Deputy Commissioner of Income-tax, Central Circle -2, Aurangabad V. M/s. Om Sai Ram Steel And Alloys Pvt.Ltd, Jalna

MA 20/PUN/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2890 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 20-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY , JUDICIAL MEMBER MISCELLANEOUS APPLICATION NO. 20 / PUN /20 2 1 ( ARISING OUT OF ITA NO. 1 847 /PUN /201 8 ) ASSESSME NT YEAR : 20 11 - 12 DCIT, CIRCLE - 2 , AURANGABAD VS. M/S. OM SAI RAM STEEL & ALLOYS PVT. LTD., PLOT NO.F - 1 & 2, ADDL. MIDC AREA, JALNA 431203 PAN : AAACO6232H (APPLICANT) (RESPONDENT) REVENUE B Y : SHRI VITTHAL BHOSALE ASSESSEE B Y : NONE D ATE OF HEARING : 18.06.2021 DATE OF PRONOUNCEMENT : 18 . 0 6 .2021 ORDER PER R.S.SYAL , VP : TH IS MISCELLANEOUS APPLICATION HA S BEEN MOVED BY THE REVENUE REQUESTING TO RECALL THE ABOVE QUOTED APPEAL ORDER FROM THE C OMPOSITE ORDER OF THE TRIBUNAL PASSED O N 29.08.2019. AT THE VERY OUTSET, THE LD. DR SUBMITTED THAT THE TRIBUNAL DISMISSED THE APPEAL OF THE REVENUE ON ACCOUNT OF LOW TAX EFFECT. ALBEIT, THE LD. DR, WHILE ADMITTING THAT THE TAX EFFECT IN THE CAPTIONED APPEAL WHICH W AS DISMISSED BY THE TRIBUNAL WA S LESS THAN RS.50.00 LAKH, SUBMITTED THAT THE ADDITION IN TH IS APPEAL W AS BASED ON THE M.A. NO. 20 / PUN/20 2 1 M/S. OM SAI RAM STEEL & ALLOYS PVT. LTD. 2 INFORMATION RECEIVED BY THE ASSESSING OFFICER FROM THE SALES TAX DEPARTMENT THAT THE ASSESSEE WAS ONE OF THE BENEFICIARIES INDULGING IN THE HAWALA TRANSACTIONS. IT W AS ERGO PRAYED THAT THE APPEAL 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 20 - 08 - 2018 AND HENCE , THE TRIBUNAL ORDER DATED 29 - 08 - 2019 NEED S TO BE RECALLED FOR ADJUD ICATION OF THE APPEAL ON MERIT. 2. WE HAVE HEARD THE LD. DR THROUGH VIRTUAL COURT AND SCANNED THROUGH THE RELEVANT MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF THE ASSESSEE DESPITE NOTICE . HAVING FOUND THAT THE TAX EFFECT IN THE INSTANT A PPEAL REFERRED TO BY THE REVENUE IS LESS THAN THE MONETARY LIMITS OF RS.50.00 LAKH, T HE TRIBUNAL DISMISSED THE APPEAL OF REVENUE BY VIRTUE OF CBDT CIRCULAR NO.17/2019 DATED 08 - 08 - 2019 REV ISING UPWARD THE MONETARY LIMIT TO RS.50.00 LAKH FOR FILING OF APPEAL S 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 DI SMISSED BECAUSE THE ADDITION IN TH IS CASE W AS MADE ON THE BASIS OF INFORMATION RECEIVED FROM TH E SALES TAX DEPARTMENT ABOUT THE ASSESSEE INDULGING IN HAWALA TRANSACTIONS AND HENCE COVERED IN THE EXCEPTION CLAUSE OF THE CIRCULAR AS REFERRED TO ABOVE , M.A. NO. 20 / PUN/20 2 1 M/S. OM SAI RAM STEEL & ALLOYS PVT. LTD. 3 WE FIND THAT SUCH A CONTENTION HAS NOT BEEN COUNTENANCED BY THE PUNE BENCHES OF THE TRIBUNAL IN SEVER AL CASES INCLUDING ITO VS . M/S PARAM MARKETING ( ITA NO.18 7 2/PUN/2019 DT.30 - 01 - 2020 ) AND ITO VS . YUSUF GULMMOHMMED PATEL ( ITA NO.18 5 2/PUN/2019 DT.30 - 01 - 2020 ). NOT ONLY THAT, EVEN THE MISCELLANEOUS APPLICATION FILED U/S 254(2) ON THIS ISSUE HA S ALSO BEEN DI SMISSED 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 FILE D BY THE REVENUE. 4. IT IS HOWEVER CLARIFIED THAT THE DEPARTMENT WILL BE AT LIBERTY TO PRAY FOR THE RESTORATION OF THE APPEAL IF IT FINDS THE CASE COVERED UNDER ANY OTHER EXCEPTION CLAUSE OF THE CIRCULAR. 5. IN THE RESULT, THE MISCELLANEOUS APPLICA TION IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH JUNE , 2021. SD/ - SD/ - ( PARTHA SARATHI CHAUDHURY ) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT PUNE ; DATED : 18 TH JUNE, 2021 SATISH M.A. NO. 20 / PUN/20 2 1 M/S. OM SAI RAM STEEL & ALLOYS PVT. LTD. 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEAL S) - 1, AURANGABAD 4. THE PR. CIT - 1, AURANGABAD 5. , , B / DR B , ITAT, PUNE; 6. / GUARD FILE . // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETAR Y , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 18 - 06 - 2021 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 18 - 06 - 2021 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. *