Assistant Commissioner of Income-tax, Circle - 2, Nashik V. M/s. Mahalaxmi Electricals, Nashik

MA 73/PUN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7245 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 10-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE . , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / MA NO.73/PUN/2018 (ARISING OUT OF ITA NO.301/PUN/2016) / ASSESSMENT YEAR : 2009-10 ACIT, CIRCLE-2, NASHIK. ....... / APPELLANT / V/S. M/S. MAHALAXMI ELECTRICALS, PROP. SHRI PRAMOD B. PATIL, PLOT NO.W-25, MIDC, SATPUR, NASHIK-422007. PAN : AJYPP6915A / RESPONDENT REVENUE BY : SHRI RAJESH GAWALI ASSESSEE BY : NONE / DATE OF HEARING : 05.04.2019 / DATE OF PRONOUNCEMENT : 22.04.2019 / ORDER PER D. KARUNAKARA RAO, AM: THIS MISCELLANEOUS APPLICATION ARISES FROM THE REVENUES APPEAL IN ITA NO.301/PUN/2016 VIDE ORDER DATED 26.04.2018 FOR THE ASSESSMENT YEAR 2009-10. 2. THERE WAS NONE TO REPRESENT THE ASSESSEE. 3. THE LD. DR FOR THE REVENUE, THROUGH THIS MISCELLANEOUS APPLICATION, SUBMITTED THAT THIS IS AN APPEAL WHICH IS COVERED BY THE EXCEPTIONS PROVIDED IN ITEM (E) OF PARA 10 OF THE AMENDED BOARDS LETTER DATED 20.08.2018. AS PER THE SAID CIRCULAR (SUPRA), THE CASE WHICH INVOLVED THE USE OF MATERIAL/INFORMATION RECEIVED FROM CERTAIN AGENCY FOR MAKING ASSESSMENT ARE OUTSIDE THE SCOPE OF THE CIRCULAR. IN THE RESULT, SUCH APPEALS MUST NOT BE DISMISSED BY THE TRIBUNAL. IN THIS REGARD, LD. DR FOR THE REVENUE BROUGHT OUR ATTENTION TO THE SAID EXCEPTIONS AND 2 MA NO.73/PUN/2018 MENTIONED THAT THE SALES TAX DEPARTMENT OF MAHARASHTRA GOVERNMENT SUPPLIED THE INFORMATION, WHICH FORMED BASIS FOR MAKING ADDITIONS. THE LD. DR SUBMITTED THAT THE SALES TAX DEPARTMENT, MAHARASHTRA GOVERNMENT SHOULD BE CONSIDERED AT PAR WITH THE AGENCIES I.E. CBI, ED, DRI, SFIO AND DGGI MENTIONED IN THE CIRCULAR. THE LD. DR REQUESTED FOR RECTIFYING THE TRIBUNALS ORDER DATED 26.04.2018 (SUPRA) AND RECALLING THE SAME FOR REGULAR HEARING. 4. ON HEARING THE LD. DR, WE FIND THE LIST OF AGENCIES GIVEN IN THE CIRCULAR BELONGS TO CENTRAL GOVERNMENT AGENCIES AND THE SAME IS NOT COMPARABLE TO THE STATE GOVERNMENT AGENCIES LIKE SALES TAX DEPARTMENT. WE HAVE ALREADY TAKEN AN IDENTICAL VIEW WHILE DECIDING ANOTHER DECISION OF PUNE BENCH (SMC) OF THE TRIBUNAL IN THE CASE OF ITO VS. SHRI NANDKISHORE K. DILERAO VIDE ITA NO.1734/PUN/2018, ORDER DATED 11.02.2019. FOR THE SAKE OF COMPLETENESS, THE RELEVANT PARAS 6 AND 7 OF THE SAID DECISION OF THE TRIBUNAL (SUPRA) ARE EXTRACTED HEREUNDER :- 6. ON THE OTHER HAND, LD. AR FOR THE ASSESSEE READ OUT THE RELEVANT CLAUSE (E) OF THE CIRCULAR (SUPRA) AND SUBMITTED THAT THE INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT OF THE MAHARASHTRA GOVERNMENT DOES NOT FALL WITHIN THE SAID CLAUSE (E) OF THE SAID CBDT CIRCULAR (SUPRA). THE RESTRICTION IS PROVIDED ONLY IN RESPECT OF THE INFORMATION RECEIVED FROM THE AGENCIES I.E. CBI NOR ED NOR DRI NOR SFIO NOR DGGI. THEREFORE, THE RESTRICTION PROVIDED BY THE CBDT APPLIES TO THE PRESENT CASE AND, THEREFORE, THE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN VIEW OF THE SAID CIRCULAR OF CBDT (SUPRA). OTHERWISE, THERE IS NO DISPUTE ON THE FACT THAT THE TAX EFFECT ON THE ADDITION MADE ONLY RS.8,46,685/- AND THE TAX EFFECT THERE IS CERTAINLY MUCH LESS THAN THE LIMIT OF RS.20 LAKHS PRESCRIBED BY THE CIRCULAR OF CBDT (SUPRA). 7. IN THIS CASE, I FIND THAT THE CIRCULAR APPLIES TO THE PRESENT CASE WHERE SALES TAX INFORMATION IS INVOLVED. I AGREE WITH THE ARGUMENT OF LD. AR (PARA 6 ABOVE OF THIS ORDER). ON GOING THROUGH THE FACTS OF THE CASE AND THE ORDERS OF THE REVENUE, THE TOTAL TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS UNDISPUTEDLY LESS THAN RS.20 LAKHS. THE CBDT CIRCULAR DATED 20.08.2018 RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE PENDING APPEALS OF THE DEPARTMENT BEFORE THE TRIBUNAL TOO. THUS, IN VIEW OF THE CBDT CIRCULAR, I AM OF THE OPINION THAT THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT WITHOUT GOING INTO THE MERITS OF THE CASE. 3 MA NO.73/PUN/2018 5. WE FIND THAT THE AGENCIES SPECIFIED IN THE CIRCULAR RELATES TO THE CENTRAL GOVERNMENT ENFORCEMENT AGENCIES. SALES TAX DEPARTMENT OF MAHARASHTRA GOVERNMENT IS OUTSIDE THE SAID LIST. THEREFORE, THE TRIBUNAL RIGHTLY DISMISSED THE APPEAL OF THE REVENUE. REVENUE HAS NO CASE FOR RECTIFICATION OF THE ORDER OF THE TRIBUNAL. THEREFORE, PRESENT MISCELLANEOUS APPLICATION SEEKING RECTIFICATION OF OUR ORDER DOES NOT SURVIVE. ACCORDINGLY, MISCELLANEOUS APPLICATION FILED BY THE REVENUE STANDS DISMISSED. 6. IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 22 ND DAY OF APRIL, 2019. SD/- SD/- ( /VIKAS AWASTHY) ( . /D. KARUNAKARA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 22 ND APRIL, 2019. SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-2, NASHIK. 4. THE CIT-2, NASHIK. 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.