ASSISTANT COMMISSIONER OF INCOME TAX AMRAVATI CIRCLE, AMRAVATI vs. SIDDHESH MAHENDRA KHARA, AMRAVATI

ITA 393/NAG/2019Status: DisposedITAT Nagpur10 October 2022AY 2011-124 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as the tax effect was below the revised monetary limit prescribed by the CBDT. The Tribunal also noted that the exception clause cited by the Revenue was not countenanced by previous Tribunal decisions.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2011-12. The tax effect in the appeal was less than the revised monetary limit for filing appeals by the Department.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the tax effect being below the revised monetary limit for appeals. Whether the exception clause for bogus purchases applies to the current appeal.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned in the judgment for the dismissal reason, but related to appeal filing limits and exceptions.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC BENCH, NAGPUR

Before: SHRI R.S. SYAL

For Appellant: Shri Rajesh V. Loya

For Respondent: Shri G.J. Ninawe

PER R.S. SYAL, VP:

This appeal by the Revenue is directed against the order passed by the CIT(A)-1, Nagpur, dated 18-09-2019 in relation to the assessment year 2011-12. 2. At the outset, the ld. AR submitted that the tax effect in this case is less than Rs.50.00 lakh, to which the ld. DR fairly conceded.

2 Siddhesh Mahendra Khara

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

3 Siddhesh Mahendra Khara

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). Not only that, even the Miscellaneous application filed u/s 254(2) on this issue has also been dismissed in DCIT vs. M/s Rang Rasayan (M.A.No.60/PUN/2019 dt. 14-01-2020). No contrary view has been brought to my notice on behalf of the Revenue. Respectfully following the above precedent, I am not inclined to accept the contention of the Revenue. In view of the foregoing discussion, I dismiss the appeal filed by the Revenue.

In the result, the appeal is dismissed.

Order pronounced in the Open Court on 10th October, 2022. - (R.S.SYAL) VICE PRESIDENT

पुणे Pune; ददिधांक Dated : 10th October, 2022 GCVSR

4 Siddhesh Mahendra Khara

आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: अपीऱधर्थी / The Appellant; 1. प्रत्यर्थी / The Respondent;

2.3.

The CIT(A)-1, Nagpur

The Pr.CIT-1/2/3, Nagpur 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, Nagpur / DR, Nagpur 6. गार्ड फाईल / Guard file आदेशानुसार/ BY ORDER, //// Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune

Date

Draft dictated on 10-10-2022 Sr.PS

Draft placed before author 10-10-2022 Sr.PS

Draft proposed & placed before the JM second member

Draft discussed/approved by Second JM Member.

Approved Draft comes to the Sr.PS/PS Sr.PS

Kept for pronouncement on Sr.PS

Date of uploading order Sr.PS

File sent to the Bench Clerk Sr.PS

Date on which file goes to the Head Clerk

10.

Date on which file goes to the A.R.

11.

Date of dispatch of Order.

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