A C I T - 19(3) Mathru Mandir Tardeo Road, Mumbai 400007 Vs. M/s. Vishal Diamonds 100A - Panchratna,Opera House, Mumbai 400004
September, 28th 2015
IN THE INCOME TAX APPELLATE TRIBUNAL
"SMC" Bench, Mumbai
Before Shri D. Manmohan, Vice President
ITA Nos. 4543 & 4547/Mum/2015
(Assessment Years: 2007-08 & 2011-12)
A C I T - 19(3) M/s. Vishal Diamonds
Mathru Mandir Vs. 100A - Panchratna,
Tardeo Road, Mumbai 400007 Opera House, Mumbai 400004
PAN - AACFV0161D
Appellant by: Shri Vishwas Jadhav
Respondent by: None
Date of Hearing: 24.09.2015
Date of Pronouncement: 24.09.2015
Per D. Manmohan, V.P.
These two appeals are filed at the instance of the Revenue and
they pertain to assessment years 2007-08 and 2011-12.
2. None appeared on behalf of the assessee. The learned D.R.
submitted that the AO made an addition of `29,290/- in A.Y. 2007-08
and `1,22,096/- in A.Y. 2011-12 by estimating 20% of the purchase
as bogus and also disallowed the entire purchase cost whereas the
learned CIT(A) observed that the payments are made by account
payee cheques and therefore he directed the AO to disallow 12.5% of
the purchases made in respective years. The learned D.R. admitted
that the tax effect in each year is less than `1,00,000/-
3. It is well settled, as per the CBDT Instruction No.5/2014 dated
10.07.2014, that the Revenue should not prefer an appeal if the tax
effect is below `4,00,000/- unless there are justifiable reasons which
are recorded in the authorisation memo. The learned D.R. admitted
that there is no such reason recorded in the instant case.
2 ITA Nos. 4543 & 4347/Mum/2015
M/s. Vishal Diamonds
4. Having regard to the circumstances of the case, I am of the
view that the appeals filed by the Revenue deserve to be dismissed
on the ground that the tax effect involved in each case is less than
`4,00,000/- and hence the appeals filed are in contravention to the
mandatory instruction issued by the CBDT, which is binding upon the
5. In the result, appeals filed by the Revenue are dismissed.
Order pronounced in the open court on 24th September, 2015.
Mumbai, Dated: 24th September, 2015
1. The Appellant
2. The Respondent
3. The CIT(A) 29, Mumbai
4. The CIT 18, Mumbai City
5. The DR, "SMC" Bench, ITAT, Mumbai
ITAT, Mumbai Benches, Mumbai