ACIT NON CORP CIRCLE 1, COIMBATORE V. SHRI. JOSE C ABRAHAM, COIMBATORE

MA 40/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2629 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 21-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S NATARAJA
• Assessee Lawyers: NITHYA SANKARAN CA
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI ... , ! ' # $ , & $' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER (( / M.P. NOS.40 & 41/CHNY/2019 (IN I.T.A. NOS.1095 & 1096/CHNY/2018) ) *) / ASSESSMENT YEARS : 2009-10 & 2010-11 THE DEPUTY COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE -1, 63, RACE COURSE ROAD, COIMBATORE 641 018. V. SHRI JOSE C. ABRAHAM, C-108, LAVENDER BLOCK, RAHEJA ENCLAVE, RACE COURSE, COIMBATORE 641 018. PAN : ADEPA 7821 J (,-) /PETITIONER) (,.-// RESPONDENT) ,-) 1 2 /PETITIONER BY : SHRI S. NATARAJA, JCIT ,.-/ 1 2 / RESPONDENT BY : SHRI NITHYA SANKARAN, CA 3 1 4& / DATE OF HEARING : 07.06.2019 56* 1 4& / DATE OF PRONOUNCEMENT : 07.06.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THE REVENUE HAS FILED THE PRESENT MISCELLANEOUS P ETITIONS ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER O F THIS TRIBUNAL DATED 23.10.2018. 2 M.P. NOS.40 & 41/CHNY/19 2. SHRI S. NATARAJA, THE LD. DEPARTMENTAL REPRESENT ATIVE, SUBMITTED THAT THIS TRIBUNAL DISMISSED THE APPEALS OF THE REVENUE ON THE GROUND THAT THE TAX EFFECT IN BOTH THE APPEA LS IS BELOW THE MONETARY LEVEL PRESCRIBED BY THE CBDT FOR FILING AP PEAL BEFORE THIS TRIBUNAL. REFERRING TO THE CIRCULAR ISSUED BY THE CBDT DATED 11.12.2018, THE LD. D.R. SUBMITTED THAT WHERE THE A DDITION WAS BASED ON THE INFORMATION RECEIVED FROM EXTERNAL SOU RCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI / ED / DRI / SFIO / DIRECTOR GENERAL OF GST INTELLIGENCE (DGGI), THE CI RCULAR IS NOT APPLICABLE. IN THIS CASE, ACCORDING TO THE LD. D.R ., THE INFORMATION WAS RECEIVED FROM DIRECTORATE OF INCOME TAX (I&CI), MUMBAI, THEREFORE, THE CIRCULAR IS NOT APPLICABLE AT ALL. HENCE, ACCORDING TO THE LD. D.R., THE APPEALS ARE TO BE DISPOSED OF ON MERIT. 3. ON THE CONTRARY, SHRI NITHYA SANKARAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE CIRCULAR ISSUED ON 11.12.2018 CLARIFIES THE EARLIER CIRCULAR ISSUED IN CIRCULAR NO.3 OF 2018, EXCLUDED THE APPLICATION OF THE SAID CIRCULAR IN RESPECT OF THE CASES WHERE THE INFORMATION WAS RECEIVED FROM EXTER NAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI / ED / DRI / SFIO / DIRECTORATE GENERAL OF GST INTELLIGENCE (DGG I). IN THIS CASE, ADMITTEDLY ACCORDING TO THE LD. REPRESENTATIV E, THE INFORMATION 3 M.P. NOS.40 & 41/CHNY/19 WAS RECEIVED FROM THE INTERNAL SOURCE, NAMELY, DIRE CTORATE OF INCOME TAX (I&CI). THE DIRECTORATE OF INCOME TAX ( I&CI) IS A PART OF INCOME-TAX DEPARTMENT. THEREFORE, ACCORDING TO THE LD. REPRESENTATIVE, THE CIRCULAR ISSUED BY THE CBDT CLA RIFYING ITS EARLIER CIRCULAR IS NOT APPLICABLE AT ALL. 4. HAVING HEARD THE LD. D.R. AND THE LD. REPRESENTA TIVE FOR THE ASSESSEE, THIS TRIBUNAL HAS GONE THROUGH THE CLARIF ICATION ISSUED BY THE CBDT ON 11.12.2018 WITH REGARD TO CIRCULAR NO.3 OF 2018. IN CLAUSE (E), THE CBDT CLARIFIES AS FOLLOWS:- WHERE ADDITION IS BASED ON INFORMATION RECEIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI / ED / DRI / SFIO / DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI), T HE SAID CIRCULAR IS NOT APPLICABLE. 5. THE CBDT IS VERY CLEAR IN ITS MIND THAT IT EXCLU DED WHEREVER THE INFORMATION RECEIVED FROM EXTERNAL AGENCIES. A S RIGHTLY SUBMITTED BY THE LD. REPRESENTATIVE FOR THE ASSESSE E, DIRECTORATE OF INCOME TAX (I&CI) IS A PART OF INCOME-TAX DEPARTMEN T. THEREFORE, THE INFORMATION SAID TO BE RECEIVED FROM DIRECTORAT E OF INCOME TAX (I&CI) IS INTERNAL INFORMATION AND NOT INFORMATION FROM EXTERNAL SOURCES. HENCE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CLARIFICATION OF THE CBDT DATED 11.12.2018 IS NOT A PPLICABLE TO THE 4 M.P. NOS.40 & 41/CHNY/19 PRESENT CASE. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY MERIT IN BOTH THE MISCELLANEOUS PETITIONS FILED BY THE REVENUE. 6. WITH THE ABOVE OBSERVATION, BOTH THE MISCELLANEO US PETITIONS FILED BY THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE COURT ON 7 TH JUNE, 2019 AT CHENNAI. SD/- SD/- (! ' # $ ) ( ... ) (INTURI RAMA RAO) (N.R.S. GANES AN) & / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 7 TH JUNE, 2019. KRI. 1 ,49( :(*4 /COPY TO: 1. ,-) / PETITIONER 2. ,.-/ /RESPONDENT 3. 3 ;4 () /CIT(A) 4. 3 ;4 /CIT 5. (< ,4 /DR 6. =) > /GF.