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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI VIKAS AWASTHY
आदेश/ ORDER
These three appeals by the Revenue are directed against the order of Commissioner of Income Tax (Appeals) – 8, Mumbai [in short ‘the CIT(A)’] for the assessment years 2010-11, 2011-12 and 2009-10, respectively. All the three impugned orders are of even date i.e. 30/11/2018.
The assessee is engaged in the business of trading in steel. The Assessing Officer held that the assessee has indulged in obtaining bogus purchase bills from the Hawala dealers in the impugned assessment years and made addition of 25% of the bogus purchases:- Assessment Year Addition made by A.O (in. Rs.) 2009-10 33,46,649/- 2010-11 23,04,751/- 2011-12 5,61,729/- Aggrieved by the additions, the assessee filed appeal before the CIT(A). The CIT(A) granted part relief to the assessee by restricting the addition to 12.5% of the aggregate alleged bogus purchases. Thus, the CIT(A) deleted 50% of the addition made by Assessing Officer.
Ms. Kavita P. Kaushik, representing the Department fairly admitted the 3. tax effect involved in these appeals is less than the monetary limit prescribed by the recent CBDT Circular No. 17/2019, dated 08-08- 2019 for filing of appeals before the Tribunal by the Department.
The tax effect in the present appeals (as declared in Form 36) by the Department before the Tribunal is: Assessment Year Tax Effect 2009-10 Rs.5,17,057/- 2010-11 Rs. 3,56,084/- 2011-12 Rs.86,786/- Undisputedly, the tax effect is less than the monetary limit prescribed by the CBDT for filing of appeals before the Tribunal. The CBDT vide circular dated 08-08-2019 (supra) has amended Para 3 of Circular No. 3 of 2018 dated 11-07-2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing of appeals by the Department before the Tribunal. Thus, without going into merits of the issue raised in the appeals, the present appeals by the Revenue are dismissed on account of low tax effect.
Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal(s), with the requisite material to show that the appeal(s) is/are protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20/08/2018.
In the result, appeals of the Revenue are dismissed.
Order pronounced in the open Court at the conclusion of hearing on Tuesday the 15th day of September, 2020.
Sd./- (VIKAS AWASTHY) �या�यक सद�य/JUDICIAL MEMBER मुंबई/ Mumbai, �दनांक/Dated: 15/09/2020 Vm, Sr. PS(O/S)
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