Deputy Commissioner of Income-tax, Circle - 1, Nashik V. Lalji Jetsi Maheshwari, Nashik

MA 155/PUN/2022

AI Insights

The case involves multiple Miscellaneous Applications (MAs) filed by the Revenue against various respondents, all related to different assessment years. The Revenue sought to recall the Tribunal's composite order dated 29-08-2019, which had dismissed their appeals due to the low tax effect. The Revenue argued that the appeals should be reconsidered as the additions were based on information from the DGCEI/Sales Tax Department regarding the respondents' involvement in hawala transactions, which allegedly falls under an exception in the CBDT Circular No. 03/2018. However, the Tribunal, referencing several precedents, dismissed the MAs, affirming that the monetary limit for filing appeals was not exceeded and that the exceptions cited did not apply.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137894 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 20-04-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 27-02-2020
• Other Referred Cases: ITO vs. M/s Param Marketing, ITO vs. Yusuf Gulmmohmmed Patel, DCIT vs. M/s Rang Rasayan
• Laws Referred To: CBDT Circular no. 03/2018, CBDT Circular No.17/2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURI, JUDICIAL MEMBER Miscellaneous Application No.150/PUN/2022 (arising out of ITA No.2276/PUN/2017) Assessment Year : 2010-11 1. ACIT, Central Circle-2, Aurangabad Vs. Shri Anand Omprakash Pahade, Prop. Adinath Steel Re-rolling Mill, Plot No.A-28/05, Addl. MIDC, Jalna-431203. PAN: ALSPP4628A (Applicant) (Respondent) Miscellaneous Application No.155/PUN/2022 (arising out of ITA No.390/PUN/2019) Assessment Year : 2011-12 2. DCIT, Circle-1, Nashik Vs. Lalji Jetsi Maheshwari, Prop. Maheshwari Steel Mart Geeta Timber Compound, Agra Road, A/p. Ojhar (Mig) Tal. Niphad, Dist. Nashik-422 206 PAN:AKFPM3322C (Applicant) (Respondent) Miscellaneous Application No.154/PUN/2022 (arising out of ITA No.1091/PUN/2018) Assessment Year : 2008-09 3. DCIT, Panvel Circle, New Panvel, Dist. Raighad Vs. M/s. Agarwal Petrochem Pvt. Ltd., Plot 37, MIDC Industrial Area, Taloja, Raighad. PAN: AAECA9473C (Applicant) (Respondent) Miscellaneous Application No.156/PUN/2022 (arising out of ITA No.217/PUN/2017) Assessment Year : 2009-10 4. ACIT, Circle-1, Nashik Vs. Jayant Ashok Joshi, Krishna Kunj, Rajpal Colony, Makhmalabad, Panchvati, Nashik – 422 003, PAN : ABEPJ3735C (Applicant) (Respondent) M.A.No.150/PUN/2022 Anand Omprakash Pahade and others 2 Assessee by : Sl.No.1 None Sl.No.2 - None Sl.No.3 – Shri Anil Lodha Sl.No.4 – Shri Sanket M. Joshi Revenue by Ms. Deepali Kalbandhe Date of Hearing : 21-04-2023 Date of Pronouncement : 26-04-2023 ORDER PER R.S.SYAL, VP : These Miscellaneous applications have been moved by the Revenue requesting to recall the composite order of the Tribunal passed on 29-08-2019. At the very outset, the ld. DR submitted that the Tribunal dismissed the appeals of the Revenue on account of low tax effect. Albeit, the ld. DR, while admitting that the tax effect in the captioned appeals which was dismissed by the Tribunal was less than Rs.50.00 lakh, submitted that the additions in these appeals were based on the information received by the Assessing Officer from the Director General of Central Excise Intelligence (DGCEI)/Sales Tax Department, Govt. of Maharashtra that the assessee(s) were one of the beneficiaries indulging in the Hawala transactions. It was ergo prayed that the appeals fall under exception prescribed in clause (e) of para 10 of the CBDT Circular no. 03/2018 dated 11-07-2018 read with its amendment dated M.A.No.150/PUN/2022 Anand Omprakash Pahade and others 3 20-08-2018 and hence, the Tribunal order dated 29-08-2019 needs to be recalled for adjudication of the appeals on merit. 2. We have heard the rival submissions and gone through the relevant material on record. There is no appearance from the side of assessee(s) at Sl.No.1 and 2. We, are, therefore, proceeding to dispose of the appeal(s) ex parte qua the assessee(s). Having found that the tax effect in the instant appeals referred to by the Revenue are 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 appeals should not have been dismissed because the additions in the above cases were made on the basis of information received from the Director General of Central Excise Intelligence (DGCEI)/Sales Tax Department, Govt. of Maharashtra about the assessee(s) 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 M.A.No.150/PUN/2022 Anand Omprakash Pahade and others 4 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 applications filed by the Revenue. 4. In the result, the Miscellaneous applications are dismissed. Order pronounced in the Open Court on 26 th April, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दनांक Dated : 26 th April, 2023 Satish आदेश क त ल प अ े षत / Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The Pr. CIT concerned 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “A”/ DR ‘A Bench’, ITAT, Pune; 5. गाड फाईल / Guard file. // True copy // आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune M.A.No.150/PUN/2022 Anand Omprakash Pahade and others 5 Date 1. Draft dictated on 26-04-2023 Sr.PS 2. Draft placed before author 26-04-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *