DCIT, CIRCLE-6, PUNE V. SIZE CONTROL GAUGES & TOOLS PRIVATE LIMITED, PUNE

MA 141/PUN/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3894 (ITAT-PUNE)
• Duration Of Justice: 8 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-02-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 12-06-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Retrospective amendment; Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER M.A.Nos.141 to 143/PUN./2023 Arising out of I.T.A.Nos.6, 7 & 8/PUN./2020 Assessment Years 2009-2010, 2010-2011 & 2011-2012 The DCIT, Circle-6, Pune. Maharashtra. vs M/s. Size Control Gauges & Tools Pvt. Ltd., Plot No.100/101, Tiny Industries Co-Op. Estate Ltd., Pisoli Road, Kondhwa (Bk), Pune – 411 048 PAN AACCS3670F Applicant Respondent Revenue by : Shri Akhilesh Srivastava, JCIT Assessee by : Shri Prayag Jha Date of Hearing : 02.02.2024 Date of Pronouncement : 13.02.2024 ORDER PER SATBEER SINGH GODARA, J.M. : These Revenue’s three miscellaneous applications M.A.Nos.141 to 143/PUN./2023 filed u/s.254(2) of the of the Income Tax Act, 1961 (in short "the Act"), seeks to recall/rectify our common order dated 27.07.2022 passed in its corresponding main appeals ITA.Nos.6, 7 & 8/PUN./2020; for assessment years 2009-2010 to 2011-12, dismissing the same for having involved tax effect of Rs.13,65,776/-; Rs.38,42,781/- and Rs.31,70,815/-; respectively; as less than the prescribed minimum tax effect of Rs.50 lakhs in CBDT’s 2 M.A.Nos.141 to 143/PUN./2023 latest circular no.17/2019 dated 08.08.2019 made applicable with retrospective effect. Heard both the parties at length. Case files perused. 2. Learned DR invited our attention to the Revenue’s instant miscellaneous applications’ identical pleadings as under : “6.1. The Hon'ble ITAT pronounced the order only in view of the lower monetary limit without going into merits of the issue raised in the appeal. 6.2. The information in this case was received from the Sales Tax Department Maharashtra (being an external agency) therefore, the case is covered under para 10 of the CBDT's instruction No.3/2018 dated 11/07/2018 as amended vide letter dated 20/08/2018 and therefore falls under exceptions laid down in clause (e) of Para 10 of the CBDT Circular. 6.3. In view of the above, it is humble prayed before your honour that, A. On the facts and in the circumstances of the case, the Hon'ble ITAT erred in dismissing the Revenue's appeal bearing ITA No 06 /PUN/2019 for A.Y. 2009- 10 merely in view of the monetary limits of tax effect involved in the case as per CBDT's Circular No.3/2018 dated 3 M.A.Nos.141 to 143/PUN./2023 11/07/2018 as amended vide letter dated 20/08/2018, when it should be decided on merits as the case falls under exceptions laid down in clause (e) of Para 10 of the CBDT Circular as amended vide letter dated 20/08/2018. B. On the facts and in the circumstances of the case, the Hon'ble ITAT is prayed to consider the fact that the case under consideration falls under the exceptions laid down in clause (e) of Para 10 of the CBDT's Circular No.3/2018 dated 11/07/2018, as amended vide letter dated 20/08/2018, as the information was received from Sales Tax Department (external agency). C. For these and such other reasons as may be urged at the time of hearing, it is prayed that appeal of the revenue may kindly be restored for decision on merit and consequentially the order of the CIT(A) may be vacated and that of the Assessing Officer be restored. D. The appellant craves, leave to add, amend, alter or delete any of the above grounds of appeal/prayer during the course of appellate proceedings before the Hon'ble Tribunal. 7. In view of the above, it is prayed that the order dated 27/07/2022 passed by the Hon'ble ITAT "B" Bench, Pune in ITA No. 06/PUN/2019, may kindly be recalled and the 4 M.A.Nos.141 to 143/PUN./2023 appeal of the assessee may be decided taking into consideration the facts as mentioned in Para 6 above. Hence, a miscellaneous application to the Hon'ble Tribunal is hereby filed. 3. We have given our thoughtful consideration to Revenue’s identical vehement submissions and find no merit therein that our impugned order deserves to be recalled as all these cases fall within the exception clause in para 10(e) of the CBDT’s foregoing circular in light of this tribunal’s order passed in M.A.No.60/PUN/2019 dt. 14-01-2020 has already rejected the very stand as under : “2. We have heard the rival submissions and scanned through the relevant material on record. Having found that the tax effect in the instant appeal referred to by the Revenue is less than the monetary limits of Rs.50.00 lakh, the Tribunal dismissed the appeal of Revenue by virtue of CBDT Circular No.17/2019 dated 08-08-2019 revising upward the monetary limit to Rs.50.00 lakh for filing of appeals by the Department in Income-tax Cases before various appellate forums. 3. As regards the contention of the ld. DR that the appeal should not have been dismissed because the additions in the above case was made on the basis of information received from the Sales Tax Department, Govt. 5 M.A.Nos.141 to 143/PUN./2023 of Maharashtra about the assessee indulging in hawala transactions and hence covered in the exception clause of the Circular as referred to above, we find that such a contention has not been countenanced by the Pune Benches of the Tribunal in several cases including ITO vs. M/s Param Marketing (ITA No.1872/PUN/2019 dt.30-01- 2020) and ITO vs. Yusuf Gulmmohmmed Patel (ITA No.1852/PUN/2019 dt.30-01-2020). Not only that, even the Miscellaneous application filed u/s 254(2) on this issue has also been dismissed in DCIT vs. M/s Rang Rasayan (M.A.No.60/PUN/2019 dt. 14-01-2020). No contrary view has been brought to our notice on behalf of the Revenue. Respectfully following the above precedent, we are not inclined to accept the Miscellaneous application filed by the Revenue.” Ordered accordingly in very terms in all these Revenue’s three miscellaneous applications. 4. These Revenue’s three miscellaneous applications M.A.Nos.141 to 143/PUN./2023 are dismissed in above terms. A copy of this common order be placed in the respective case files. 6 M.A.Nos.141 to 143/PUN./2023 Order pronounced in the open Court on 13.02.2024. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 13 th February, 2024 VBP/- Copy to 1. The applicant 2. The respondent 3. The CIT(A) concerned 4. The Pr. CIT, Pune concerned 5. D.R. ITAT, Pune “B” Bench, Pune. 6. Guard File. //By Order// //True Copy // Assistant Registrar, ITAT, Pune Benches, Pune.