Shree Vasupujya Estate Developers Pvt.Ltd., Ahmedabad V. The Income tax Officer,Ward-8(3), Ahmedabad

CO 1/AHD/2012

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 0474 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 18 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 21-04-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-03-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 02-01-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI RAJPAL YADAV JUDICIAL M EMBER THE ITO, WARD 8(3), AHMEDABAD (APPELLANT) VS SHREE VASUPUJAY ESTATE DEVELOPERS PVT. LTD, F.P. NO. 569, 402/403, VASUPUJAY COMPLEX, OPP. VASUPUJAY JAIN DERASAR, NR. NEHRUNAGAR, AMBAWADI, AHMEDABAD-380015 PAN: AAHCS9688Q (RESPONDENT) SHREE VASUPUJAY ESTATE DEVELOPERS PVT. LTD, F.P. NO. 569, 402/403, VASUPUJAY COMPLEX, OPP. VASUPUJAY JAIN DERASAR, NR. NEHRUNAGAR, AMBAWADI, AHMEDABAD-380015 PAN: AAHCS9688Q (CROSS OBJECTOR) VS THE ITO, WARD 8(3), AHMEDABAD (RESPONDENT) REVENUE BY: SHRI DINESH SINGH, SR. D.R. ASSESSEE BY: NONE ITA NO. 2734/AHD/2011 ASSESSMENT YEAR 2006-07 C.O. NO. 01/AHD/2012 (IN ITA NO. 2734/AHD/2011) ASSESSMENT YEAR 2006-07 I.T.A NO.2734/AHD/2011 & CO NO 01/AHD/2012 A.Y. 2 006-07 PAGE NO ITO VS. SHREE VASUPUJAY ESTATE DEVELOPERS PVT. LTD 2 DATE OF HEARING : 27-03-2015 DATE OF PRONOUNCEMENT : 21-04- 2015 / ORDER PER : RAJPAL YADAV, JUDICIAL MEMBER:- THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LD. CIT(A)- XIV DATED 12-082011 PASSED FOR ASSESSMENT YEAR 2006 -07. ASSESSEE HAS ALSO FILED A CROSS OBJECTION BEARING NO. 01/AHD /2012. 2. THE GRIEVANCE OF REVENUE IS THAT LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO COMPUTE THE INCOME OF ASSESSEE BY ESTIMAT ING GROSS PROFIT @ 8% INSTEAD OF 16% ESTIMATED BY AO 3. WITH THE ASSISTANCE OF LD. DR, WE HAVE GONE THRO UGH THE RECORD. THE ASSESSEE HAS SHOWN TOTAL RECEIPT OF RS. 1,07,92 ,000/-. THE AO HAS REJECTED THE BOOK RESULT OF THE ASSESSEE AND ESTIMA TED THE PROFIT @ 16% OF THE TOTAL RECEIPT. IN THIS WAY, HE MADE AN ADDITIO N OF RS. 17,26,720/-. 4. ON APPEAL, LD. FIRST APPELLATE AUTHORITY HAS CON FIRMED THE ADDITION TO THE EXTENT OF 50% OF THE TOTAL ADDITION MADE BY AO, MEANING THEREBY LD. FIRST APPELLATE AUTHORITY HAS DELETED THE ADDITION OF RS. 8,63,360/-. THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 03 DATED 0 9-02-2011 VIDE WHICH THE BOARD HAS DIRECTED ITS OFFICIALS THAT ORDER OF THE CIT(A) SHOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL, IF THE TAX EFFECT B Y VIRTUE OF ANY DELETION BY THE LD. FIRST APPELLATE AUTHORITY IS LESS THAN RS. 3 LACS. THE BOARD HAS PROVIDED CERTAIN EXCEPTIONS AT SERIAL NO. 8 OF THE INSTRUCTIONS, WHEREIN IT HAS BEEN PROVIDED THAT IRRESPECTIVE OF THE TAX EFFE CT, THE ORDER OF THE CIT(A) WOULD BE CHALLENGED BEFORE THE TRIBUNAL, IF ANY INSTRUCTIONS OR PROVISION OF THE ACT HAS BEEN STRUCK DOWN OR THERE IS AN AUDIT OBJECTION I.T.A NO.2734/AHD/2011 & CO NO 01/AHD/2012 A.Y. 2 006-07 PAGE NO ITO VS. SHREE VASUPUJAY ESTATE DEVELOPERS PVT. LTD 3 ETC. ON THE PERUSAL OF THE RECORD, IT REVEALS THA T TAX EFFECT ON DELETION AT RS. 8,63,360/- IS LESS THAN 3 LACS. LD. DR DID NOT POINT OUT THAT THE CONDITIONS ENUMERATED AT SERIAL NO. 8 OF THE INSTRU CTIONS ARE APPLICABLE ON THIS APPEAL. THEREFORE, THIS APPEAL IS BEING FILED IN VIOLATION OF THE INSTRUCTIONS OF THE BOARD AS SUCH IT IS NOT MAINTAI NABLE. THE APPEAL IS DISMISSED IN LIMINE WITHOUT ADMISSION, BEING NOT MA INTAINABLE. 5. SINCE THE APPEAL IS DISMISSED AS NOT ADMITTED, T HE ASSESSEE CANNOT FILE CROSS OBJECTION, BECAUSE NO NOTICE ON A VALID APPEAL IS DEEMED TO BE SERVED UPON THE ASSESSEE. IF ASSESSEE HAD ANY GRIE VANCE THEN HE WOULD HAVE FILED THE APPEAL AGAINST THE ORDER OF LD. CIT( A). THE CROSS OBJECTION IN THIS SITUATION IS NOT MAINTAINABLE AND DISMISSED . ACCORDINGLY, THE APPEAL AND THE CROSS OBJECTION ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.04.2015 SD/- SD/- (G.D. AGRAWAL) (RAJPAL YADAV) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD: DATED 21/04/2015 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,