Income-tax Officer, Ward - 6(4), Pune V. Yusuf Gulammohmmed Patel, Pune

MA 149/PUN/2022

AI Insights

The case revolves around the Revenue's attempt to recall a Tribunal order that dismissed its appeal against a penalty deletion by the CIT(A). The original penalty was imposed following reassessment proceedings under section 147, based on information from the DGIT (Inv) Pune. The Tribunal's earlier decision to dismiss the appeal was on the grounds of low tax effect, which the Revenue contested, citing an exception in the CBDT Circular that pertains to cases involving information from external law enforcement agencies. However, the Tribunal found that the information in this case was internal and thus did not meet the criteria for the exception.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136346 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 4 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-01-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 17-10-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 147; 271(1)(c); 143(3); 254(2)

Judgement Text

॥आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / MA No.149/PUN/2022 (Arising out of ITA No.1861/PUN/2018) धििाारणवर्ा / Assessment Year : 2009-10 Income Tax Officer Ward-6(4), Pune . . . . . . . अपीलार्थी / Applicant बिाम / V/s Yusuf Gulammohmmed Patel, Flat No.13, Madani Society, 30, Ghorpade Peth, Pune – 411 042 PAN: ANZPB4042M . . . . . . . . प्रत्यर्थी / Respondent द्वारा/ Appearances Assessee by : None Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of conclusive Hearing : 20/01/2023 घोषणा की तारीख / Date of Pronouncement : 20/01/2023 आदेश/ ORDER PER G. D. PADMAHSHALI, AM; The present Miscellaneous Application [ for short “MA” ] of the Revenue sought our indulgence for recalling the order of this Tribunal passed u/s 254(1) of the Income Tax Act [for short “the Act”] while disposing off the Revenue’s appeal on low tax effect for the assessment year 2009-10 in ITA No.1861/PUN/2018 dt. 24/07/2019. Yusuf Gulammohmmed Patel MA No. 149/PUN/2022 (Arising out of ITA No.1861/PUN/2018) ITAT-Pune Page 2 of 4 2. On a perusal of the aforesaid miscellaneous application, it transpires that the revenue-applicant has sought our indulgence for recalling aforestated order contending that, the matter of the impugned order falls within the exception carved out by clause 10(e) of amended Circular No 3/2018 dt. 20/08/2018. 3. We have heard the rival contentions of both the parties; and subject to the provisions of rule 18 of Income Tax Appellate Tribunal Rules, 1963 [for short “ITAT, Rules”] perused the material placed on records and duly considered the facts of the case in the light of settled legal position forewarned to either parties. 4. On the perusal of case records its ostensibly evident that, the Revenue on the basis of information from Investigation Wing of Director General of Income Tax i.e. DGIT (Inv) Pune had initiated the reassessment proceedings u/s 147 and upon the culmination of assessment u/s 143(3) r.w.s 147, a penalty u/s 271(1)(c) was imposed by the separate order. The said penalty in an Yusuf Gulammohmmed Patel MA No. 149/PUN/2022 (Arising out of ITA No.1861/PUN/2018) ITAT-Pune Page 3 of 4 appeal was deleted by the Ld. CIT(A), wherein the impugned deletion was contested by the Revenue in an appeal before this Tribunal in ITA No. 1861/PUN/2018 which was dismissed on low tax effect. 5. We note that, the para 10 of the aforestated CBDT circular lists certain exceptional circumstances where the said circular have no effect and clause (e) thereof reads as under; (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ED/DRI/SFIO/ Director General of GST Intelligence (DGGI) (Emphasis supplied) 6. We have given a thoughtful consideration and are of a strong conviction that, the reliance placed by the Ld. DR on Clause 10(e) (supra) is absolutely misconceived or in fact misplaced for following two reasons as; 1. Firstly, the said exception applies when any information is received from external sources and not otherwise. Per contra in the impugned case, the information was received from within the department Yusuf Gulammohmmed Patel MA No. 149/PUN/2022 (Arising out of ITA No.1861/PUN/2018) ITAT-Pune Page 4 of 4 i.e. DGIT (Inv) which is not an external source or agency as envisaged by clause 10(e). 2. Secondly, the clause 10(e) specifically talks about ‘addition based upon information’, consequently same cannot have an application to the impugned case. 7. Apart from aforestated observation, since the Revenue failed to bring out to our notice any rectifiable mistake apparent from record which can indeed be rectified u/s 254(2) of the Act, hence the present miscellaneous application of the Revenue stands DISMISSED. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Friday 20 th day of January, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ PUNE ; ददनाांक / Dated : 22 nd day of February, 2023. आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr.CIT-3, Pune (MH-India) 4. The CIT(A)-, Pune(MH-India) 5. DR, ITAT, Pune Bench ‘B’, Pune 6.गार्डफ़ाइल / Guard File. आदेशानुसार / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्यायादधकरण, पुणे / ITAT, Pune.