Deputy Commissioner of Income-tax,Circle-1, Jalgaon V. Chhabi Electricals Pvt. Ltd., Jalgaon

MA 1/PUN/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5522 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 15-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E . , , ! ' , # $ BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AW ASTHY, JM M.A. NO. 01/PUN/2019 (ARISING OUT OF ITA NO. 588/PUN/2016) #% & '& / ASSESSMENT YEAR : 2009-10 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, JALGAON. .. /APPLICANT % / V/S. CHHABI ELECTRICALS PVT. LTD. PLOT NO. E-66, MIDC AREA, AJANTHA ROAD, JALGAON-425 003. PAN: AABCC3660J . / RESPONDENT ASSESSEE BY : SHRI C.H. NANIWADEKAR REVENUE BY : SHRI RAJESH GAWALI / DATE OF HEARING : 05.04.2019 / DATE OF PRONOUNCEMENT : 03.06.2019 ( / ORDER PER VIKAS AWASTHY, JM THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY THE REVENUE U/S.254(2) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WITH A PRAYER TO RECALL THE ORDER OF TRIBUNAL DATED 19.07 .2018 IN ITA NO.588/PUN/2016 FOR THE ASSESSMENT YEAR 2009-10. 2 MA NO. 01/PUN/2019 A.Y.2009-10 2. SHRI RAJESH GAWALI REPRESENTING THE DEPARTMENT SUBMIT TED THAT THE TRIBUNAL VIDE ORDER DATED 19.07.2018 HAS DISMISSED THE APP EAL OF REVENUE ON GROUND OF LOW TAX EFFECT. THE RE-ASSESSMENT PROCEEDING S IN THE CASE OF ASSESSEE WERE INITIATED ON THE BASIS OF INFORMATION RECE IVED FROM SALES TAX DEPARTMENT, GOVT. OF MAHARASHTRA. THUS, THE CASE OF ASSE SSEE FALLS WITHIN THE EXCEPTION SPECIFIED AT PARA 10(E) OF THE CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 AND FURTHER AMENDED BY CBDT LETTER F.N O 279/MISE.142/2007-ITJ(PT) DATED 20.08.2018. AS PER AMENDE D PARA 10 OF CBDT CIRCULAR THE MONETARY LIMIT FOR FILING APPEALS BY THE DE PARTMENT WOULD NOT APPLY WHERE ADDITION IS BASED ON INFORMATION REC EIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIE S SUCH AS CBI, ED, DRI, SFIO, DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI) ETC. SINCE, IN THE PRESENT CASE INFORMATION WAS RECEIVED FROM SALES TAX DEPARTMENT, GOVT. OF MAHARASHTRA, THE APPEAL OF REVENUE FALLS WITHIN THE EXCEPTION. THUS, OUTSIDE THE PARAMETERS OF MONETARY LIMIT FIXED FOR FILING APPEALS BY DEPARTMENT. 3. ON THE OTHER HAND, SHRI C.H. NANIWADEKAR APPEARING ON BEHALF OF ASSESSEE SUBMITTED THAT THE CBDT CIRCULAR SPECIFIES THE M ONETARY LIMITS FOR FILING APPEAL BY REVENUE AND IN THE PRESENT APPEAL TAX EFFECT IS LESS T HAN THE LIMIT FIXED BY CBDT. HE FURTHER CONTENDED THAT IN THE PRESENT CASE, INFORMATION WAS RECEIVED FROM SALES TAX DEPARTMENT, GOVT. O F MAHARASHTRA WHICH DOES NOT FALL WITHIN THE EXCEPTIONS MENTIONED IN PARA 10 OF THE SAID CIRCULAR. 