Shri Abdul Aziz Sattarbhai Dhanani, Dang V. The Income Tax Officer, Ward-1, Valsad

CO 123/AHD/2015

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 3121 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 21 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-08-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 07-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 143(3); 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI S.S. GODARA JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO.1467/AHD/2015 & CO NO. 123/AHD/2015 / A.Y. 2006-07 INCOME - TAX OFFICER, WARD-I, NAVSARI VS SHRI ABDUL AZIZ SATTARBHAI DHANANI, SATTARBHAI GANIBHAI & CO., BAZAR STREET, WAGHAI, AHWA, DIST: DANG PAN : AEYPD 4812 R (APPELLANT) (RESPONDENT & CROSS-OBJECTOR) B Y APPELLANT : SHRI OM PRAKASH PATHAK, SR DR B Y RESPONDENT : SHRI S.N. DIVATIA, AR / DATE OF HEARING : 08/08/2017 /DATE OF PRONOUNCEMENT: 28/08/2017 / O R D E R PER S.S. GODARA, JUDICIAL MEMBER THIS APPEAL BY THE REVENUE AND THE CROSS-OBJECTION THEREOF FILED BY THE ASSESSEE ARE DIRECTED AGAINST CIT(A)-VALSADS ORDER DATED 2 6.03.2015 PASSED IN CASE NO.CIT(A)/VLS/228/13-14, IN PROCEEDI NGS U/S 143(3) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT). 2. THE EFFECTIVE GROUND RAISED BY THE REVENUE IN I TS APPEAL READS AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE HONBLE CIT(A) ERRED IN DELETING THE ADDITION OF RS.12,73,4 00/- OUT OF TOTAL ADDITION OF RS.15,77,000/- MADE ON ACCOUNT OF UNEXPLAINED CA SH CREDIT U/S 68 OF THE I.T. ACT. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10 .12.2015. THE LD. ITA NO. 1467/AHD/2015 ITO VS. SHRI ABDUL AZIZ SATTARBHAI DHANANI A.Y. 2006-07 - 2 - DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR . 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LAC S. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMIS SED. 5. AS THE APPEAL FILED BY THE REVENUE ITSELF IS FOU ND TO BE NON- MAINTAINABLE AND AS THE CROSS-OBJECTION OF THE ASSE SSEE ARISES ONLY AS A RESULT OF THIS APPEAL, THE CROSS OBJECTION FILED BY THE ASSESSEE IS ALSO DISMISSED AS INFRUCTUOUS. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS-OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 28 TH AUGUST, 2017 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 28/08/2017 *BT ITA NO. 1467/AHD/2015 ITO VS. SHRI ABDUL AZIZ SATTARBHAI DHANANI A.Y. 2006-07 - 3 - !' #' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. % & / CONCERNED CIT 4. & ( ) / THE CIT(A) 5. ) % , % , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, TRUE COPY / (DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD