Income Tax Appellate Tribunal - Mumbai
Ito 8(2)(1), Mumbai vs Shruti Print Solutions P.Ltd, Mumbai on 23 July, 2019
1 आयकर अपीलीय अिधकरण " जी" ायपीठ मुं बई म ।
IN THE INCOME TAX APPELLATE TRIBUNAL "G" BENCH, MUMBAI माननीय ी महावीर िसं ह, ाियक सद एवं माननीय ी मनोज कुमार अ वाल ,लेखा सद के सम ।
BEFORE HON'BLE SHRI MAHAVIR SINGH, JM AND HON'BLE SHRI MANOJ KUMAR AGGARWAL, AM M.A. No. 43/Mum/2019 [Arising Out of I.T.A. No.2400/Mum/2017] ( िनधा रणवष / Assessment Year: 2009-10) Income tax Officer-8(2)(1) M/s. Shruti Print Solutions Pvt. Ltd.
Room No.477B, 4th Floor बनाम
नाम/
नाम A/2/63, Shah & Nahar Industrial Estate Aaykar Bhavan, M.K. Road Vs. Sitaram Jadhav Road Mumbai-400 020. Lower Parel (W), Mumbai-400 013. ःथायीले खासं . / जीआइआरसं . /PAN/GIR No. AAJCS-7831-H (अपीलाथ /Appellant) : (ू यथ / Respondent) Assessee by : Dr. K.Sivaram, Sr.Advocate & Ms. Neelam Jadhav-Ld.ARs Department by : Chaudhary Arun Kumar Singh-Ld.DR सुनवाईक तार"ख/ : 10/05/2019 Date of Hearing घोषणाक तार"ख / : 23/07/2019 Date of Pronouncement आदे श / O R D E R Manoj Kumar Aggarwal (Accountant Member): -
1. By way of this application, the revenue seeks recall of Tribunal order ITA No. 2400/Mum/2017 passed in revenue's appeal on 21/08/2018 for Assessment Year 2009-10.2
2. Drawing our attention to the application, Ld. Departmental Representative [DR], submitted that the revenue's appeals were dismissed keeping in view Low-Tax Effect Circular No. 03/2018 issued by CBDT on 11/07/2018.
3. In the above background, our attention has been drawn to the fact that reassessment proceedings were initiated based upon inquiry conducted by the DGIT (Investigation), Mumbai triggered by information from the Sales Tax Department, Maharashtra that the assessee made bogus purchases from certain Hawala Dealers.
4. The Ld. DR further submitted that Clause 10 of Circular No. 03/2018 dated 11/07/2018 stood amended by the same authority on 20/08/2018 wherein new exceptions (e) & (f) were added. Therefore, the facts of the case were covered by exception (e) of clause 10 of the said circular as amended w.e.f 20/08/2018, which read as under: -
10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: -
....
(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI / ED / DRI / SFIO / Directorate General of GST Intelligence (DGGI).
....
In the aforesaid background, Ld. DR pleaded for recall of the stated order.
5. On the other hand, Ld. Sr. Counsel, Dr. K. Sivaram submitted that the said amendment was never available before the bench at the time of hearing. Reliance has been placed on the recent decision of this Tribunal 3 rendered in ACIT V/s Ram Builders (MA No. 04/Mum/2019 order dated 20/03/2019) to rebut the stand of revenue. The submissions have been made to submit that information from Sales Tax Department could not be said to be covered under the stated clause.
6. Upon careful consideration, we find that the cited decision of Tribunal would not be applicable to the facts since the revised circular, in that case, was never in existence at the time of hearing i.e. 10/08/2018 and therefore, there could no occasion to consider the same. However, the appeal under consideration was heard and pronounced on the same date i.e. 21/08/2018. On that date, CBDT circular dated 11/07/2018 stood amended w.e.f. 20/08/2018 and was very much applicable on the date of hearing.
7. Proceeding further, we find that reassessment proceedings were triggered on the basis of investigations being carried out by Sales Tax Department, Maharashtra and the said authority, in our considered opinion, would constitute external sources in the nature of law enforcement agency, covered by clause (e) of para 10. The specific authorities as mentioned in the said clause has been given by way of illustration only and could not be said to be a exhaustive list which is evident from the use of words such as...
8. Therefore, finding merits is revenue's submissions, the aforesaid order of the Tribunal ITA No. 2400/Mum/2017 dated 21/08/2018 stands recalled for fresh hearing on merits. The registry is directed to fix the appeal for fresh hearing in due course after giving due intimation to both the parties.
9. In result, the application stands allowed.
4Order pronounced in the open court on 23rd July, 2019.
Sd/- Sd/-
(Mahavir Singh) (Manoj Kumar Aggarwal)
ाियक सद / Judicial Member लेखा सद / Accountant Member
मुंबई Mumbai; िदनां कDated : 23/07/2019 Sr.PS:-Jaisy Varghese आदे श की ितिलिप अ े िषत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. !"थ / The Respondent
3. आयकरआयु$(अपील) / The CIT(A)
4. आयकरआयु$/ CIT- concerned
5. िवभागीय!ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai
6. गाड+ फाईल / Guard File आदे शानुसार/ BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, मुंबई / ITAT, Mumbai.