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Income Tax Appellate Tribunal - Mumbai

Acit 12(2)(2), Mumbai vs Giriraj Civil Developers P.Ltd, Mumbai on 20 August, 2019

1 ITA No.1183/Mum/2017 M/s. Giriraj Civil Developers Private Limited Assessment Year :2007-08 आयकर अपीलीय अिधकरण "जी" ायपीठ मुंबई म । IN THE INCOME TAX APPELLATE TRIBUNAL "G" BENCH, MUMBAI माननीय ी सी. एन. साद, ाियक सद एवं माननीय ी मनोज कुमार अ वाल ,ले खा सद के सम । BEFORE HON'BLE SHRI C.N. PRASAD, JM AND HON'BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ I.T.A. No.1183/Mum/2017 (िनधा रण वष / Assessment Year: 2007-08) ACIT-12(2)(2) M/s. Giriraj Civil Developers Pvt. Ltd. Room No.145, 1 s t Floor, बनाम/ B-5, Paras Darshan, S.V. Road, Aaykar Bhavan, M.K. Road Vs. Borivali (E) Mumbai-400 020. Mumbai-400 066.

थायीले खासं ./जीआइआरसं ./PAN/GIR No. AACCG-4613-L (अ पीलाथ#/Appellant) : ( $थ# / Respondent) Assessee by : Ms. Morvi Chaturvedi-Ld.AR Revenue by : Chaudhary Arun Kumar Singh - Ld.Sr.DR सुनवाई की तारीख/ : 20/08/2019 Date of Hearing घोषणा की तारीख / : 20/08/2019 Date of Pronouncement आदे श / O R D E R Per Manoj Kumar Aggarwal (Accountant Member)

1. Aforesaid appeal by revenue for Assessment Year [in short referred to as 'AY'] 2007-08 contest the order of Ld. Commissioner of Income- Tax (Appeals)-20, Mumbai, [in short referred to as 'CIT(A)'], Appeal No. CIT(A)-20/ACIT -12(2)(2)/IT-91/2015-16 dated 07/11/2016 as corrected vide corrigendum dated 11/01/2017 on following grounds of appeal: -

M/s. Giriraj Civil Developers Private Limited Assessment Year :2007-08

1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition of Rs.1,00,00,000/- on account of disallowance u/s. 68 of the Act made by the AO without appreciating that the facts of the case elaborately discussed by the AO in the assessment order u/s. 143(3) of the I.T. Act."

2. The Ld. Authorized Representative for assessee, at the outset, submitted that the tax effect of quantum additions being contested by the revenue is below threshold monetary limit of Rs.50 Lacs as prescribed by Central Board of Direct Taxes in its recently issued Circular No.17/2019 dated 08/08/2019 [F.No.279/Misc.142/2007-TTJ(Pt.) Government of India, Ministry of Finance, Department of Revenue] and therefore, the appeal deserve to be dismissed. The Ld. Departmental Representative, on the other hand, submitted that the quantum additions were made on the basis of information received from DGIT (Investigation), Mumbai and therefore, the case would fall under exception 10(e) of Circular No. 03 of 2018 dated 11/07/2018 as amended on 20/08/2018.

3. Upon perusal, it is undisputed position that the tax effect of the quantum additions being contested by the revenue is less than prescribed monetary limit of Rs.50 Lacs and the same is covered by recently issued low tax effect Circular No.17/2019 dated 08/08/2019 issued by Central Board of Direct Taxes [CBDT]. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. The aforesaid limits, as per para 13 of the Circular no. 3 of 2018 dated 11/07/2018, applies to pending appeals also.

M/s. Giriraj Civil Developers Private Limited Assessment Year :2007-08

4. So far as the plea of Ld. DR is concerned, we find that information received from DGIT (Investigation) would not constitute external sources within the meaning of clause (e) of para 10 of circular no. 03/2018 dated 11/07/2018 as amended on 20/08/2018. This view has been taken by the co-ordinate bench of this Tribunal in the case of ITO V/s Late Shri Amarchand P. Shah, ITA No.818-820/Mum/2017 order dated 08/07/2019 wherein it has been held that Directorate of Income Tax (investigation) works under the aegis of investigation division of CBDT who is its controlling authority and hence, could not be called as external source.

5. Keeping in view the same, we dismiss the appeal with a liberty to the revenue to seek recall of the appeal, if at a later stage, it is found that the matter is covered by any exceptions provided in the aforesaid circular or in case the tax effect of the quantum additions as agitated by revenue exceeds the prescribed monetary limit.

6. The appeal stands dismissed.

Order pronounced in the open court on 20th August, 2019.

               Sd/-                           Sd/-
           (C.N. Prasad)            (Manoj Kumar Aggarwal)

ाियक सद / Judicial Member लेखा सद / Accountant Member मुंबई Mumbai; िदनां क Dated : 20/08/2019 Sr.PS, Jaisy Varghese आदे शकी5ितिलिपअ7ेिषत/Copy of the Order forwarded to :

1. अपीलाथ#/ The Appellant

2. $थ#/ The Respondent

3. आयकरआयुJ(अपील) / The CIT(A) 4 ITA No.1183/Mum/2017 M/s. Giriraj Civil Developers Private Limited Assessment Year :2007-08

4. आयकरआयुJ/ CIT- concerned

5. िवभागीय ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai

6. गाडO फाईल / Guard File आदे शानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, मुंबई / ITAT, Mumbai.