INCOME TAX OFFICER , WARD -2(1), NAGPUR vs. M/S ADEQUATE INFRASTRUCTURE PRIVATE LIMITED, NAGPUR

PER SATBEER SINGH GODARA, J.M. :

This Revenue’s appeal for assessment year 2011-

2012, arises against the CIT(A)-1, Nagpur’s Order No.CIT(A)-1/

10538/2018-19, dated 05.08.2019, involving proceedings

u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short

“the Act”).

Heard both the parties. Case file perused.

grounds in the instant appeal :

2 I.T.A.No.313/NAG./2019 1. “Whether on the facts and in the circumstances of the case

and in law, the Ld CIT(A) has erred in deleting the addition

made by the AO u/s 68 of the Act, amounting to Rs. 50

lakhs as unexplained cash credit, inspite of the fact that

onus of proving credit worthiness and genuineness of the

transaction was solely with the assessee ?

and in law, the Ld CIT(A) has erred in holding that the

assessee company has duly discharged the onus placed

upon it u/s 68 of the Act ?

law, the Ld CIT(A) has erred in treating the statement

given by Shri. Shirish C Shah as general statement inspite

of the fact that this statement was recorded during the

search proceedings u/s 132(4) of the I.T.Act,1961. 4. This 2nd appeal is being filed in view of OM No. 279/

Misc/M-93/2018-ITJ(PI) dated 16/09/2019 wherein it is

directed that the monetary limits fixed for filing appeals

before ITAT/HC and SLPs before Supreme Court shall not

apply in case of the assessee claiming bogus LTCG/ STCG

through penny stocks and shall be contested on merits

and hence this 2nd appeal.

proceedings.”

3 I.T.A.No.313/NAG./2019 3. Suffice to say, the first and foremost issue which

arises for our apt adjudication herein is that of applicability of

CBDT’s circular no. 17/2019 dated 08.08.2019 prescribing

minimum tax effect of Rs.50 lakhs in all Revenue’s appeals

before the tribunal with retrospective effect. The Revenue’s

stand as per it’s 4th substantive ground is that the instant

case, although involve tax effect of Rs.30,51,710/- only

[column no.10 in Form.36] but, the same falls under the

exception clause as the assessee had claimed bogus

LTCG/STCG through penny stocks.

substantive ground seeking to carve out an exception to the

aforesaid CBDT’s low tax effect circular. This is for the precise

reason that the sole issue before us is regarding correctness of

Assessing Officer’s action having treated the assessee’s share

application/money of Rs.50 lakhs as unexplained cash credits

than any income derived from sale and purchase of shares and

scrip(s) treated as penny stock in the departmental

investigation. We thus reject the Revenue’s instant fourth

substantive ground in very terms. So is the out come of it’s

instant main appeal which is dismissed as involving lower

than the prescribed minimum tax effect of Rs.50 lakhs as per

CBDT’s circular (supra). Ordered accordingly.

4 I.T.A.No.313/NAG./2019

lower than the prescribed tax effect.

Order pronounced in the open Court on 28.09.2023.

Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER

Pune, Dated 28th September, 2023

VBP/-

Copy to

//By Order//

//True Copy //

Assistant Registrar, ITAT, Pune Benches, Pune.

S.No. Details Date 1 Draft dictated on 25.09.2023 Sr.PS 2 Draft placed before author 26.09.2023 Sr.PS 3 Draft proposed & placed before the Author .09.2023 J.M. 4 .09.2023 A.M. Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS .09.2023 Sr.PS 6 Kept for pronouncement on .09.2023 Sr.PS 7 Date of uploading of Order .09.2023 Sr.PS 8 File sent to Bench Clerk .09.2023 Sr.PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order