ACIT, WARDHA CIRCLE, WARDHA vs. M/S AUTOMARK TECHNOLOGIES (INDIA ) LIMITED, YAVATMAL

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ITA 403/NAG/2019Status: DisposedITAT Nagpur22 September 2023AY 2009-10Bench: SHRI SATBEER SINGH GODARA (Judicial Member), DR. DIPAK P. RIPOTE (Accountant Member)2 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 Revenue's appeal could not be sustained as the tax effect of the disputed addition was below the threshold limit prescribed by CBDT Circular No. 17 of 2019. Therefore, the appeal was rejected.

What were the facts?

The Revenue appealed against an order that deleted additions made under Section 68. The additions related to equity premium received by the assessee. The appeal was filed for the assessment year 2009-2010.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the low tax effect of the disputed addition, and whether the deletion of additions made under Section 68 by the CIT(A) was justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 68

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, NAGPUR BENCHES : NAGPUR

Before: SHRI SATBEER SINGH GODARA & DR. DIPAK P. RIPOTE

Hearing: 31.08.2023Pronounced: 22.09.2023

ITA.No.403/Nag./2019 Assessment Year 2009-2010 Assistant Commissioner Of M/s. Automark Income Tax Technologies (India) Wardha Circle, Wardha vs. Limited Gurukirpa Datta Square, Nagpur - 442001 PAN: AADCA4932F (Appellant) (Respondent) For Assessee : Shri P. M. Gandhi, CA For Revenue : Shri Sanjay Agrawal, DR Date of Hearing : 31.08.2023 Date of Pronouncement : 22.09.2023 ORDER PER SATBEER SINGH GODARA, J.M.

This Revenue’s appeal for A.Y. 2009-10, arises against the CIT(A)-2, Nagpur’s order dated 03.09.2019, passed in Case No.CIT(A)-2/107/2017-18, in proceedings under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 [“In short Act”].

2.

Heard both the parties. Case file perused.

3.

The Revenue raises the following substantive grounds in the instant appeal:

1.

"Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in holding that re-opening of the case was merely a change of opinion contrary to the view of judgment by Honorable Bombay High Court in the case of CIT-vs- Yuvraj 315 ITR 84 (Bom) inspite of the fact that AO had received specific information that equity plus premium received by assessee is bogus and there was reason to believe that income has escaped assessment.

2 ITA.No.403/Nag./2019 (ACIT vs. M/s. Automark Technologies (India) Limited

2. Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in direction the AO to delete the additions to the tune of Rs.49,50,000/- made u/s 68 of the IT Act, 1961 inspite of the fact that the assessee could not prove genuineness of the transaction and credit worthiness of companies.”

4.

The Revenue could hardly dispute the clinching fact that its sole substantive grievance seeking to revive Section 68 unexplained cash credit addition of Rs.49.50 lakhs; involves less than the minimum prescribed tax effect threshold limit of Rs.50 lakhs as per the CBDT’s latest Circular No.17 of 2019 dated 08/08/2019 made applicable to all pending appeals as well. The Revenue could hardly dispute any exception thereto in its above extracted grounds. This appeal is rejected in very terms. Ordered accordingly.

5.

This Revenue’s appeal is dismissed in above terms.

Order pronounced in the open court on 22.09.2023

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