9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 251 - AT - Income TaxMaintainability of appeal - low tax effect - HELD THAT - There is no appearance from the side of assessee despite service of notice. The CBDT has issued circular No.17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11-07-2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at ₹ 20.00 lakh. Such limit has now been enhanced in the Circular dated 08-08-2019 to ₹ 50.00 lakh. Since tax effect in the instant appeals is less than the revised monetary limit of ₹ 50.00 lakh, we are not inclined to entertain the appeals of the Revenue. Hawala transaction - contention of the ld. DR that the appeals should not be dismissed because the additions in these cases were made on the basis of information received from the Sales tax department about the assessee indulging in hawala transactions - HELD THAT - Such a contention has not been countenanced by the Pune Benches of the Tribunal in several cases including ITO VS. M/s Param Marketing 2020 (1) TMI 1415 - ITAT PUNE and ITO VS. Yusuf Gulmmohmmed Patel 2020 (1) TMI 1416 - ITAT PUNE .Not only that, even the Miscellaneous application filed u/s 254(2) on this issue has also been dismissed in DCIT VS. M/s Rang Rasayan 2020 (1) TMI 1414 - ITAT PUNE . No contrary view has been brought to my notice on behalf of the Revenue. Respectfully following the above precedent, dismiss the appeals filed by the Revenue.
Issues:
1. Appeal against orders of Commissioner of Income-tax (Appeals) for assessment years 2009-10 & 2010-11. 2. Tax effect less than ?50.00 lakh. 3. Additions based on information from Sales Tax department regarding hawala transactions. 4. Revision of monetary limits for filing appeals by the Department. 5. Dismissal of appeals by the Revenue. 6. Precedents set by Pune Benches of the Tribunal regarding similar cases. Analysis: 1. The appeals were filed by the Revenue against the orders of the Commissioner of Income-tax (Appeals) for the assessment years 2009-10 & 2010-11. The tax effect in these appeals was acknowledged to be less than ?50.00 lakh by the ld. DR representing the Revenue. 2. The ld. DR argued that the additions in the appeals were based on information from the Sales Tax department indicating the involvement of the assessee in hawala transactions. The Revenue sought exception under clause (e) of para 10 of the CBDT Circular no. 03/2018 dated 11-07-2018, with the amendment dated 20-08-2018, to prevent dismissal of the appeals on this ground. 3. The Vice President of the ITAT Pune noted the revised monetary limits for filing appeals by the Department, as per circular No.17/2019 dated 08-08-2019, setting the limit at ?50.00 lakh. Since the tax effect in the current appeals was below this revised limit, the appeals were not entertained. 4. Referring to precedents set by the Pune Benches of the Tribunal in similar cases, including ITO VS. M/s Param Marketing and ITO VS. Yusuf Gulmmohmmed Patel, the Vice President dismissed the appeals filed by the Revenue. The dismissal was based on the consistent stance taken by the Tribunal regarding cases involving hawala transactions. 5. The Vice President emphasized that no contrary view had been presented by the Revenue, and in line with the established precedent, the appeals were dismissed. However, it was clarified that the Department could seek restoration of the appeals if they fell under any other exception clause of the Circular. 6. In conclusion, the appeals filed by the Revenue were dismissed by the Vice President, with the order pronounced in the Open Court on 27th January, 2021.
|
