ASST CIT CC 1 (3), MUMBAI V. M/S NEMINATH HOMES P LTD., MUMBAI

ITA 8027/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2956 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 30-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI
• Keywords: Search and seizure; Tax effect
• Section: 73

Judgement Text

, ! %, & ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI MANOJ KUMAR AGGRAWAL, ACCOUNTANT MEMBER. . 8027 / / 2019 (. .2010-11 ) ITA NO. 8027/MUM/2019 (A.Y.2010-11) ASSTT. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE 1(3),MUMBAI. 905, 9 TH FLOOR, PRATISHTHA BHAVAN, OLD CGO, BLDG.(ANNEXE) M.K.ROAD, MUMBAI 400 020. / VS. : / APPELLANT M/S. NEMINATH HOMES P. LTD., 115, 4 TH FLOOR, DEVELOPMENT BANK BUILDING, CRAWFORD MARKET, MUMBAI 400 001 PAN: AABCO2184R : / RESPONDENT ASSESSEE BY : SHRI PRAKASH JHUNJHUNWALA REVENUE BY : SHRI SANJAY J. SETHI / DATE OF HEARING : 10/06/2021 / DATE OF PRONOUNCEMENT : 10/06/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-47, MUMBAI [IN SHORT THE CIT( A) ] DATED 23/10/2019 FOR THE ASSESSMENT YEAR 2010-11. 2 ITA NO. 8027/MUM/2019 (A.Y.2010-11) 2. SHRI PRAKASH JHUNJHUNWALA APPEARING ON BEHALF O F THE ASSESSEE SUBMITTED AT THE OUTSET THAT APPEAL OF THE REVENUE IS LIABLE TO BE D ISMISSED ON ACCOUNT OF LOW TAX EFFECT IN THE LIGHT OF RECENT CBDT CIRCULAR NO.17/2019 DATED 08/08/2019. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE FURNISHED WORKING OF TAX ON DISPUTED ISSUES. AS PER THE WORKING SUBMITTED BY LD. AUTHORIZED REPRESENTAT IVE FOR THE ASSESSEE THE DISPUTED TAX AMOUNT IS RS.11,91,195/-. 3. SHRI SANJAY J. SETHI REPRESENTING THE DEPARTMENT ADMITTED THAT TAX EFFECT IS LESS THAN RS.50 LAKHS, HOWEVER, THE LD. D EPARTMENTAL REPRESENTATIVE VEHEMENTLY CONTENDED THAT THE APPEAL BY DEPARTMENT FALLS UNDER EXCEPTION PRESCRIBED IN PARA -10(E) OF CIRCULAR DATED 11/07/2 018 AND FURTHER AMENDED VIDE COMMUNICATION DATED 20/08/2018. 4. BOTH SIDES HEARD. THE TAX EFFECT INVOLVED IN TH IS APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCUL AR NO. 17/2019, DATED 08-08-2019 FOR FILING OF APPEALS BEFORE THE TRIBUNA L BY THE DEPARTMENT. THEREFORE, THE APPEAL BY REVENUE IS LIABLE TO BE D ISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. THE LD. DEPARTMENTAL REPRESENTATIVE HAS CONTENDE D THAT THE APPEAL IS PROTECTED BY EXCEPTIONS PRESCRIBED IN PARA-10 OF CIRCULAR DATED 20/08/2018 (SUPRA) AS THE ASSESSMENT WAS REOPENED IN THE CASE OF ASSESSEE CONSEQUENT TO SEARCH AND SEIZURE ACTION CARRIED BY DGIT(INVEST IGATION), MUMBAI ON BHANWARLAL JAIN GROUP. WE DO NOT CONCUR WITH THE S UBMISSIONS MADE BY LD. DEPARTMENTAL REPRESENTATIVE. THE DGIT (INVESTIGATI ON) IS AN INTERNAL AGENCY OF THE INCOME TAX DEPARTMENT. THE CBDT COMMUNICATI ON DATED 20/08/2018 PARA-10(E) REFERS TO INFORMATION RECEIVED FROM EXTE RNAL LAW ENFORCEMENT AGENCIES SUCH AS CBI/ED/DRI, ETC. IN OUR CONSIDERE D VIEW THE APPEAL BY DEPARTMENT IS NOT PROTECTED BY CBDT COMMUNICATION(S UPRA). OUR VIEW IS FORTIFIED BY THE DECISION OF CO-ORDINATE BENCH IN T HE CASE OF ITO VS. AMARCHAND P. SHAH, 73 ITR 588 (MUM-TRIB). 3 ITA NO. 8027/MUM/2019 (A.Y.2010-11) 6. THUS, WITHOUT GOING INTO MERITS OF THE ISSUE RAI SED IN THE APPEAL, THE PRESENT APPEAL BY REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, THE 10 TH DAY OF JUNE, 2021. SD/- SD/- (MANOJ KUMAR AGGRAWAL) (VIKAS AWASTHY) & / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, ,'/ DATED: 10/06/2021 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. - / THE APPELLANT , 2. ./ / THE RESPONDENT. 3. 0/ ( )/ THE CIT(A)- 4. 0/ CIT 5. 12./' , . . . , / DR, ITAT, MUMBAI 6. 23456 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI