Joint Commissioner Of Income Tax, Range-1, Mysore V. Balaji Auto Enterprises Mysore Private Limited, Mysuru

MA 52/BANG/2023

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The case revolves around a miscellaneous petition filed by the Deputy Commissioner of Income-tax, Central Circle, Mysuru, against Balaji Auto Enterprises Mysore Pvt. Ltd. The petition sought rectification of the Tribunal's earlier order which had favored the assessee, allowing their appeal against a penalty under section 271DA for receiving cash over Rs. 2 lakhs from multiple parties. The revenue argued that the Tribunal had misinterpreted the provisions of section 269ST of the Income-tax Act. However, the Tribunal, after reviewing the submissions and the relevant legal provisions, dismissed the petition, affirming that the assessee had provided a reasonable cause for the transactions, and thus, no rectification was necessary.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125267 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 15-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 19-02-2023
• Other Referred Cases: CIT v. Reliance Telecom Ltd. [2021] 133 taxmann.com 41 (SC)
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER MP No.52/Bang/2023 [in ITA No. 547/Bang/2022] Assessment year : 2018-19 The Dy. Commissioner of Income-tax, Central Circle, Mysuru. Vs. Balaji Auto Enterprises Mysore Pvt. Ltd., No.19, 1st Main, Swimming Pool Road, Saraswathipuram, Mysuru-570 009. PAN : AADCB 9614M APPLICANT RESPONDENT Applicant by : Smt. Priyadarshini Baseganni, Addl.CIT(DR)(ITAT), Bengaluru. Respondent by : Shri Ravi Shankar, Advocate Date of hearing : 16.06.2023 Date of Pronouncement : 20.06.2023 O R D E R Per Laxmi Prasad Sahu, Accountant Member This miscellaneous petition is filed by the revenue for rectification of the order dated 20.10.2022 in ITA No.547/Bang/2022 AY 2017-18. 2. The ld. DR submitted that the provisions of section 269ST(a) and (c) of the Act has not been properly appreciated by the Tribunal and the appeal of the assessee was wrongly allowed by observing that MP No.52/Bang/2023 Page 2 of 3 the assessee has received cash more than Rs.2 lakhs from four different persons which is clear from Form 61A. The ld. DR further submitted that the Tribunal has not decided the appeal in the light of provisions of section 269ST(c) and wrongly considered section 269ST(a). Therefore, the ld. DR submitted that the order passed by the Tribunal may be rectified u/s 254(2) of the Act. 3. The ld. AR submitted that the assessee has not violated any of the provisions of section 269ST. The assessee received cash on different occasions from four different parties and complete details were submitted. The cash received by the assessee was for purchase of car and accessories, insurance and registration of vehicle. Insurance is paid for vehicle insurance which is a third party payment and registration charges are for registration of the vehicle and these are facilitated by the vendor of the vehicle. The reasonable cause was explained during the course of hearing of the appeal. He further submitted that the Tribunal has no power to recall its order as per the Hon’ble Supreme Court judgment in the case of CIT v. Reliance Telecom Ltd. [2021] 133 taxmann.com 41 (SC). 4. After hearing both the sides, perusing the entire material on record and the orders of the lower authorities, we note that the assessee has received cash of more than Rs.2 lakhs from 4 different parties on different occasions which is dealt with by the Tribunal in para 7 of the order. There was reasonable cause explained by the assessee and therefore it was held that assessee is not liable for penalty u/s. 271DA MP No.52/Bang/2023 Page 3 of 3 of the Act. We find substance in the submissions of the ld. AR noted supra. In view of this, there is no apparent mistake in the order of the Tribunal. Hence, the miscellaneous petition by the revenue is dismissed. Pronounced in the open court on this 20 th day of June, 2023. Sd/- Sd/- ( BEENA PILLAI ) (LAXMI PRASAD SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated, the 20 th June, 2023. /Desai S Murthy / Copy to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore.