAT, MUMBAI.