Income-tax Officer, Ward - 2(3), Aurangabad V. Abhishek Ramanand Modani, Aurangabad

MA 272/PUN/2022

AI Insights

The case involves the Income Tax Officer, Ward \\u2013 2 (3), Aurangabad as the applicant and Shri Abhishek Ramanand Modani as the respondent. The Revenue filed a miscellaneous application under section 254(2) of the Income Tax Act, 1961, seeking to rectify the tribunal's order dated 01.08.2018, which had dismissed its main appeal due to the tax effect being lower than the prescribed Rs.20 lakhs as per CBDT's circular no.3/2018. The Revenue argued that the case involved bogus long-term capital gains claimed to be exempt under section 10(38) of the Act, citing an exception in the CBDT's circular that pertains to cases involving information from external sources. However, the tribunal found that this exception did not apply, leading to the dismissal of the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137052 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 5 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 10-01-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Capital Gains

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER M.A.No.272/PUN./2022 Arising out of I.T.A.No.3052/PUN./2017 - Assessment Year 2014-2015 The Income Tax Officer, Ward – 2 (3), Aurangabad. vs. Shri Abhishek Ramanand Modani, 92, “Saphalya”, Venkatesh Nagar, Opp. SFS School, Jalna Road, Aurangabad. PAN ARVPM0328D (Applicant) (Respondent) For Assessee : Smt. Deepa Khare For Revenue : Shri M.G. Jasnani Date of Hearing : 16.06.2023 Date of Pronouncement : 20.06.2023 ORDER PER SATBEER SINGH GODARA, J.M. : This Revenue’s miscellaneous application M.A.No.272/PUN./2022 filed u/s.254(2) of the Income Tax Act, 1961 (in short "the Act") seeks to recall/rectify the tribunal’s order dated 01.08.2018 dismissing it’s main appeal ITA.No.3052/PUN./2017 as involving lower than the prescribed tax effect of Rs.20 lakhs as per the CBDT’s circular no.3/2018 dated 11.07.2018. 2. Mr. Jasnani vehemently argued during the course of hearing that our impugned order suffers from an apparent 2 M.A.No.272/PUN./2022 mistake as the issue in it’s main appeal is that of bogus long term capital gains claim to be exempt u/sec.10(38) of the Act. He quotes exception no.5 in the CBDT’s circular no.3/2018 dated 20.08.2018 to this effect. 3. Learned counsel on the other hand places on record CBDT’s circular dated 20.08.2018 itself and states that the above stated exception to the tax effect claim at the Revenue’s behest applies only in an instance of the “information received from external sources” than the DIT (Inv.) who has submitted his investigation report. That being the case, we see no apparent mistake in our impugned order so as to rectify u/sec.254(2) of the Act. Rejected accordingly. 4. This miscellaneous application of the Revenue is dismissed in above terms. Order pronounced in the open Court on 20.06.2023. Sd/- Sd/- [GD PADMAHSHALI] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 20 th June, 2023 VBP/- Copy to 1. The applicant 2. The respondent 3. The CIT(A)-2, Aayakar Bhavan, Cantonment, Aurangabad. 4. The Pr. CIT-2, Aurangabad 5. D.R. ITAT, Pune “A” Bench, Pune 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.