Shri Anirudh P. Shethi, Baroda V. The DCIT, Circle-1(2), Baroda

CO 1/AHD/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2812 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 11-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SUMIT KR VERMA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOU NTANT MEMBER & SHRI MAHAVIR PRADAD, JUDICIAL MEMBER I.T.A. NO. 345/AHD/2015 & CO NO. 01/AHD/2019 ( / ASSESSMENT YEAR: 2011-12) THE DCIT, CIRCLE- 1(2), 2 ND FLOOR, AAYKAR BHAVAN, RACE COURSE CIRCLE, BARODA / VS. SHRI ANIRUDH P. SETHI B-228, ANAND BAUG SOCIETY, MAKARPURA, BARODA ./ ./ PAN/GIR NO. : ANB PS5 743 A ( APPELLANT /RESPONDENT ) .. ( RESPONDENT /CROSS OBJECTOR ) / APPELLANT BY : SHRI SUMIT KR. VERMA, SR. DR. / RESPONDENT BY : NONE / DATE OF HEARING 27/08/2019 !'# / DATE OF PRONOUNCEMENT 03/09/2019 $%/ O R D E R PER BENCH:- THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-II, BARODA (CIT(A) IN SHORT), DATED 20. 10.2014 ARISING IN THE ASSESSMENT ORDER DATED 17.02.2014 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) IN THE ASSESSMENT YEAR 2011-12. ITA NO.345/AHD/2015 & CO. NO. 01/AHD/2019 [DCIT VS. SHRI ANIRUDH P. SETHI] A.Y. 2011-12 - 2 - 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READ S AS UNDER:- 1. WHETHER IN LAW AND ON FACTS THE ORDER OF THE L D. CIT(A) IS PERVERSE IN ALLOWING RELIEF OF RS. 1,56,86,360/- OUT OF TOTAL A DDITION AMOUNTING TO RS. 2,30,25,588/- BY RELYING ON THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. PRADEEP SHANTILAL PATEL [2014] 42 TAXMANN.COM 2(GUJ.) AND HONBLE ITAT IN THE CASE OF DINESHBHAI DHANSUKH LAL MITHAIWALA VS. ITO [2014] 49 TAXMANN.COM 583 WHEN THE RATIO OF THE DECISION OF THESE CASES IS NOT APPLICABLE TO FACTS OF THIS CASE. 1(A) WHETHER THE LD. CIT(A) HAS MISDIRECTED HIMSELF IN HOLDING THAT PROVIDING MERELY E-MAIL ID IS SUFFICIENT TO GRANT RELIEF TO T HE ASSESSEE WHEN SUCH E- MAIL ID DO NOT ESTABLISH ANY VERIFIABLE IDENTIFY AN D THEY ARE NOT RELIABLE EVIDENCES. 1(B) WHETHER THE LD. CIT(A) HAS CAST UPON A.O. AN I MPOSITION TASK OF VERIFYING THE GENUINENESS OF MORE THAN 700 E-MAIL ID BY STATI NG THAT SINCE AO HAS NOT MADE SUCH VERIFICATIONS ADDITION SHOULD BE DELETED. 1(C) WHETHER THE LD. CIT(A) HAS ERRED IN LAW IN SHI FTING THE BURDEN ON AO WHEN THE PRIMARY ONUS OF PROVIDING BASIC INFORMATION LIK E PHONE NOS./PAN AND POSTAL ADDRESSES WERE NOT PROVIDED BY THE ASSESSEE AT ANY STAGE. 1(D) WHETHER THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN IGNORING THAT IN THE NATURE OF PROFESSION OF CONSULTANCY AS ADMITTED BY THE ASSESSEE, THERE CANNOT BE ANY EXPENDITURE TO THE EXTENT OF 80% WHIC H THE LD. CIT(A) HAS ALLOWED ON PRESUMPTION BASIS. 1(E) WHETHER THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT ASSESSEE HAS DEPOSITED CASH FOR REFUND IN 790 CASES WHEN NO DETAIL OF ANY ACCOUNT WHERE SUCH DEPOSIT WAS MADE FURNISHED BEFOR E THE AO OR BEFORE THE LD. CIT(A). 2. WHETHER LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN ALLOWING THE AMOUNT OF RS. 14,94,429/- WITHOUT APPRECIATING THE FACT THAT NO EVIDENCE HAS BEEN PRODUCED BY THE ASSESSEE IN RESPECT OF EXPENDITURE CLAIMED. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 2 79/MISC/M- 93/2018-ITJ DT. 20/08/2019 HAS OBSERVED THAT CIRCUL AR NO.17/2019 DATED 08/08/2019 RELATING TO ENHANCEMENT OF MONETAR Y LIMITS IS ALSO APPLICABLE TO ALL PENDING APPEALS. AS PER AFORESAID CIRCULAR READ ITA NO.345/AHD/2015 & CO. NO. 01/AHD/2019 [DCIT VS. SHRI ANIRUDH P. SETHI] A.Y. 2011-12 - 3 - WITH INSTRUCTIONS, ALL PENDING APPEALS FILED BY REV ENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATIO N WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMI T WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 6. NOW WE TURN TO THE CROSS OBJECTION FILED ON BEHA LF OF THE ASSESSEE IN THE REVENUE APPEAL. AT THE TIME OF HEAR ING THE LD. AUTHORISED REPRESENTATIVE FOR THE ASSESSEE COULD NO T PLACE ANY SERIOUS ARGUMENT TO PERSUADE US FOR INTERFERING WIT H THE ORDER OF THE CIT(A). 7. IN THE RESULT, CROSS OBJECTION OF THE ASSESSEE I S DISMISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 03/09/2019 TANMAY TRUE COPY THIS ORDER PRONOUNCED IN OPEN COURT ON 03/09/2019 ITA NO.345/AHD/2015 & CO. NO. 01/AHD/2019 [DCIT VS. SHRI ANIRUDH P. SETHI] A.Y. 2011-12 - 4 - !' #' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. $ / ASSESSEE 3. ) *+ , / CONCERNED CIT 4. ,- / CIT (A) 5. 012 33*+, *+#, 56$)$ / DR, ITAT, AHMEDABAD 6. 289 : / GUARD FILE. BY ORDER / $% , ;/ 5 *+#, 56$)$ < 1.DATE OF DICTATION ON 27.08.2019 AS PER LOW TA X EFFECT FORMAT 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 27.08.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 03.09.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 03 .09.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 03.09.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 03.09.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER