ITO 27 (3)(2), NAVI MUMBAI V. SMT. SANTOSH ANIL PARMAR, MUMBAI

ITA 7488/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4414 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 05-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANOOP
• Keywords: Tax effect; Capital Gains

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, M UMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI AMARJIT SINGH , JM ITA NO.7488/MUM/2019 (ASSESSMENT YEAR: 2006-07) ITO-27(3)(2) ROOM NO. 425, 4 TH FLOOR, TOWER NO. 6, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI-400 703 VS. SMT. SANTOSH ANIL PARMAR 501, PRABHAT CHS LTD., PLOT NO. 415-A, D. K. SANDHU MARG, CHEMBUR, MUMBAI-400 701 PAN/GIR NO. AGKPP 5786 E ( APPELLANT ) : ( RESPONDENT ) APPELLANT BY : SHRI ANOOP RESPONDENT BY : NONE DATE OF HEARING : 19.05.2021 DATE OF PRONOUNCEMENT : 24.05.2021 O R D E R PER SHAMIM YAHYA, A. M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-26, MUMBAI (L D.CIT(A) FOR SHORT) DATED 23.09.2019 AND PERTAINS TO THE ASSESSMENT YEAR (A.Y .) 2006-07. 2. THE GROUNDS OF APPEAL READ AS UNDER: (I) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD. CIT(A) WAS CORRECT IN DELETING THE ADDITION OF RS.7,57,367/- M ADE UNDER THE HEAD UNEXPLAINED SOURCES WHICH WAS SHOWN BY THE ASSESSEE IN THE GUISE OF EXE MPTION ON ACCOUNT OF LONG TERM CAPITAL GAINS ON SALE OF SHARES OF M/S. BUNIYAD CHE MICALS THROUGH M/S. MAHASAGAR SECURITIES PVT. LTD., WITHOUT APPRECIATING THE FACT THAT THE NATIONAL STOCK EXCHANGE OF INDIA HAS CANCELLED THE REGISTRATION OF M/S. MAHASA GAR SECURITIES PVT. LTD. IN THE YEAR 2004 AND THE SAID SHARES WERE SOLD IN THE YEAR 2005 ? (II) THE APPELLANT PRAYS THAT THE ORDER OF THE CIT( A) ON THE ABOVE GROUNDS BE REVERSED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. AT THE OUTSET, IT IS NOTED THAT THE TAX EFFECT I N THIS CASE IS BELOW THE LIMIT OF RS.50,00,000/- FIXED BY THE CBDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 FOR FILING THE APPEAL BEFORE THE ITAT. HENCE, THIS APPEAL BY T HE REVENUE IS NOT MAINTAINABLE. 2 ITA NO. 7488/MUM/2019 (A.Y. 2006-07) ITO VS. SMT. SANTOSH ANIL PARMAR 4. PER CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE (LD. DR FOR SHORT) COULD NOT DISPUTE THAT THE TAX EFFECT IS BELOW THE SAID LIMIT . HE COULD NOT POINT OUT THAT THE APPEAL FALLS IN ANY OF THE EXCEPTION CARVED IN SAID CIRCUL AR. 5. UPON CAREFUL CONSIDERATION, WE FIND THAT AS THE TAX EFFECT IS BELOW THE LIMIT FIXED BY CBDT FOR FILING THE APPEALS BEFORE THE ITAT, THI S APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED IN LIMINE . 6. ACCORDINGLY, THE APPEAL STANDS DISMISSED AS SUCH . ORDER PRONOUNCED UNDER RULE 34(4) OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES, 1962, BY PLACING THE DETAILS ON THE NOTICE BOARD ON 24.05.20 21 SD/- SD/- (AMARJIT SINGH) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED : 24.05.2021 ROSHANI , SR. PS 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 FILE BY ORDER, (DY./ASSTT. REGISTRAR) ITAT, MUMBAI