Income-tax Officer, Ward - 2 (2), Nashik V. M/s. Pitamber Rolling Mills Pvt.Ltd, Nashik

MA 371/PUN/2022

AI Insights

The case involves the Income Tax Officer (ITO), Ward-2(2), Nashik as the applicant and M/s. Pitambar Rolling Mills Pvt. Ltd. as the respondent. The Revenue filed a Miscellaneous application seeking to recall the Tribunal's order that dismissed their appeal due to the low tax effect. The original appeal was based on allegations that the assessee was involved in hawala transactions, as per information from the Sales Tax Department, Government of Maharashtra. The Tribunal had dismissed the appeal citing the monetary limit for filing appeals set by the CBDT. The Revenue argued that the case should be reconsidered under an exception for cases involving serious tax evasion. However, the Tribunal, referencing previous similar cases, dismissed the application, affirming that the monetary limit applies regardless of the nature of the allegations unless explicitly stated otherwise in the CBDT Circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137922 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-04-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 23-11-2022
• 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 “B”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURI, JUDICIAL MEMBER Miscellaneous Application No.371/PUN/2022 (arising out of ITA No.456/PUN/2019) Assessment Year : 2010-11 ITO, Ward-2(2), Nashik Vs. M/s. Pitambar Rolling Mills Pvt. Ltd., Chintamani, Kalyani Nagar, Gangapur Road, Nashik – 422 013 PAN : ABDPP3848D Assessee by : None Revenue by Ms. Deepali Kalbandhe Date of Hearing : 21-04-2023 Date of Pronouncement : 26-04-2023 ORDER PER R.S.SYAL, VP : This Miscellaneous application has been moved by the Revenue requesting to recall the orders of the Tribunal passed on 11-05-2022. 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 was dismissed by the Tribunal was less than Rs.50.00 lakh, submitted that the addition in this appeal was based on the information received by the Assessing Officer from the Sales Tax Department, Govt. of Maharashtra that the assessee was one of the beneficiaries indulging in the Hawala transactions. It was ergo prayed that the appeal fall under exception prescribed in clause (e) M.A.No.371/PUN/2022 M/s. Pitamber Rolling Mills Pvt. Ltd., 2 of para 10 of the CBDT Circular no. 03/2018 date 11-07-2018 read with its amendment dated 20-08-2018 and hence, the Tribunal order11-05-2022 needs to be recalled for adjudication of the appeals on merit. 2. There is no appearance from the side of assessee despite notice. We, are, therefore, proceeding to dispose of the appeal ex parte qua the assessee. Having found that the tax effect in the instant appeal referred to by the Revenue is 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 appeal should not have been dismissed because the addition in the above case was made on the basis of information received from the Sales Tax Department, Govt. of Maharashtra about the assessee 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.371/PUN/2022 M/s. Pitamber Rolling Mills Pvt. Ltd., 3 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 application filed by the Revenue. 4. In the result, the Miscellaneous application is 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 M.A.No.371/PUN/2022 M/s. Pitamber Rolling Mills Pvt. Ltd., 4 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 “B”/ DR ‘B Benches’, ITAT, Pune; 5. गाड फाईल / Guard file. // True copy // आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune 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. *