ITO 9(2)(1), MUMBAI V. BIPDEC PLAST P.LTD, MUMBAI

MA 549/MUM/2019

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9906 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 30-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Tax effect

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH MUMB AI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A. NO. 549/MUM/2019 IN ITA NO. 6699/MUM/2016 (AY 2010-11 ) ITO-9(2)(1) ROOM NO. 601A, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020. VS. M/S BIPDEC PLAST P. LTD., SHOP NO.13, NAVKAR DCOR MAHAVEER NAGAR, KANDIVALI WEST, MUMBAI- 400057. PAN: AAACB2214Q APPELLANT RESPONDE NT APPELLANT BY : SMT. JOTHILAKSHMI NAYAK (DR) RESPONDENT BY : SHRI HARSH KOTHARI (AR) DATE OF HEARING : 13.12.2019 DATE OF PRONOUNCEMEN T : 18.12.2019 ORDER UNDER SECTION 254(2)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. THIS MISCELLANEOUS APPLICATION (M.A.) IS FILED BY T HE REVENUE FOR RECTIFICATION OF ORDER DATED 18.03.2019 PASSED IN I TA NO. 6699/MUM/2016 ASSESSMENT YEAR 2010-11. THE LD. DEPA RTMENTAL REPRESENTATIVE (DR) FOR THE REVENUE SUBMITS THAT TH E APPEAL OF REVENUE WAS DISMISSED BY TRIBUNAL, ON THE BASIS OF CBDT CIR CULAR NO. 3/2018 DATED 11.07.2018 BY TAKING VIEW THAT THE TAX EFFECT INVOLVED IN THE APPEAL IS BELOW THE MONETARY LIMIT OF RS. 20,00,000/-. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) SUBMITS THAT THE ADDITION MADE IN THE ASSESSMENT ORDER WERE BASED ON THE EXTERNAL SOURCES AND THE AP PEAL OF REVENUE WAS COVERED BY EXCEPTION AS CONTAINED IN PARA-10(E) OF CBDT CIRCULAR NO.3/2018 DATED 11.07.2018. THE LD. DR FOR THE REVE NUE SUBMITS THAT THE M.A.NO. 549 MUM 2019-M/S BIPDEC PLAST P. LTD. 2 ORDER DATED 18.03.2019 MAY BE RECALLED AND APPEAL M AY BE DECIDED ON MERIT. 2. ON THE OTHER HAND, THE LD. AUTHORIZED REPRESENTATIV E (AR) OF THE ASSESSEE SUBMITS THAT EXTERNAL SOURCES ARE MENTIONED IN PARA -10(E) OF CIRCULAR NO.3/2018, WHICH CONSISTS OF CBI-ED, DRI AND DIRECT OR GENERAL OF GST INTELLIGENCE. THE DIT (I&CI) MUMBAI ARE NOT EXTERNA L AGENCY AS MENTIONED IN PARA-10(E) OF THE AFORESAID CIRCULAR. THE LD. AR OF THE ASSESSEE SUBMITS THAT ON SIMILAR GROUND, THE APPLIC ATION OF REVENUE WAS DISMISSED BY TRIBUNAL IN ACIT VS. M/S GIRIRAJ CIVIL DEVELOPERS PVT. LTD. IN ITA NO. 1183/MUM/2017 DATED 20.08.2019 AND IN IT O VS. AMARCHAND P. SHAH REPORTED VIDE [2019] 111 TAXMANN.COM 385 (M UM. TRIB.). 3. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE REPRE SENTATIVES OF THE PARTIES AND PERUSED THE ORDER DATED 18.03.2019 VIDE WHICH THE APPEAL OF REVENUE WAS DISMISSED AS THE TAX EFFECT IN DISPUTE IN THE APPEAL WAS STATED TO BE BELOW THE MONETARY LIMIT OF RS. 20,00,000/- S PECIFIED IN CBDT CIRCULAR DATED 11.07.2018 (SUPRA). 4. NOW THE REVENUE HAS RAISED THE PLEA THAT ADDITION I N THE APPEAL WERE BASED ON INFORMATION WITH REGARD TO CLIENT CODE MOD IFICATION (CCM) FROM AUTHENTIC EXTERNAL SOURCE I.E. BSE/NSE DATA RE CEIVED THROUGH DIT (C&CI). 5. WE HAVE NOTED THAT THE EXTERNAL SOURCES ARE DEFINED /PROVIDED IN PARA- 10(E) OF CBDT CIRCULAR DATED 11.07.2018(SUPRA) ITSE LF, WHICH CONSISTS OF M.A.NO. 549 MUM 2019-M/S BIPDEC PLAST P. LTD. 3 CBI-ED, DRI AND DIRECTOR GENERAL OF GST INTELLIGENC E. NO INFORMATION WAS RECEIVED FROM ANY OF SUCH EXTERNAL SOURCES. P ERUSAL OF ASSESSMENT ORDER REVEALS THAT INFORMATION REGARDING THE CCM WA S RECEIVED FROM DIT (I&CI), WHICH IS NOT EXTERNAL SOURCE. THE INFORMATI ON ON THE BASIS OF WHICH THE ASSESSMENT WAS REOPENED WAS REVENUES OWN SOURCES AND NOT THE EXTERNAL SOURCES DEFINED IN THE PARA-10(E) OF T HE AFORESAID CBDT CIRCULAR. THE CO-ORDINATE BENCH OF TRIBUNAL IN ITO VS. AMARCHAND P. SHAH (SUPRA) HELD THAT DIT (INVESTIGATION) IS AN IN TERNAL AGENCY/WING OF THE DEPARTMENT, WHICH WORKS UNDER AEGIS OF ITS CONT ROLLING AUTHORITY CBDT, CANNOT BE CONSIDERED AS EXTERNAL SOURCES AN D THEREFORE, INFORMATION RECEIVED BY ASSESSING OFFICER FROM DIT( I) IS NOT COVERED BY EXCEPTION 10(E) OF CBDT CIRCULAR NO.3/2018 DATED 11 .07.2018. CONSIDERING THE AFORESAID FACTUAL AND LEGAL DISCUSS ION, WE DO NOT FIND ANY MERIT IN THE MISCELLANEOUS APPLICATION OF REVENUE A ND THE SAME IS DISMISSED. 6. IN THE RESULT, M.A FILED BY REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.12.2019. SD/- SD/- S. RIFAUR RAHMAN PAWAN SINGH ACCOUNTANT MEMBER JUD ICIAL MEMBER MUMBAI, DATE: 18.12.2019 SK COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT M.A.NO. 549 MUM 2019-M/S BIPDEC PLAST P. LTD. 4 5. DR B BENCH, ITAT, MUMBAI 6. GUARD FILE B Y ORDER, DY./ASST. REGISTRAR ITAT, MUMBAI