INCOME TAX OFFICER, WARD -1-5, JAIPUR V. M/S VKT GEMS PVT. LTD., JAIPUR

ITA 811/JPR/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4694 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDER SINGH
• Keywords: Tax effect
• Section: 147

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH JESK LH-'KEKZ] YS[KK LNL; DS LE{K BEFORE : SHRI RAMESH C.SHARMA, ACCOUNTA NT MEMBER VK;DJ VIHY LA-@ ITA NO. 811/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 THE ITO WARD- 1(5), JAIPUR CUKE VS. M/S. VKT GEMS PVT. LTD. 1810, IIND CROSSING, HALDIYON KA RASTA, JOHRI BAZAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AABCV 1774 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY: SHRI RAJENDER SINGH, ADDL. CIT-DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY :NONE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 31/07/2019 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 31/07/2019 VKNS'K@ ORDER PER RAMESH C. SHARMA, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A)-1, JAIPUR DATED 29-03-2019 FOR THE ASSESSM ENT YEAR 2007-08, IN THE MATTER OF ORDER PASSED U/S 143 (3)/ 147 OF THE I.T. ACT, 1961. 2.1 IN THIS APPEAL, THE TAX EFFECT IS BELOW THE LIM IT PRESCRIBED BY THE CBDT CIRCULAR NO. 03 OF 2018 DATED 20-08-2018. HOWE VER, IT WAS CONTENDED BY THE LD. DR THAT THE CASE IS COVERED BY EXCEPTIONAL CLAUSE ITA NO.811/JP/2019 ITO, WARD- 1(5), JAIPUR VS M/S. VKT GEMS P VT LTD. 2 10(E) OF THE CIRCULAR NO. 03 OF 2018. THE LD. DR HA S PLACED ON RECORD THE CIRCULAR DATED 20-08-2018 WHEREIN CLAUSE (E) READS AS UNDER (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI/ED/DRI/SFOI/ DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). 2.2 THE LD. DR HAS BEEN HEARD AND RECORD PERUSED. I HAVE CAREFULLY GONE THROUGH CLAUSE (E) OF THE CBDT CIRCULAR NO. 03 /2018 WHICH PROVIDES THAT WHERE ADDITION IS BASED ON INFORMATIO N RECEIVED FROM EXTERNAL SOURCES, THE DEPARTMENT IS TO FILE THE APP EAL EVEN IF THE TAX EFFECT IS BELOW THE PRESCRIBED LIMIT. HOWEVER, IN THIS CAS E, I FIND THAT IT WAS REOPENED ON THE BASIS OF AN INFORMATION OF DIRECTOR OF INVESTIGATION, INCOME TAX, WHICH IS NOT AN EXTERNAL SOURCE BUT IT WAS AN INTERNAL WING OF THE DEPARTMENT ITSELF. THUS AS PER MY CONSIDERED VI EW, IT IS NOT COVERED BY EXCEPTION AND SINCE THE TAX EFFECT IS LESS THAN RS. 20 LACS, THEREFORE, THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. A N UMBER OF JUDGEMENTS, HOLDING THE ISSUE IN FAVOUR OF THE ASSESSEE ON CLAU SE 10(E) OF THE SAID CIRCULAR BY THE ITAT, MUMBAI BENCH ARE AS UNDER:- 1. ACIT VS MM CORPORATION (M.A. NO.24/MUM/2019 ARISING OUT OF ITA NO.20152/MUM/2018) PRONOUNCED ON 23-07- 2019. 2. ITO VS LATE AMARCHAND P SHAH, THRU L/H (ITA NO. 818-820/MUM/2017 PRONOUNCED ON 08-07-2019 ITA NO.811/JP/2019 ITO, WARD- 1(5), JAIPUR VS M/S. VKT GEMS P VT LTD. 3 FOLLOWING THE ABOVE JUDICIAL PRONOUNCEMENTS, I DO N OT FIND ANY MERIT IN THE APPEAL FILED BY THE REVENUE HAVING TAX EFFECT OF PRESCRIBED LIMIT OF LESS THAN RS. 20 LACS. THUS THE APPEAL OF THE REVE NUE IS DISMISSED. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/07/201 9. SD/- JESK LH 'KEKZ (RAMESH C. SHARMA) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 31 /07/ 2019 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- ITO, WARD- 2(1), JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S.VKT GEMS PVT. LTD. , JAIPUR 3. VK;DJ VK;QDRVIHY ) @ CIT(A), 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.811/JP/2019) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR