DCIT-10(3)(2), Mumbai v. M/S PIK PEN PVT. LTD., Mumbai

ITA 5003/MUM/2019 | 2013-2014
Pronouncement Date: 23-03-2021 | Result: Dismissed

Appeal Details

RSA Number 500319914 RSA 2019
Assessee PAN AABCP0512A
Bench Mumbai
Appeal Number ITA 5003/MUM/2019
Duration Of Justice 1 year(s) 7 month(s) 23 day(s)
Appellant DCIT-10(3)(2), Mumbai
Respondent M/S PIK PEN PVT. LTD., Mumbai
Appeal Type Income Tax Appeal
Pronouncement Date 23-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 23-03-2021
Last Hearing Date 08-03-2021
First Hearing Date 08-03-2021
Assessment Year 2013-2014
Appeal Filed On 31-07-2019
Judgment Text
ITA NO.5003/MUM/2019 A.Y.2013 - 14 DY. COMMISSIONER OF INCOME TAX - 10(3)(2) 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C MUMBAI BEFORE SHRI M. BALAGANESH (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO. 5003/MUM/2019 (ASSESSMENT YEAR: 2013 - 14) DY. COMMISSIONER OF INCOME TAX - 10(3)(2) 2 ND FLOOR ROOM NO. 212 AAYAKAR BHAWAN M.K. ROAD CHURCHGATE MUMBAI 400 020 VS. M/S PIK PEN PVT. LTD. 7 PARSIAN BLDG. OPP. NADCO V.P. ROAD ANDHERI WEST MUMBAI 400058 PAN NO. AABCP0512A APPELLANT RESPONDENT REVENUE BY : MS. SHREEKALA PARDESHI D.R ASSESSEE BY : NONE DATE OF HEARING : 08/03 /2021 DATE OF PRONOUNCEMENT : 23 /03 /202 1 ORDER PER RAVISH SOOD JM THE PRESENT APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) - 17 MUMBAI DATED 31.05.2019 WHICH IN TURN ARISES FROM THE ASSESSMENT ORDER PASSED BY THE A.O UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961 (FOR SHORT ACT) DATED 29.03.2016 FOR A.Y. 2013 - 14 . THE REVENUE HAS ASSAILED THE IMPUGNED ORDER BY RAISING THE FOLLOWING GROUNDS OF APPEAL BEFORE US: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ER RED IN RESTRICTING THE ADDITION TO 12.5% OF BOGUS PURCHASE OF RS.73 50 059/ - DESPITE UPHOLDING THAT THE ASSESSEE COMPANY IS UNABLE TO DISCHARGE ITS ONUS TO PROVE ITS PURCHASE FROM THE CLAIMED SUPPLIERS COMPLETELY . 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW WHETHER THE LD. CTT(A)IS CORRECT IN NOT FOLLOWING THE RATIO OF THE DECISION OF THE APEX COURT ON THE ISSUE OF BOGUS PURCHASES IN THE CASE OF N.K. PROTEINS LTD VS. DCIT [2017] 84 TAXMANN.C OM 195 (SC) DATED 16.01.2017 WHEREIN IT HAS BEEN HELD THAT THE ADDITION ON THE BASIS OF UNDISCLOSED INCOME RESTRICTED TO CERTAIN PERCENTAGE WHEN ENTI RE TRANSACTION WAS FOUND BOGUS. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE LD. CIT(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE AO BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUNDS OR ADD A NEW GROUND WHICH MAY BE NECESSARY. ITA NO.5003/MUM/2019 A.Y.2013 - 14 DY. COMMISSIONER OF INCOME TAX - 10(3)(2) 2 2. BRIEFLY STATED THE ASSESSEE COMPANY WHICH ENGAGED IN THE BUSINESS OF MANUFACTURING OF WRITING INSTRUMENTS AND PARTS THEREOF HAD E - FILED ITS RETURN OF INCOME FOR A.Y. 2013 - 14 DECLARING A TOTAL LOSS OF RS.(8 72 79 369/ - ). THE RETURN OF INCOME FILED BY THE ASSESSEE WAS PROCESSED AS SUCH UNDER SEC. 143(1) OF THE ACT. SUBSEQUEN TLY THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT UNDER SEC. 143(2) OF THE ACT. 3 . CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF M ONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 4 . CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20 00 000/ - . FOR THIS PURPOSE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. FURTHER TAX EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER THE TAX WILL NOT INCLUDE A NY INTEREST THEREON EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INC OME THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PAR A 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 5 . AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50 00 000/ - . 6 . AS IS DISCERNIBLE FROM THE MEMORANDUM OF APPEAL THE TAX EFFECT THEREIN INVOLVED IS BELOW THE M ONETARY LIMIT OF RS.50 00 000/ - . ITA NO.5003/MUM/2019 A.Y.2013 - 14 DY. COMMISSIONER OF INCOME TAX - 10(3)(2) 3 7 . ON BEING CONFRONTED WITH THE AFORESAID FACT THE LD. D.R DID NOT CONTROVERT THE AFORESAID FACTUAL POSITION. IT WAS HOWEVER SUBMITTED BY THE LD. D.R THAT LIBERTY M AY KINDLY BE GIVEN TO RAISE AFTER NECESSARY FURTHER VERIFICATION AND TO SEEK RECALL OF THE DISMISSAL OF APPEAL AND ITS RESTORATION IN CASE IT CAN BE SHOWN THAT THE APPEAL IS COVERED BY THE EXCEPTIONS. 8 . WE AGREE WITH THE ABOVE CONTENTIONS OF THE LD. DR A ND MAKE IT CLEAR THAT THE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEPTIONS AND WE WILL TAKE APPROPRIATE REMEDIAL MEASURES IN THIS REGARD. 9 . WITH THE ABOVE OBSERVATIONS THE APPEAL INVOLVING A TAX EFFECT OF LESS THAN RS.50 00 000/ - IS DISMISSED. ORDER P RO NOUNCED IN THE OPEN COURT ON 23 /03/2021 . SD/ - SD/ - ( M. BALAGANESH ) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 23 /03/2021 ROHIT P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE . BY ORDER //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT MUMBAI