Income Tax Appellate Tribunal - Jaipur
Income Tax Officer, Ward -1-5, Jaipur vs M/S Vkt Gems Pvt. Ltd., Jaipur on 31 July, 2019
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IN THE INCOME TAX APPELLATE TRIBUNAL,
JAIPUR BENCHES (SMC), JAIPUR
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Before : Shri Ramesh C.Sharma, ACCOUNTANT MEMBER
vk;dj vihy la-@ITA No. 811/JP/2019
fu/kZkj.k o"kZ@Assessment Year : 2007-08
The ITO cuke M/s. VKT Gems Pvt. Ltd.
Ward- 1(5), Vs. 1810, IInd Crossing, Haldiyon Ka
Jaipur Rasta, Johri Bazar, Jaipur
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABCV 1774 E
vihykFkhZ@Appellant izR;FkhZ@Respondent
jktLo dh vksj ls@ Revenue by: Shri Rajender Singh, Addl. CIT-DR
fu/kZkfjrh dh vksj ls@ Assessee by :None
lquokbZ dh rkjh[k@ Date of Hearing : 31/07/2019
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 31/07/2019
vkns'k@ ORDER
PER RAMESH C. SHARMA, AM
This is an appeal filed by the Revenue against the order of the ld. CIT(A)-1, Jaipur dated 29-03-2019 for the Assessment Year 2007-08, in the matter of order passed u/s 143 (3)/ 147 of the I.T. Act, 1961. 2.1 In this appeal, the tax effect is below the limit prescribed by the CBDT Circular No. 03 of 2018 dated 20-08-2018. However, it was contended by the ld. DR that the case is covered by exceptional clause 2 ITA No.811/JP/2019 ITO, Ward- 1(5), Jaipur vs M/s. VKT Gems Pvt Ltd. 10(e) of the Circular No. 03 of 2018. The ld. DR has placed on record the circular dated 20-08-2018 wherein clause (e) reads as under
''(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ED/DRI/SFOI/ Directorate General of GST Intelligence (DGGI).'' 2.2 The ld. DR has been heard and record perused. I have carefully gone through clause (e) of the CBDT Circular No. 03/2018 which provides that where addition is based on information received from external sources, the Department is to file the appeal even if the tax effect is below the prescribed limit. However, in this case, I find that it was reopened on the basis of an information of Director of Investigation, Income Tax, which is not an external source but it was an internal wing of the Department itself. Thus as per my considered view, it is not covered by exception and since the tax effect is less than Rs. 20 lacs, therefore, the appeal of the revenue deserves to be dismissed. A number of judgements, holding the issue in favour of the assessee on clause 10(e) of the said Circular by the ITAT, Mumbai Bench are as under:-
1. ACIT vs MM Corporation (M.A. No.24/MUM/2019 arising out of ITA No.20152/Mum/2018) pronounced on 23-07-
2019.
2. ITO vs Late Amarchand P Shah, thru l/h (ITA No. 818-820/Mum/2017 pronounced on 08-07-2019 3 ITA No.811/JP/2019 ITO, Ward- 1(5), Jaipur vs M/s. VKT Gems Pvt Ltd. Following the above judicial pronouncements, I do not find any merit in the appeal filed by the Revenue having tax effect of prescribed limit of less than Rs. 20 lacs. Thus the appeal of the Revenue is dismissed. 3.0 In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 31/07/2019.
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(Ramesh C. Sharma)
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fnukad@Dated:- 31 /07/ 2019
*Mishra
vkns'k dh izfrfyfi vxzfs 'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- ITO, Ward- 2(1), Jaipur
2. izR;FkhZ@ The Respondent- M/s.VKT Gems Pvt. Ltd. , Jaipur
3. vk;dj vk;qDr¼vihy ) @ CIT(A),
4. vk;dj vk;qDr@ CIT,
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur
6. xkMZ QkbZy@ Guard File (ITA No.811/JP/2019) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar