DCIT 5(2)(1), Mumbai V. M/S KARP IMPEX LIMITED, Mumbai

MA 139/MUM/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4448 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 03-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL DESHPANDE
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D B ENCH , MUMBAI BEFOR E: HON BL E JUSTICE P.P. BHATT, PRESIDENT & SHRI M.BALAGANESH, AM M.A. NO. 139 / MUM/2020 (ARISING OUT OF I TA NO. 897 /MUM/ 2019 ( ASSESSMENT YEAR : 2007 - 08 ) & M.A. NO. 1 40 / MUM/2020 ( ARISING OUT OF I TA NO. 89 8 /MUM/ 2019 ( ASSESSMENT YEAR : 200 9 - 1 0 ) DCIT - 5(2)(1) R.NO.525, AAYAKAR BHAVAN M.K.ROAD, MUMBAI MAHARASHTRA - 400020 VS. M/S. KARP IMPEX LIMITED GE 3051, 3 RD FLOOR BHARAT DIAMOND BOURSE BKC BANDRA E AST MUMBAI 400 051 PAN/GIR NO. A ABCK1823F (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI SUNIL DESHPANDE ASSESSEE BY NONE DATE OF HEARING 26 / 03 /202 1 DATE OF PRONO U NCEMENT 26 / 03 /202 1 / O R D E R PER M. BALAGANESH (A.M) : BY VIRTUE OF THESE MISCELLANEOUS A PPLICATIONS, THE REVENUE SEE KS TO RECALL THE ORDER PASSED BY THIS TRIBUNAL ON 21/08/2019 WHEREIN TH ESE APPEAL S W E RE DISMISSED BY THE TRIBUNAL BY FOLLOWING THE CBDT CIRCUL AR M A NO . 139 & 14 0 /MUM/ 2020 M/S. KARP IMPEX LIMITED 2 NO.17/2019 DATED 08/08/2019 BY HOLDING THAT THE TAX EFFECT ON DISPUTED ISSUE WAS B ELOW THE PRESCRIBED MONETARY LIMIT FOR PREFERRING AP PE ALS BY THE REVENUE BEFORE TH IS TRIBUNAL. WE FIND THAT REVENUE HAD MENTIONED IN ITS MISCELLANEOUS APPLICATION THAT THE ADDITION MADE WAS ON ACCOUNT OF BOGUS PURCHASES WHICH WA S BASED ON INFORMATION RECEI VED FROM EXTERNAL AGENCIES AND THEREBY TH E S AME FALLS WITHIN THE EXCEPTION CLAUSE PROVIDED IN PA RA 10 (E) OF THE CBDT CIRCULAR. WE FIND THAT THE IMP UGNED APPEALS ARE AGAINST THE CANCELLATION OF PENALTY LEVIED BY THE LD. AO ON THE ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. IN OUR CONSIDERED OPINI ON, THE SAID EXCE PTION CLAUSE PARA 10 (E) WOULD APPLY ONLY FOR THE QUANTUM PROCEEDINGS AND NOT FOR PENALTY PROCEEDINGS. HENCE, WE HOLD THAT THE SAID AP PEALS DO NOT FALL UNDER THE EXCEPTION CLAUSE AND ACCORDING LY, THI S TRIBUNAL HAD RIGHTLY DISMISSED THE APPE ALS OF THE REVENUE BY FOLLOWING THE AFORESAID CBDT CIRCULAR. HENCE, NO ERROR COULD BE ATTRIBUTED ON THE SAID ORDERS OF THIS TRIBUNAL WARRANTING ANY RECTIFICATION . 2. IN THE RESULT, MISCELLANEOUS APPLICATIONS OF TH E REVENUE ARE DISMISSED. ORDER PRONOUNCE D ON 26 / 03 / 202 1 BY WAY OF PRO PER M ENTIONING IN T HE NOTICE BOARD. SD/ - ( JUSTI CE P.P. BHATT ) SD/ - (M.BALAGANESH) PRESIDENT ACCOUNTANT MEMB ER MUMBAI ; DATED 26 /03 / 202 1 KARUNA , SR.PS M A NO . 139 & 14 0 /MUM/ 2020 M/S. KARP IMPEX LIMITED 3 COPY OF THE O RDER FORWARDED TO : BY ORDER, ( ASSTT. REGIST RAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITA T, MUMBAI 6. GUARD FILE. //TRUE COPY//