DEPUTY COMMISSIONER OF INCOME-TAX, PANVEL CIRCLE,, PANVEL vs. M/S. POORNIMA ELECTRICALS,, RAIGAD

This appeal by the Revenue is directed against the order passed by the ld. CIT(A)-5, Pune on 17-06-2019 in relation to the assessment year 2011-12.

At the outset, the ld. DR admitted that the tax effect in this case is less than Rs.50.00 lakh.

The CBDT has issued circular No.17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11-07-2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at Rs.20.00 lakh. Such limit has now been enhanced in the Circular dated 08-08-2019 to Rs.50.00 lakh. Since tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakh, I am not inclined to entertain this appeal.

At this juncture, it is pertinent to note that the CBDT vide F.No.279/Misc/M-13/2018-ITJ dated 20-08-2019 has clarified that the revised monetary limits so mentioned in Circular No.17/2019 are applicable to all pending appeals.

As regards the contention of the ld. DR that the additions in this case were made on the basis of information received from the Sales tax department about the assessee indulging in bogus purchases and hence covered under the exception clause of 10(e) of the CBDT’s Instruction No.3/2018, dt. 11-07-2018 as assailed in the grounds of appeal, I find that such a contention has not been countenanced by the Pune Benches of the Tribunal in several cases including ITO vs. M/s Param Marketing (ITA No.1872/PUN/2019 dt.30-01-2020) and ITO vs. Yusuf Gulmmohmmed Patel (ITA No.1852/PUN/2019 dt.30-01-2020).

In the result, the appeal is dismissed.