ACIT 17 (3), MUMBAI V. VIJAY N. MEHTA, MUMBAI

MA 230/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5574 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 15-09-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Tax effect
• Section: 13

Judgement Text

MA NO 230/MUM/2020 IN ITA NO. 5049/MUM/2018 ASSESSMENT YEAR: 2010 - 11 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI 'D' BENCH, MUMBAI [CORAM: JUSTICE P.P. BHATT (PRESIDENT), AND PRAMOD KUMAR (VICE PRESIDENT)] MA NO 230/MUM/2020 IN ITA NO. 5049/MUM/2018 ASSESSMENT YEAR: 2010 - 11 ASSISTANT COMMISSIONER OF INCOME TAX - 17(3) .APPLICANT MUMBAI. VS. SHRI VIJAY N MEHTA RESPONDENT R NO. 13, 338, N.N STREET, MASJID BUNDER MUMBAI 400009. [PAN: AADPM8512G] APPEARANCES BY SUSHIL DESHPANDE FOR THE APPLICANT VIJAY KUMAR G. FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING: : JULY 13 , 2021 DATE OF PRONOUNCEMENT OF ORDER : SEPTEMBER 0 2 , 2021 ORDER PER BENCH: 1. BY THIS MISCELLANEOUS APPLICATION, THE APPLICANT REVENUE SEEKS TO RECALL OUR ORDER PASSED IN ITA NO. 5049/MUM/2018, DATED 20.08.2019, WHEREIN THE REVENUES APPEAL WAS SUMMARILY DISMISSED ON ACCOUNT OF LOW TAX EFFECT. IT IS THE CLAIM OF THE REVENUE THAT THO UGH THE TAX EFFECT INVOLVED IN THE APPEAL IN QUESTION WAS ADMITTEDLY BELOW THE THRESHOLD MONETARY LIMIT OF RS. 50 LAC SPECIFIED IN THE CBDT CIRCULAR NO. 17/2019, DATED 08.08.2019, HOWEVER, THE SAME BEING COVERED BY THE EXCEPTION CARVED OUT IN PARA 10(E) OF THE CBDT CIRCULAR NO. 3/2018, DATED 11.07.2018 WAS THUS MAINTAINABLE 2. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED THE FACTS OF THE CASE IN LIGHT OF THE EXTANT APPLICABLE LEGAL POSITION. MA NO 230/MUM/2020 IN ITA NO. 5049/MUM/2018 ASSESSMENT YEAR: 2010 - 11 PAGE 2 OF 3 3. BEFORE US, IT IS THE CLAIM OF THE REVENUE THAT AS THE CASE OF THE ASSESSEE WAS REOPENED ON THE BASIS OF INFORMATION THAT WAS RECEIVED BY THE A.O FROM THE INVESTIGATION WING OF THE INCOME - TAX DEPARTMENT, WHICH IN TURN HAD RECEIVED THE SAID INFORMATION FROM THE SALES TAX AUTHORITIES I.E AN EXTERNAL LAW ENFORCEMENT AGENCY, THEREFORE, THE APPEAL IN QUESTION FELL WITHIN THE REALM OF THE EXCEPTION CARVED OUT IN PARA 10(E) OF THE CBDT CIRCULAR NO. 03/2018, DATED 11.07.2018 (AS AMENDED ON 20.08.2018). 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES FOR BOTH THE PARTIES, AND FIND, THAT WHILE DISPOSING OFF THE CAPTIONED APPEAL VIDE AN ORDER DATED 20.08.2019 LIBERTY WAS GRANTED TO THE REVENUE TO SEEK RECALLING OF THE ORDER AND REINSTITUTION OF ITS APPEAL FOR ADJUDICATION ON M ERITS, IF, IN CASE IT WAS SUBSEQUENTLY FOUND THAT THE APPEAL WAS COVERED BY AN EXCEPTION PROVIDED IN PARA 10 OF THE CBDT CIRCULAR NO. 3/2018, DATED 11.07.2018. 5. AS IS DISCERNIBLE FROM THE ASSESSMENT ORDER, WE FIND THAT THE CASE OF THE ASSESSEE WAS REOPENED, FOR THE REASON, THAT INFORMATION WAS RECEIVED BY THE A.O FROM THE OFFICE OF THE DGIT(INV), MUMBAI, WHICH IN TURN HAD RECEIVED INFORMATION FROM THE SALES TAX AUTHORITIES THAT THE ASSESSEE AS A BENEFICIARY HAD OBTAINED BOGUS PURCHASE BILLS FRO M CERTAIN ACCOMMODATION ENTRY PROVIDERS. IN OUR CONSIDERED VIEW, AS THE VERY BASIS FOR REOPENING THE CASE OF THE ASSESSEE, AND THE CONSEQUENTIAL ADDITION THEREIN MADE WAS THE INFORMATION THAT WAS RECEIVED FROM THE SALES TAX AUTHORITIES I.E AN EXTERNAL LAW ENFORCEMENT AGENCY, THEREFORE, THE CLAIM OF THE REVENUE THAT THE APPEAL IN QUESTION WAS SAVED BY THE EXCEPTION CARVED OUT IN PARA 10(E) OF THE CBDT CIRCULAR NO. 3/2018, DATED 11.07.2018 (AS AMENDED ON 20.08.2018), MERIT ACCEPTANCE. BACKED BY THE AFORESAID FACTS, WE CONCUR WITH THE CLAIM OF THE REVENUE THAT THE PRESENT APPEAL IS COVERED BY THE EXCEPTION CARVED OUT IN PARA 10(E) OF THE CBDT CIRCULAR NO.3/2018, DATED 11.07.2018 (AS AMENDED ON 20.08.2018). ACCORDINGLY, WE HEREIN DEEM IT FIT AND PROPER TO ALLOW THE PRESENT MISCELLANEOUS APPLICATION FILED BY THE REVENUE. 6. RESULTANTLY, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS ALLOWED, AND OUR ORDER PASSED IN ITA NO. 5049/MUM/2019, DATED 20.08.2019 IS RECALLED. THE REGISTRY IS DIRECTED TO FIX THE H EARING OF THE APPEAL IN THE LAST WEEK OF SEPTEMBER 2021. NOTICES BE ISSUED TO BOTH THE PARTIES INTIMATING THE DATE OF FIXATION OF THE APPEAL. ORDER PRONOU NCED IN THE OPEN COURT ON 0 2 . 0 9 .2021 S D / - S D / - JUSTICE P.P. BHATT PRAMOD KUMAR (PRESIDENT) (VICE PRESIDENT) MUMBAI, DATED THE 0 2 N D SEPTEMBER , 2021 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE MA NO 230/MUM/2020 IN ITA NO. 5049/MUM/2018 ASSESSMENT YEAR: 2010 - 11 PAGE 3 OF 3 BY ORDER TRUE COPY ASSISTANT REGISTRAR /SR. PS INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI