INCOME-TAX OFFICER, WARD - 6(4), PUNE vs. YUSUF GULAMMOHMMED PATEL, PUNE

आदेश / ORDER PER ANIL CHATURVEDI, AM :

This appeal filed by the Revenue is emanating out of the order of 1. Commissioner of Income Tax (A) – 4, Pune dt.02.08.2018 for the assessment year 2009-10.

Assessee is an individual stated to be engaged in the business of M.S. Plate and Profile Cutting. Assessee filed his return of income for A.Y. 2009-10 on 30.09.2009 declaring total income at Rs.4,12,410/-. The return was duly processed u/s 143(1) of the Act. On receipt of information from the Office of Director General (Inv.,) Pune regarding Hawala transactions amounting to Rs.27,42,943/- for A.Y. 2009-10 wherein the

assessee was one of the beneficiaries, who availed accommodation entries

from Rashmi Enterprises, notice u/s 148 of the Act was issued.

Subsequently, notice u/s 142(1) of the Act dt.19.12.2014 along with

questionnaire was issued. Thereafter, the case was taken up for scrutiny

and assessment was framed u/s 143(3) r.w.s. 147 of the Act vide order

dt.25.03.2015 and the total income was determined at Rs.31,55,353/-

inter-alia by making addition of Rs.27,42,943/- being bogus purchases.

On such addition of Rs.27,42,943/- AO vide order dt.08.07.2015 passed

u/s 271(1)(c) of the Act levied penalty of Rs.9,26,263/-. Aggrieved with

the penalty order of AO, assessee carried the matter before Ld.CIT(A), who

vide order dt.02.08.2018 (in appeal No.PN/CIT(A)-3/Wd 3(1), Pn/261/

2015-16) V/ITO Wd.9(3)/138/2013-14) granted partial relief to the

assessee. Aggrieved by the order of Ld.CIT(A), Revenue is now in appeal

before us and has raised the grounds which are argumentative in nature

and therefore not reproduced but the only grievance of the Revenue is

with respect to the deletion of penalty of Rs.9,26,263/- u/s 271(1)(c) of

the Act.

however an adjournment application was filed. Before us, Ld.D.R. fairly

admitted that the tax effect involved in the present appeal of Revenue is

below the monetary limit prescribed by CBDT Circular dated 11.07.2018.

In view of the aforesaid submission of Ld.D.R. and based on the material

available on record, we proceed to dispose of the appeal ex-parte qua the

assessee.

record. On perusing the grounds of appeal raised by the Revenue, we find

that Revenue is aggrieved by the order of ld. CIT(A) in respect of deletion of

penalty of Rs.9,26,263/-. As per the recent announcement of Central

Board of Direct Taxes (CBDT) dated 11.07.2018 (Circular No. 3 of 2018),

no Department appeals are to be filed against relief given by ld. CIT(A)

before the Income Tax Appellate Tribunal unless the tax effect, excluding

interest, exceeds Rs.20 lakhs and it further states that the instructions

will apply retrospectively to the pending appeals also. In the present case,

it is an undisputed fact that on the addition which is in dispute, the tax

effect is less than Rs.20 lakhs. In the absence of any material placed on

record by the Revenue to demonstrate that the issue in the present appeal

is covered by exceptions provided in para 10 of the aforesaid CBDT

Circular, we are of the view that the monetary limit prescribed by the

instructions of the aforesaid CBDT Circular would be applicable to the

present appeal of the Department. We therefore hold the present appeal of

Revenue to be not maintainable on account of low tax effect and

accordingly dismiss the appeal of Revenue without expressing any opinion

on merits of the case. However, in case there is any error in the

computation of the tax effect involved or if for any reason, the aforesaid

CBDT Circular is not applicable, it would be open to the Revenue to seek

revival of the appeal. Thus, the grounds of the Revenue are dismissed.

Order pronounced on 24th day of July, 2019.

Sd/- Sd/- (SUSHMA CHOWLA) (ANIL CHATURVEDI) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER

पुणे Pune; �दनांक Dated : 24th July, 2019. Yamini

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent 3. CIT(A)-4, Pune. Pr. CIT-3, Pune. 4. 5 �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “बी” / DR, ITAT, “B” Pune; गाड� फाईल / Guard file. 6.

आदेशानुसार/ BY ORDER

// True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.