Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, MUMBAI BENCH “SMC” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI SANDEEP SINGH KARHAIL
PER BENCH These appeals by the These appeals by the Revenue and cross-objection by the objection by the assessee(s) are directed against separate orders passed by the are directed against separate orders passed by the are directed against separate orders passed by the Commissioner of Income Commissioner of Income-tax (Appeals)-42, Mumbai [in short 42, Mumbai [in short ‘the Ld. CIT(A)’] for different assessment years. ] for different assessment years.
M/s Elphinstone Paper Box M/s Elphinstone Paper Box 4 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
2. In the grounds, In the grounds, Revenue has agitated deleting of additions, deleting of additions, which were made by the which were made by the Assessing Officer alleging the purchases alleging the purchases made from one of the party namely made from one of the party namely “M/s Bigwin Paper Distributor Paper Distributor Private Limited” as bogus. as bogus.
3. In the cross-objection, the assessee has raised one of the issue objection, the assessee has raised one of the issue objection, the assessee has raised one of the issue of appeals being covered by the tax effects Circular issued by the of appeals being covered by the tax effects Circular issued by the of appeals being covered by the tax effects Circular issued by the Central Board of Direct Taxes(CBDT), New Delhi. Central Board of Direct Taxes(CBDT), New Delhi.
Before us, the Ld. Ld. DR on the issue of appeals covered by tax DR on the issue of appeals covered by tax effects Circular, submitted that in these cases information was , submitted that in these cases information was , submitted that in these cases information was received from the Sales Tax Authorities Sales Tax Authorities regarding bogus purchases regarding bogus purchases and therefore appeals of the assessee falls under exception clause of and therefore appeals of the assessee falls under exception clause of and therefore appeals of the assessee falls under exception clause of the circular, according to which wherever information has been the circular, according to which wherever information has been the circular, according to which wherever information has been received from external sources, from external sources, those appeals shall not be covered those appeals shall not be covered by the tax effects circular. by the tax effects circular.
M/s Elphinstone Paper Box M/s Elphinstone Paper Box 5 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
In the rejoinder, the In the rejoinder, the Ld. counsel of assessee submitted that of assessee submitted that sales tax information was received in the case of sales tax information was received in the case of sales tax information was received in the case of “Bigwin Paper Distributor Private Limited Private Limited” and thereafter in that case survey ter in that case survey proceeding was conducted, wherein it was found that said party has proceeding was conducted, wherein it was found that said party has proceeding was conducted, wherein it was found that said party has issued further bills in the case of the assessee issued further bills in the case of the assessees before us before us in cross- objection. According to the . According to the Ld. counsel, these facts are amply clear , these facts are amply clear from the body of the assessment order, and therefore exception from the body of the assessment order, and therefore exception from the body of the assessment order, and therefore exception clause does not apply to these appeals and same are covered by the clause does not apply to these appeals and same are covered by the clause does not apply to these appeals and same are covered by the tax effects circular.
We have heard submission of the both parties on the issue in We have heard submission of the both parties on the issue in We have heard submission of the both parties on the issue in dispute. The tax effect in these appea The tax effect in these appeals is reproduced in the chart ls is reproduced in the chart below:
S. No. effect Tax effect 1. 445/M/2021 445/M/2021 36,875/- 2. 444/M/2021 444/M/2021 69,012/- M/s Elphinstone Paper Box M/s Elphinstone Paper Box 6 Manufacturing Co ITA Nos. 445/M/2021 & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
3. 443/M/2021 443/M/2021 1,10,375/- 1,10,375/
4. 440/M/2021 440/M/2021 1,13,471/- 1,13,471/
5. 441/M/2021 441/M/2021 32,068/-
6. 442/M/2021 442/M/2021 1,17,596/- 1,17,596/ 6.1 We find that tax effect in these appeals is not We find that tax effect in these appeals is not exceeding the We find that tax effect in these appeals is not monetary limit, which has been revised by the CBDT which has been revised by the CBDT which has been revised by the CBDT vide circular dated 08/08/2019 for the purpose of the filing of the appeal by the dated 08/08/2019 for the purpose of the filing of the appeal by the dated 08/08/2019 for the purpose of the filing of the appeal by the Department before the Department before the Income-Tax Appellate Tribunal from Tribunal from ₹ 20.00 lakhs to ₹ 50.00 lakhs. For ready reference, 50.00 lakhs. For ready reference, the relevant part of the the relevant part of the said circular is reproduced as under: said circular is reproduced as under:
“Reference is invited to the Circular No.3 Reference is invited to the Circular No.3 of2018 dated 11.07.2018 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its Circular) of Central Board of Direct Taxes (the Board) and its Circular) of Central Board of Direct Taxes (the Board) and its amendment dated amendment dated 20 th August. 2018 vide which monetary limits for fi vide which monetary limits for fi ling of income tax appeals by the Department before Income Tax ling of income tax appeals by the Department before Income Tax ling of income tax appeals by the Department before Income Tax Appellate Tribunal. High Courts and Appellate Tribunal. High Courts and SLPs/appeals hefore hefore Supreme Court have been specified. Representation has also been received that Court have been specified. Representation has also been received that Court have been specified. Representation has also been received that an an~omaly in the said in the said circular at para 5 may be removed. circular at para 5 may be removed.
2. As a step towards further management of litigation. it has been 2. As a step towards further management of litigation. it has been 2. As a step towards further management of litigation. it has been decided by the Board decided by the Board that monetary limits for filing of appeals in that monetary limits for filing of appeals in M/s Elphinstone Paper Box M/s Elphinstone Paper Box 7 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
income-tax cases be enhanced further through tax cases be enhanced further through amendment in Para 3 amendment in Para 3 of the Circular menti of the Circular mentioned above and accordingly, the table for oned above and accordingly, the table for monetary limits specified in Para 3 ofthe Circular shall read as follows: monetary limits specified in Para 3 ofthe Circular shall read as follows: monetary limits specified in Para 3 ofthe Circular shall read as follows: S. No. Appeals/SLPs in Income-tax matters Appeals/SLPs in Income Monetary Limit Monetary Limit (₹) ₹) 1. Before Appellate Tribunal Before Appellate Tribunal 50,00,000/- 2. Before High Court Before High Court 1,00,00,000/- 3. Before Supreme Court Before Supreme Court 2,00,00,000/- 6.2 Thus prima facie, the appeals of the Department are not prima facie, the appeals of the Department are not prima facie, the appeals of the Department are not maintainable in view of monetary tax effect being less than maintainable in view of monetary tax effect being less than maintainable in view of monetary tax effect being less than ₹50 lakh. The Ld. DR however, submitted that the case falls under exception The Ld. DR however, submitted that the case falls under exception The Ld. DR however, submitted that the case falls under exception clause communicated by the CBDT. He referred clause communicated by the CBDT. He referred to CBDT directive dated 20.08.2018 by which exceptions have been carved out to dated 20.08.2018 by which exceptions have been carved out to dated 20.08.2018 by which exceptions have been carved out to Circular No. 03 of 2018 dated 11 Circular No. 03 of 2018 dated 11th July 2018 relating to July 2018 relating to withdrawal/non-filing appeal by the Department in low tax effect filing appeal by the Department in low tax effect filing appeal by the Department in low tax effect appeals. The CBDT has specified several instances for filing appeal appeals. The CBDT has specified several instances for filing appeal appeals. The CBDT has specified several instances for filing appeal despite their low tax effect. The contents of the said letter are tax effect. The contents of the said letter are tax effect. The contents of the said letter are reproduced as under: reproduced as under:
“All “All “All the the the Principal Principal Principal Chief Chief Chief Commissioners Commissioners Commissioners of of of Inc Income Inc Tax Subject: Amendment to para 10 of the Circular No. 3 of 2018 Subject: Amendment to para 10 of the Circular No. 3 of 2018 dated 11.07.2018-reg: reg:
M/s Elphinstone Paper Box M/s Elphinstone Paper Box 8 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
Madam/Sir, Kindly refer to the above. Kindly refer to the above.
The monetary limits for filing of appeals by the Department before Income Tax 2. The monetary limits for filing of appeals by the Department before Income Tax 2. The monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/ appeals before Supreme Court have been Appellate Tribunal, High Courts and SLPs/ appeals before Supreme Court have been Appellate Tribunal, High Courts and SLPs/ appeals before Supreme Court have been revised by Board’s Circular No. 3 of 2018 dated 11.07.2018. revised by Board’s Circular No. 3 of 2018 dated 11.07.2018.
Para 10 of the said Circular p 3. Para 10 of the said Circular provides that adverse judgments relating to the issues rovides that adverse judgments relating to the issues enumerated in the said para should be contested on merits notwithstanding that the enumerated in the said para should be contested on merits notwithstanding that the enumerated in the said para should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 thereof or there is tax effect entailed is less than the monetary limits specified in para 3 thereof or there is tax effect entailed is less than the monetary limits specified in para 3 thereof or there is no tax effect. Para 10 of no tax effect. Para 10 of the Circular No. 3 of 2018 dated 11.07.2018 is hereby the Circular No. 3 of 2018 dated 11.07.2018 is hereby amended as under: “10. Adverse judgments relating to the following issues should be contested on merits “10. Adverse judgments relating to the following issues should be contested on merits “10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified notwithstanding that the tax effect entailed is less than the monetary limits specified notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule is under (a) Where the Constitutional validity of the provisions of an Act or Rule is under (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board’s order, Notification, Instruction or Circular has been held to be (b) Where Board’s order, Notification, Instruction or Circular has been held to be (b) Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, venue Audit objection in the case has been accepted by the Department, venue Audit objection in the case has been accepted by the Department, or (d) Where addition relates to undisclosed foreign income/ undisclosed foreign assets (d) Where addition relates to undisclosed foreign income/ undisclosed foreign assets (d) Where addition relates to undisclosed foreign income/ undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account. (including financial assets)/ undisclosed foreign bank account. (e) Where addition is based on (e) Where addition is based on information received from external sources in information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by the Department and is pending in the (f) Cases where prosecution has been filed by the Department and is pending in the (f) Cases where prosecution has been filed by the Department and is pending in the Court. ”
4. The said modification shall come into effect from the date o f issue of this letter. The said modification shall come into effect from the date o f issue of this letter. The said modification shall come into effect from the date o f issue of this letter.
5. The same may be brought to the knowledge of all officers working in your region.
5. The same may be brought to the knowledge of all officers working in your region.
5. The same may be brought to the knowledge of all officers working in your region. 6.
6. This This issues issues with with the the approval approval of o f the the Hon’ble Hon’ble Finance Finance Minister.” Minister.
6.3 The exception 10(e) which has been referred by the Ld. DR The exception 10(e) which has been referred by the Ld. DR The exception 10(e) which has been referred by the Ld. DR related to the cases whether information from the external sources related to the cases whether information from the external sources related to the cases whether information from the external sources in in in the the the nature nature nature of of of law law law enforcement enforcement enforcement agencies agencies agencies such such such as as as M/s Elphinstone Paper Box M/s Elphinstone Paper Box 9 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
CBD/ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI) CBD/ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI) CBD/ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI) etc. Whereas the Investigation Wing of the Income Tax Department nvestigation Wing of the Income Tax Department nvestigation Wing of the Income Tax Department is part of the Income Tax Department and administratively as well is part of the Income Tax Department and administratively as well is part of the Income Tax Department and administratively as well as functionally it is a part of the Income Tax Department and not as functionally it is a part of the Income Tax Department and not as functionally it is a part of the Income Tax Department and not external law enforcement agency as specified in the aforesaid external law enforcement agency as specified in the aforesaid external law enforcement agency as specified in the aforesaid exception. The issue precipitated before us is whether the issue precipitated before us is whether the issue precipitated before us is whether the information in the case has been received from external law information in the case has been received from external law information in the case has been received from external law enforcement agency i.e. Sales Tax Department or from internal enforcement agency i.e. Sales Tax Department or from internal enforcement agency i.e. Sales Tax Department or from internal source i.e. Investigation Wing. source i.e. Investigation Wing. In the case before us, the Ld. In the case before us, the Ld. Assessing Officer has given Assessing Officer has given a details finding as how search/survey a details finding as how search/survey was conducted in the case of was conducted in the case of ‘M/s Bigwin Paper Distributor Private Bigwin Paper Distributor Private Limited’ and ‘M/s Arun Paper and Iron Traders M/s Arun Paper and Iron Traders’ by the Investigation by the Investigation Wing of the Income Tax Department based on the information from Wing of the Income Tax Department based on the information from Wing of the Income Tax Department based on the information from the Sales Tax Authorities that those were engaged in horities that those were engaged in accepting horities that those were engaged in bogus purchase bills. During the search/survey action on bogus purchase bills. During the search/survey action on bogus purchase bills. During the search/survey action on M/s Bigwin Paper Distributor Private Limited Bigwin Paper Distributor Private Limited and M/s Arun Paper and and M/s Arun Paper and M/s Elphinstone Paper Box M/s Elphinstone Paper Box 10 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
Iron Trader, it was found that Iron Trader, it was found that those were also engaged in the also engaged in the providing entries of bo providing entries of bogus sales to the assessee and thereafter the gus sales to the assessee and thereafter the Investigation Wing has sent the information to the Assessing Officer Investigation Wing has sent the information to the Assessing Officer Investigation Wing has sent the information to the Assessing Officer of the assessee that assessee was engaged in receipt of bogus of the assessee that assessee was engaged in receipt of bogus of the assessee that assessee was engaged in receipt of bogus purchase bills from M/s purchase bills from M/s Bigwin Paper Distributor Private Limited Bigwin Paper Distributor Private Limited. The relevant finding of the Assessing Officer is reproduced as under: inding of the Assessing Officer is reproduced as under: inding of the Assessing Officer is reproduced as under:
“4.1(v) Here it is pertained to mention that the statement of Shri Arun Agarwal 4.1(v) Here it is pertained to mention that the statement of Shri Arun Agarwal 4.1(v) Here it is pertained to mention that the statement of Shri Arun Agarwal Director of M/s. Bigwin paper Distributors was recorded U/s 131 of the I.T. Act Director of M/s. Bigwin paper Distributors was recorded U/s 131 of the I.T. Act Director of M/s. Bigwin paper Distributors was recorded U/s 131 of the I.T. Act by ACIT 31(1) Mumbai on 02/02/2015 and o by ACIT 31(1) Mumbai on 02/02/2015 and on 24/02/2015. The facts emerged n 24/02/2015. The facts emerged in the statements may be summarized as under: in the statements may be summarized as under: i. In both the entities i.e. Bigwin paper Distributors and M/s. Arun Paper In both the entities i.e. Bigwin paper Distributors and M/s. Arun Paper In both the entities i.e. Bigwin paper Distributors and M/s. Arun Paper and Iron Traders, he was managing person. Both the firm had carried and Iron Traders, he was managing person. Both the firm had carried and Iron Traders, he was managing person. Both the firm had carried out trading of paper during the out trading of paper during the financial year, relevant to the year financial year, relevant to the year under assessment. under assessment. ii. Both the concerns engaged in the business of trading of paper, wherein Both the concerns engaged in the business of trading of paper, wherein Both the concerns engaged in the business of trading of paper, wherein they had been procuring orders for supply of papers from its customers they had been procuring orders for supply of papers from its customers they had been procuring orders for supply of papers from its customers and pass on the same to the other traders/suppliers, availa and pass on the same to the other traders/suppliers, availa and pass on the same to the other traders/suppliers, available in market, who directly supply the goods to the customers of his two market, who directly supply the goods to the customers of his two market, who directly supply the goods to the customers of his two concerns i.e. M/s Bigwin paper Distributors Pvt. Ltd. and M/s. Arun concerns i.e. M/s Bigwin paper Distributors Pvt. Ltd. and M/s. Arun concerns i.e. M/s Bigwin paper Distributors Pvt. Ltd. and M/s. Arun Paper and Iron Traders. Paper and Iron Traders. iii. During the course of statement proceedings, he has stated that the Sales During the course of statement proceedings, he has stated that the Sales During the course of statement proceedings, he has stated that the Sales tax Department had tax Department had conducted an enquiry in Feb/March 2010 in the conducted an enquiry in Feb/March 2010 in the M/s Elphinstone Paper Box M/s Elphinstone Paper Box 11 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors. above named two concerns in connection to the purchases made from above named two concerns in connection to the purchases made from above named two concerns in connection to the purchases made from certain parties which are alleged involved in issuing sales bills without certain parties which are alleged involved in issuing sales bills without certain parties which are alleged involved in issuing sales bills without making actual delivery of the goods. In general terms which are being making actual delivery of the goods. In general terms which are being making actual delivery of the goods. In general terms which are being named as Bogus/ "Hawala" dealers. The names of such the parties are named as Bogus/ "Hawala" dealers. The names of such the parties are named as Bogus/ "Hawala" dealers. The names of such the parties are as under:
M/S V.S.K. Enterprises 1. M/S V.S.K. Enterprises
2. M/s Forum Traders 2. M/s Forum Traders
3. M/s Apple Industries 3. M/s Apple Industries
4. M/S Adinath Traders 4. M/S Adinath Traders
5. M/s Raviraj Impex Pvt. Ltd. 5. M/s Raviraj Impex Pvt. Ltd.
6. M/s Shubham Enterprises 6. M/s Shubham Enterprises
7. M/s Sameer Trading Cor 7. M/s Sameer Trading Corporation
M/S Hiten Enterprises 8. M/S Hiten Enterprises
M/s Neelofar Trade Pvt. Ltd. 9. M/s Neelofar Trade Pvt. Ltd. iv. It is also stated by him that in November 2013, survey u/s 133A of It is also stated by him that in November 2013, survey u/s 133A of It is also stated by him that in November 2013, survey u/s 133A of the I.T.Act was carried out by the Investigation Wing of the Income I.T.Act was carried out by the Investigation Wing of the Income I.T.Act was carried out by the Investigation Wing of the Income Tax Department, Mumbai in the case of both the entities Department, Mumbai in the case of both the entities, managed , managed by him. During the course of survey proceeding, his statement on During the course of survey proceeding, his statement on During the course of survey proceeding, his statement on oath u/s 131 of the I.T.Act was recorded on 6/12/2012 and on of the I.T.Act was recorded on 6/12/2012 and on 7/12/2012. In the 7/12/2012. In the statement, he had admitted that out of the statement, he had admitted that out of the purchases claimed to have purchases claimed to have made by his two concerns, there a made by his two concerns, there are certain parties, mentioned supra certain parties, mentioned supra were involved in were involved in "hawala" transactions.
M/s Elphinstone Paper Box M/s Elphinstone Paper Box 12 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors. v. Vide reply to question no. 22 of the statement, recorded on oath on reply to question no. 22 of the statement, recorded on oath on reply to question no. 22 of the statement, recorded on oath on 06/12/2012 as a proprietor of M/s Arun Paper and Iron Traders and 6/12/2012 as a proprietor of M/s Arun Paper and Iron Traders and 6/12/2012 as a proprietor of M/s Arun Paper and Iron Traders and also vide reply to question no. 22 of his stat also vide reply to question no. 22 of his statement, recorded as ement, recorded as managing person of M/s Bigwin paper Distributors Pvt. Ltd. managing person of M/s Bigwin paper Distributors Pvt. Ltd. managing person of M/s Bigwin paper Distributors Pvt. Ltd. he expressed his inability to furnish the vital evidences i.e. Purchase expressed his inability to furnish the vital evidences i.e. Purchase expressed his inability to furnish the vital evidences i.e. Purchase orders, Transport Receipts, weighment Slips, Octroi Receipts, Transport Receipts, weighment Slips, Octroi Receipts, Delivery Challans Delivery Challans and goods receipt register and goods receipt register in respect of the purchases, claimed to have purchases, claimed to have made from the alleged hawala traders. made from the alleged hawala traders. vi. He admitted that certain purchases, reflected in the books of account He admitted that certain purchases, reflected in the books of account He admitted that certain purchases, reflected in the books of account of his two concerns were affected through a broker/trader namely his two concerns were affected through a broker/trader namely his two concerns were affected through a broker/trader namely Hamukh Upadhayaya, (who is now no mor Hamukh Upadhayaya, (who is now no more alive). He further e alive). He further admitted that all the concerns/parties which are appearing in the list that all the concerns/parties which are appearing in the list that all the concerns/parties which are appearing in the list of Sales tax Department as suspicious Hawala dealers are related to the purchases Department as suspicious Hawala dealers are related to Department as suspicious Hawala dealers are related to affected through the Mr. Hamukh Upadhayaya. affected through the Mr. Hamukh Upadhayaya. vii. Vide answer to the question no 15 of Vide answer to the question no 15 of the statement recorded during the statement recorded during the course of survey proceeding on 7/12/2012 it is confirmed by him course of survey proceeding on 7/12/2012 it is confirmed by him course of survey proceeding on 7/12/2012 it is confirmed by him that all the nine concerns i.e. M/s V.S.K. Enterprises, M/s Forum all the nine concerns i.e. M/s V.S.K. Enterprises, M/s Forum all the nine concerns i.e. M/s V.S.K. Enterprises, M/s Forum Traders, M/s Apple Industries, M/s Adinath Traders, M/s Raviraj Apple Industries, M/s Adinath Traders, M/s Raviraj Impex Pvt. Ltd., M/s Impex Pvt. Ltd., M/s Shubham Enterprises, M/s Sameer Trading Enterprises, M/s Sameer Trading Corporation, M/s Hiten Corporation, M/s Hiten Enterprises, M/s Neelofar Trade Pvt. Ltd. are Enterprises, M/s Neelofar Trade Pvt. Ltd. are appearing in the list of appearing in the list of said hawala parties were engaged in hawala said hawala parties were engaged in hawala trading activity and have trading activity and have issuing sales bills without making actual issuing sales bills without making actual delivery of goods. delivery of goods. viii. During the course of survey proceeding, carried out by the During the course of survey proceeding, carried out by the During the course of survey proceeding, carried out by the Investigation wing of the Income Department he had furnished wing of the Income Department he had furnished mapping of each of the mapping of each of the sale shown in his two concerns i.e. M/s sale shown in his two concerns i.e. M/s Bigwin paper Distributors Pvt. Bigwin paper Distributors Pvt. Ltd. and M/s. Arun Paper and Iron Ltd. and M/s. Arun Paper and Iron Traders with the respective purchase with the respective purchase relevant to the financial year relevant to the financial year 2006-07, financial year 2007 07, financial year 2007-08, financial year 2008-09, financial 09, financial year 2009-10 and financial year 2010 10 and financial year 2010-11. It is M/s Elphinstone Paper Box M/s Elphinstone Paper Box 13 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors. stated by him that in stated by him that in both the concerns business is closed down after both the concerns business is closed down after September, 2011. 2011. ix. During the course of captioned assessment proceeding, while During the course of captioned assessment proceeding, while During the course of captioned assessment proceeding, while recording his statement on 02/02/2015 and 24/02/2015, a copy of his statement on 02/02/2015 and 24/02/2015, a copy of his statements, his statements, recorded on oath in the course of survey proceeding recorded on oath in the course of survey proceeding on 06/12/2013and on 06/12/2013and 7/12/2013 along with the mapping detail 7/12/2013 along with the mapping detail purchases and sales, urchases and sales, (procured from the Investigation wing of (procured from the Investigation wing of Income Tax Department) was Income Tax Department) was provided to Mr. Arun Agarwal and was provided to Mr. Arun Agarwal and was asked to go through and give his asked to go through and give his comments on the same. It is stated comments on the same. It is stated by him that that he has gone the by him that that he has gone the through the statements, record through the statements, recorded during the course of survey during the course of survey proceeding and the mapping of proceeding and the mapping of purchases and sales of both his entities purchases and sales of both his entities relevant to financial year relevant to financial year 2006-07, 2007-08, 2008-09 and 2009 09 and 2009-10. He these statements had been given by him and the further admitted that further admitted that these statements had been given by him and the facts mentioned facts mentioned in the statements were given by him and are true& the statements were given by him and are true& correct and still correct and still acceptable to him. It is further admitted by him that the acceptable to him. It is further admitted by him that the mapping report of the purchase and sales shown to him is also related report of the purchase and sales shown to him is also related report of the purchase and sales shown to him is also related to the his two concerns and is also acceptable to him. his two concerns and is also acceptable to him.
4.1 (vi) From the statement of Mr. Arun Agarwal on various dates in the From the statement of Mr. Arun Agarwal on various dates in the From the statement of Mr. Arun Agarwal on various dates in the course of survey proceeding and in the captioned assessment proceeding and the of survey proceeding and in the captioned assessment proceeding and the of survey proceeding and in the captioned assessment proceeding and the mapping report of the purchase and sales of both his concerns provided by him mapping report of the purchase and sales of both his concerns provided by him mapping report of the purchase and sales of both his concerns provided by him as well procured from the Invest as well procured from the Investigation wing of the Income Tax Department, igation wing of the Income Tax Department, Mumbai, it is emerged that during the financial year 2006 Mumbai, it is emerged that during the financial year 2006-07 all the sales, 07 all the sales, claimed to have made by M/s Bigwin Paper Distributors Pvt. Ltd. and M/s Arun claimed to have made by M/s Bigwin Paper Distributors Pvt. Ltd. and M/s Arun claimed to have made by M/s Bigwin Paper Distributors Pvt. Ltd. and M/s Arun Paper & Iron Traders to M/s Goel Packaging were sourced from two concerns Paper & Iron Traders to M/s Goel Packaging were sourced from Paper & Iron Traders to M/s Goel Packaging were sourced from M/s V.S.K. Enterprises and M/s Foram Traders. It is also clear that from the V.S.K. Enterprises and M/s Foram Traders. It is also clear that from the V.S.K. Enterprises and M/s Foram Traders. It is also clear that from the detail mentioned above that both these parties were engaged in "Hawala mentioned above that both these parties were engaged in "Hawala mentioned above that both these parties were engaged in "Hawala Activity" i.e. issuing sales bills without making actual delivery of the goods. i.e. issuing sales bills without making actual delivery of the goods. i.e. issuing sales bills without making actual delivery of the goods.”
M/s Elphinstone Paper Box M/s Elphinstone Paper Box 14 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
6.4 Thus it is clear that in the case of the assessee source of is clear that in the case of the assessee source of is clear that in the case of the assessee source of information is not Sales Tax Department and information is received information is not Sales Tax Department and information is received information is not Sales Tax Department and information is received only from the Investigation Wing of the Department only from the Investigation Wing of the Department only from the Investigation Wing of the Department, which is an internal source and and not external law enforcement law enforcement agencies as specified in exception 10(e) of the CBDT Letter under reference n exception 10(e) of the CBDT Letter under reference n exception 10(e) of the CBDT Letter under reference reproduced above.
6.5 In view of the above appeals filed by the Revenue are covered In view of the above appeals filed by the Revenue are covered In view of the above appeals filed by the Revenue are covered by the Circular No. 17/2019 dated 08.08.2019 being tax effect by the Circular No. 17/2019 dated 08.08.2019 being tax effect by the Circular No. 17/2019 dated 08.08.2019 being tax effect involved less than the monetary limit prescribed in the said Circular. involved less than the monetary limit prescribed in the said Circular. involved less than the monetary limit prescribed in the said Circular. These appeals of the Revenue are These appeals of the Revenue are treated as infructuous and treated as infructuous and accordingly dismissed. ccordingly dismissed.
6.6 As these appeals have already been dismissed, the cross As these appeals have already been dismissed, the cross- As these appeals have already been dismissed, the cross objection raised by the assessee in respective appeals are objection raised by the assessee in respective appeals are objection raised by the assessee in respective appeals are accordingly allowed. .
M/s Elphinstone Paper Box M/s Elphinstone Paper Box 15 Manufacturing Co & 11 Ors. ITA Nos. 445/M/2021 & 11 Ors.
In the result, the appeals filed by the Revenue are dismissed, In the result, the appeals filed by the Revenue In the result, the appeals filed by the Revenue whereas cross objection raised by the assessee are s objection raised by the assessee are allowed allowed.