ITO 27(1)(5), MUMBAI V. SHRI JILESH DEEPAK PAREKH, MUMBAI

MA 151/MUM/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1863 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-12-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 11-03-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MANISH J SHETH
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER MA NO. 151/MUM/2020 (IN5287/MUM/2018) ( ASSESSMENT YEARS: 2009-10 ) ITO 27(1)(5) 4 TH FLOOR, TOWER NO. 6, ROOM NO. 410, VASHI, NAVI MUMBAI 400703. / VS. SHRI JILESH DEEPAK PAREKH 1 ST FLOOR, PAREKH NIWAS, OPP UDAY TALKIES, 5 TH ROAD, GHATKOPAR (W), MUMBAI 400086 ./ ./ PAN/GIR NO. : ADHPP2547D ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VIJAY KUMAR, DR / RESPONDENT BY : SHRI MANISH J. SHETH, AR / DATE OF HEARING 06/11/2020 !'# / DATE OF PRONOUNCEMENT 01/12/2020 / O R D E R PER PAVAN KUMAR GADALE - JM: THE REVENUE HAS FILED THE MISCELLANEOUS APPLICATION SEEKING RECALL OF THE HONBLE ITAT ORDER DATED 30.0 9.2019. 2. AT THE TIME OF HEARING, LD. DR SUBMITTED THAT TH E HONBLE ITAT HAS DISMISSED THE APPEAL OF THE REVENU E ON THE GROUND THAT THE TAX EFFECT IS BELOW THE MONETAR Y LIMIT AS PER THE CBDT CIRCULAR NO. 17/2019 DATED MA NO. 151 /MUM/2020 JILESH DEEPAK PAREKH., MUMBAI. - 2 - 08.08.2019.BUT THERE ARE SOME EXCEPTION CLAUSES, AS PER CLAUSE E TO PARA 10 OF THE CIRCULAR NO. 3 OF 2018 AS AMENDED, THE CASES REFERRED IN THIS CLAUSE ARE NOT COVERED. IN THE PRESENT CASE THE CIT(A) APPEAL HAS GRANTED T HE RELIEF TO THE ASSESSEE ON ESTIMATING THE INCOME @ 12.5% OF THE BOGUS PURCHASES AS PER THE INFORMATION OBTAINED FRO M THE MAHARASHTRA SALES TAX DEPARTMENT. 3. CONTRA, THE LD. AR OF THE ASSESSEE SUPPORTED THE ORDER OF THE HONBLE TRIBUNAL AND REFERRED TO CLAUSE E OF PARA 10 OF THE CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 AS UNDER: WHERE ADDITION IS BASED ON INFORMATION RECEIVED FR OM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES S UCH AS CBI/ED/DRI/SFIO/DIRECTORATE GENERAL OF GST INTELLIG ENCE (DGGI). 3.1 FURTHER, THE LD. AR MENTIONED THAT FOR THE A.Y 2009-10 THE PROVISIONS OF GST WERE NOT BEEN APPLICABLE. THE LDAR ALSO SUBMITTED THAT TAX EFFECT IN THE APPEAL IS RS. 40,961/- WHICH ALSO INCLUDES INTEREST COMPONENT. 4. THE CIT(A) CONSIDERING THE FACTS AND THE JUDICI AL DECISIONS OF THE COORDINATE BENCH OF ITAT HAS RESTR ICTED THE ESTIMATION OF INCOME ON BOGUS PURCHASES @ 12.5 % WHICH WORKED OUT TO RS.19,505/- AND ON THE RELIEF G RANTED MA NO. 151 /MUM/2020 JILESH DEEPAK PAREKH., MUMBAI. - 3 - BY THE CIT(A), THE TAX EFFECT IS MUCH BELOW THE LI MIT PRESCRIBED UNDER CBDT CIRCULAR NO. 17 OF 2019 DATE D 08.08.2019. 5. WE FIND THAT THE HONBLE TRIBUNAL HAS DISMISSED THE APPEAL ON MONETARY LIMIT AS THE TAX EFFECT IN THE P RESENT APPEAL IS BELOW THE LIMIT PRESCRIBED UNDER CBDT CIR CULAR NO. 17 OF 2019.THE CIT(A) HAS CONSIDERED THE COORDI NATE BENCH DECISIONS AND HAS RESTRICTED THE DISALLOWANCE TO 12.5%. EVEN IF WE GO INTO THE MERITS OF THE CASE AS ENVISAGED BY THE LD. AR, THE HONBLE TRIBUNAL HAS T O FOLLOW THE JUDICIAL PRECEDENCE OF ITS ORDERS, WHICH CIT(A) HAS FOLLOWED AND GRANTED RELIEF TO THE ASSESSEE. THEREF ORE, WE DO NOT FIND MERITS IN THE SUBMISSIONS OF THE LDDR AND DISMISS THE GROUNDS RAISED BY THE REVENUE. 6. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01.12.2020 SD/- SD/- (RAJESH KUMAR) (PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 01/12/2020 MA NO. 151 /MUM/2020 JILESH DEEPAK PAREKH., MUMBAI. - 4 - KRK, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. &'( ) / THE CIT(A) 4. ) ( ) / CONCERNED CIT 5. ,-. //'( , '(# , & / DR, ITAT, MUMBAI 6. .34 5 / GUARD FILE. / BY ORDER, , / //TRUE COPY// 1. / ( ASST. REGISTRAR) !' #, / ITAT, MUMBAI