Shri Ashok Kumar, Delhi V. ACIT, New Delhi

CO 131/DEL/2010

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 6855 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 23-01-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 23-01-2012
• Assessment Year: 1992-1993
• Appeal Filed On: 01-06-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA
• Assessee Lawyers: K C PAHUJA
• Keywords: Gift; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER ITA NO.1050/DEL/2010 ASSESSMENT YEAR : 1992-93 ACIT, CIRCLE 19 (1), ROOM NO.301-G, VIKAS BHAWAN, IP ESTATE, NEW DELHI. VS. ASHOK KUMAR, 101/10, WAZIRPUR INDL. AREA, DELHI. CO NO.131/DEL/2010 (ITA NO.1050/DEL/2010) ASSESSMENT YEAR : 1992-93 ASHOK KUMAR, 101/10, WAZIRPUR INDL. AREA, DELHI. VS. ACIT, CIRCLE 19 (1), ROOM NO.301-G, VIKAS BHAWAN, IP ESTATE, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI K.C. PAHUJA, ADVOCATE REVENUE BY : MS ANUSHA KHURANA, SR.DR ORDER PER BENCH: THE APPEAL IS FILED BY THE REVENUE AND THE CROSS OBJE CTIONS BY THE ASSESSEE. THE REVENUE IN ITS APPEAL IS CONTESTING THE DELETION OF ADDITION OF ` 5,36,000/- MADE ON ACCOUNT OF UNEXPLA INED GIFTS RECEIVED BY THE ASSESSEE. THE ASSESSEE IN HIS CROSS OBJECTIONS IS SUPPORT ING THE DELETION ON THE GROUND THAT WHILE MAKING THE ADDITI ON THE ASSESSING OFFICER DID NOT FOLLOW THE DIRECTIONS GIVEN BY ITAT WHILE SETTING ASIDE THE MATTER BEFORE HIM. ITA NO.1050/DEL/2010 CO NO.131/DEL/2010 2 2. THE PRESENT APPEAL OF THE REVENUE WAS CONSIDERED IN THE LIGHT OF THE RECENT DECISION OF HONBLE HIGH COURT ACCORDING TO WHICH THE TAX EFFECT LIMIT WILL BE APPLICABLE TO THE PENDING APPE ALS AND IT WAS SEEN THAT THE TAX EFFECT IN THE PRESENT APPEAL IS LESS THAN ` 3 LAC. REFERENCE CAN BE MADE TO THE FOLLOWING DECISIONS OF THE JURISDIC TIONAL HIGH COURT: (I) CIT VS. M/S P.S. JAIN & CO. IN ITA NO.179/1991, O RDER DATED 2 ND AUGUST, 2010. (II) CIT VS. DELHI RACE CLUB IN ITA NO.128/2008 , OR DER DATED 3 RD MARCH, 2011. 3. THE CALCULATION OF TAX EFFECT HAS BEEN GIVEN AS BE LOW:- ASSESSED INCOME - ` 6,14,300 TAX CALCULATED BY THE A.O. ON THE SAID INCOME - ` 2 ,84,760/- TAX ON RETURNED INCOME - ` 18,920/- BALANCE TAX - ` 2,65,840/- SURCHARGE @ 12% - ` 31,901/- TOTAL TAX EFFECT - ` 2,97,741/- 4. AS THE TAX EFFECT IS LESS THAN ` 3 LAC, WE DISMISS THE DEPARTMENTAL APPEAL ON THE GROUND OF LOW TAX EFFECT REFERRING TO THE AFOREMENTIONED DECISION OF HONBLE JURISDICTIONAL HIGH COURT. 5. SO FAR AS IT RELATES TO THE CROSS OBJECTION FILED BY THE ASSESSEE, THAT IS MERELY SUPPORTING THE ORDER OF THE CIT (A) AN D AS THE APPEAL FILED BY THE REVENUE HAS BEEN DISMISSED, THE DECISION ON THE CROSS OBJECTION FILED BY THE ASSESSEE WILL BE ACADEMIC. THER EFORE, THE CO FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND THE SAME IS DISMISSED. ITA NO.1050/DEL/2010 CO NO.131/DEL/2010 3 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT AND THE CROSS OBJECTIONS FIL ED BY THE ASSESSEE IS DISMISSED HAVING BECOME ACADEMIC AND INFRUCTUOU S. THE ORDER PRONOUNCED IN THE OPEN COURT ON 23.01.20 12. SD/- SD/- [K.G. BANSAL] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 23.01.2012. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES