ITO 10(1)(1), MUMBAI V. M/S HEIGHTEN TRADING COMPANY , MUMBAI

ITA 834/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9389 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2011-2012
• Appeal Filed On: 31-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURBINDER SINGH
• Keywords: Tax effect

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI SHRI SHAMIM YAHYA (AM) & SHRI C.N. PRASAD (JM) I.T.A. NO. 834/MUM/2020 (ASSESSMENT YEAR 2011-12) ITO-10(1)(1) ROOM NO. 25 GROUND FLOOR AAYAKAR BHAVAN M.K. ROAD CHURCHGATE MUMBAI-400 020. VS. M/S. HEIGHTEN TRADING COMPANY 4, KINGSTON, SHASTRI NAGAR, LOKHANDWALA COMPLEX, ANDHERI-W MUMBAI-400053. PAN : AAACH9438G (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI ABHISHEK JHUNJHUNWALA DEPARTMENT BY SHRI GURBINDER SINGH DATE OF HEARING 22.07.2021 DATE OF PRONOUNCEMENT 23.07.2021 O R D E R PER SHAMIM YAHYA (AM) :- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST ORDE R OF LEARNED CIT-A DATED 19.11.2019 AND PERTAINS TO ASSESSMENT YEAR 20 11-12. 2. THE GROUNDS OF APPEAL READ AS UNDER :- 1. 'ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE MADE ON ACCOU NT OF SHARE APPLICATION MONEY AMOUNTING TO RS. 10,00,000/ - RECEIVED FROM THE BOGUS PARTIES? 2. 'ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING RELIEF TO THE ASSESSEE, AND THE CASE OF THE ASSESSEE, FALLS UNDER EXCEPTION CLAUSE AS PER CBDT CIRCULAR NO. 03/2018 DATED 11.07.2018 & CBDT CIRCULAR NO. 17/2019 [FURTHER AM ENDED BY CBDT LETTER BEARING F. NO. 279/MISC.L42/2007-ITJ (FT) DATED 20.0 8.2018. ' 3. AT THE OUTSET LD COUNSEL OF THE ASSESSEE SUBMITT ED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT OF RS. 50,00,000/- FIX ED BY CBDT VIDE CIRCULAR NO. 17/2019 DATED 8/8/2019 FOR FILING APPEAL BEFORE THE ITAT. HENCE LEARNED COUNSEL SUBMITTED THAT THIS APPEAL BY THE REVENUE I S NOT MAINTAINABLE. M/S. HEIGHTEN TRADING COMPANY 2 4. PER CONTRA LEARNED DEPARTMENTAL REPRESENTATIVE S UBMITTED THAT THE APPEAL FALLS IN THE EXCEPTIONS CARVED IN SAID CIRCU LAR QUA INFORMATION RECEIVED FROM OUTSIDE AGENCY. 5. UPON CAREFUL CONSIDERATION WE FIND THAT THE TAX EFFECT IS BELOW THE LIMIT FIXED BY CBDT FOR FILING APPEALS BEFORE THE ITAT. T HE PLEA OF THE CASE RELATING TO INFORMATION RECEIVED FROM OUTSIDE AGENCY IS NOT SUSTAINABLE AS INFORMATION IS RECEIVED BY AO FROM INVESTIGATION WING OF INCOME TAX DEPARTMENT ITSELF WHICH CANNOT BE SAID TO BE AN OUTSIDE AGENCY. HENCE THIS APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED IN LIMINE. ACCORD INGLY THE APPEAL STANDS DISMISSED AS SUCH. PRONOUNCED IN THE OPEN COURT ON 23.7.2021. SD/- SD/- (C.N. PRASAD) (S HAMIM YAHYA) JUDICIAL MEMBER ACCO UNTANT MEMBER MUMBAI; DATED : 23/07/2021 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR) PS ITAT, MUMBAI