4. WE HAVE HEARD THE SUBMISSIONS MADE BY REPRESENTATIV ES OF RIVAL SIDES. THE MISCELLANEOUS APPLICATION HAS BEEN FILED BY REVENUE TO RECALL 3 MA NO. 01/PUN/2019 A.Y.2009-10 THE ORDER OF TRIBUNAL IN ITA NO.588/PUN/2016 (SUPRA.) ON THE GROUND THAT CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018 DOES NOT APP LY IN THE INSTANT CASE AS IT IS COVERED UNDER EXCEPTION (E) MENTIONED IN PARA 1 0 OF THE CBDT CIRCULAR AS AMENDED BY BOARD LETTER F NO 279/MISE.1 42/2007- ITJ(PT) DATED 20.08.2018. BEFORE PROCEEDING FURTHER, IT WOULD BE RELEVANT TO REPROD UCE THE RELEVANT CLAUSE ON WHICH THE DEPARTMENT IS RELYING FOR RE CALLING THE ORDER OF TRIBUNAL AND THE SAME READS AS UNDER: 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING IS SUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EF FECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE O R THERE IS NO TAX EFFECT : (A) XXXXXX (B) XXXXXX (C) XXXXXX (D) XXXXXX (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FRO M EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES S UCH AS CBI/ED/DRI/SFIO/DIRECTORATE GENERAL OF GST INTELLIG ENCE (DGGI). (F) XXXXXX CLAUSE (E) IN PARA 10 OF CBDT CIRCULAR SPECIFIES THAT THE CIRC ULAR DOES NOT APPLY WHERE INFORMATION IS RECEIVED FROM ENFORCEMENT AGENCIES SUCH AS CBI, ED, DRI, SFIO, DIRECTORATE GENERAL OF GST IN TELLIGENCE (DGGI) ETC. IT IS EVIDENT FROM CIRCULAR THAT THE ENFORCEMENT AGEN CIES REFERRED ARE CENTRAL ENFORCEMENT AGENCIES. THERE IS NO MENTION OF ENFOR CEMENT AGENCIES/DEPARTMENT OF THE STATE GOVERNMENT SUCH AS S ALES TAX DEPARTMENT. 5. IN THE INSTANT CASE, RE-ASSESSMENT PROCEEDINGS WERE INITIATED ON THE BASIS OF INFORMATION RECEIVED FROM MAHARASHTRA STATE SALES TAX DEPARTMENT. THUS, WE ARE OF CONSIDERED VIEW THAT THE EXC EPTION MENTIONED IN PARA 10 (E) OF THE CBDT CIRCULAR NO. 3 OF 2018 (SUPRA.) D OES NOT COVER 4 MA NO. 01/PUN/2019 A.Y.2009-10 INFORMATION RECEIVED FROM STATE SALES TAX DEPARTMENT. HENC E, THE MONETARY LIMIT AS FIXED BY CBDT TO FILE APPEALS BY THE DEPA RTMENT WOULD APPLY IN THE FACTS OF THE PRESENT CASE. WE DO NOT FIND ANY MERIT IN THE CONTENTIONS OF THE REVENUE. THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE SEEKING RECALLING OF THE TRIBUNAL ORDER IS DISMISSED, ACCORDIN GLY. 6. IN THE RESULT, MISCELLANEOUS APPLICATION FILED BY THE REVEN UE IS DISMISSED. ORDER PRONOUNCED ON MONDAY, THE 3RD DAY OF JUNE, 2019. SD/- SD/- ( . / D. KARUNAKARA RAO ) ( ! ' /VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; ! / DATED : 3 RD JUNE, 2019. SB ( ) *#+,! -!'+ / COPY OF THE ORDER FORWARDED TO : 1. '# / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-2, NASHIK. 4. THE PR. CIT-2, NASHIK. $% &'(#)* , '#')* , +,- , / DR, ITAT, B BENCH, PUNE. 6. (./01 / GUARD FILE. // TRUE COPY // 2 / BY ORDER, 3# )- / PRIVATE SECRETARY '# ')* , / ITAT, PUNE. 5 MA NO. 01/PUN/2019 A.Y.2009-10 DATE 1 DRAFT DICTATED ON 28 .05.2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 28 .05.2019 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER