ITO, WARD-2(1), PATNA V. M/S NAVYUG HOMES PVT LTD, PATNA

MA 1/PAT/2022

AI Insights

The case involves a Miscellaneous Application (M.A. No. 1/PAT/2022) filed by the Revenue against M/s. Navyug Homes Pvt. Ltd., concerning an order from the Income Tax Appellate Tribunal (ITAT) dated February 21, 2022. The Revenue contended that the assessee had routed income through a shell company to evade tax, despite the tax effect being below Rs. 50 lakhs, which typically would not warrant an appeal under CBDT Instruction No. 17 of 2019. The ITAT, however, found no substantial reason provided by the Revenue to classify the case under the exceptions of the said circular and dismissed the application, emphasizing the need to avoid unnecessary litigation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473127 (ITAT-PATNA)
• Duration Of Justice: 2 year(s) 1 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 23-09-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 19-08-2022
• Laws Referred To: CBDT Instruction No. 17 of 2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Tax effect

Judgement Text

" M.A. No. 1/PAT/2022 (in ITA No. 82/PAT/2020) Assessment Year: 2012-2013 M/s. Navyug Homes Pvt. Ltd. 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Rajpal Yadav, Vice-President (KZ) & Dr. Manish Borad, Accountant Member M.A. No. 1/PAT/2022 (in I.T.A. No. 82/PAT/2020) Assessment Year: 2012-2013 Income Tax Officer,………………………………Applicant Ward-2(1), Patna, Room No. 403C, 4th Floor, Lok Nayak Jai Prakash Bhawan, Patna-800001, Bihar -Vs.- M/s. Navyug Homes Pvt. Ltd.,....…………… Respondent B-210, Ambition Business Centre, Jamal Road, Patna-800001, Bihar [PAN: AACCN0742P] Appearances by: Shri Ashwani Kumar, Sr. D.R., appeared on behalf of the Revenue/Applicant Shri Shubham Khandelia, A.R., appeared on behalf of the assessee Date of concluding the hearing : September 23, 2024 Date of pronouncing the order : October 18, 2024 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The present Miscellaneous Application is filed by the Revenue pointing out an apparent error in the order of the M.A. No. 1/PAT/2022 (in ITA No. 82/PAT/2020) Assessment Year: 2012-2013 M/s. Navyug Homes Pvt. Ltd. 2 ITAT dated 21st February, 2022 passed in ITA No. 82/PAT/2020. 2. In the Miscellaneous Application, it has been contended by the Revenue that though the tax effect by virtue of relief given by the ld. CIT(Appeals) was less than Rs.50 lakhs and the appeal was not competent before the Tribunal in view of the CBDT Instruction bearing No. 17 of 2019. However, it has been pleaded further that the assessee has routed income through shell company in an organized manner to evade the tax. 3. With the assistance of ld. Representatives, we have gone through the record carefully. The Revenue has not pinpointed as to how this case falls in the exception provided at Serial No. 10 of Circular 17 of 2019. The addition made by the ld. Assessing Officer was of unexplained credit disbelieving the loan taken by the assessee and such addition was deleted by the ld. CIT(Appeals). This case does not fall in the exception available under clauses (a) to (f) in Serial No. 10 of the Circular. To our mind, it is frivolous application filed by the Revenue and we deprecate the conduct of the ld. Assessing Officer because on the one hand, Government is trying to avoid litigation and the ld. Assessing Officer has made all efforts to generate more litigation without M.A. No. 1/PAT/2022 (in ITA No. 82/PAT/2020) Assessment Year: 2012-2013 M/s. Navyug Homes Pvt. Ltd. 3 specifying any reason in the application as to how this case falls in the exception. Hence, it is dismissed. 4. In the result, the Miscellaneous Application of the Revenue is dismissed. Order pronounced in the open Court on 18.10.2024. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President Kolkata, the 18th day of October, 2024 Copies to :(1) Income Tax Officer, Ward-2(1), Patna, Room No. 403C, 4th Floor, Lok Nayak Jai Prakash Bhawan, Patna-800001, Bihar (2) M/s. Navyug Homes Pvt. Ltd., B-210, Ambition Business Centre, Jamal Road, Patna-800001, Bihar (3) CIT(Appeals), Patna-1; (4) CIT- , (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "