M/s. VMS Industries Ltd., Bhavnagar V. The ACIT.,(OSD)Circle-8, Ahmedabad

CO 169/AHD/2012

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2312 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-04-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 25-02-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 04-10-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Keywords: Income from undisclosed sources; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA K. YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO. 1672/AHD/2012& CO NO.169/AHD/2012 / ASSESSMENT YEAR: 2004-05 ASST. COMMISSIONER OF INCOME-TAX(OSD), CIRCLE-8, AHMEDABAD .. APPELLANT VS M/S. VMS INDUSTRIES LIMITED, 2 ND FLOOR, JAIN MANDIR, OPP. VITTHALWADI, BHAVNAGAR .. RESPONDENT & PAN : AABCV 7307 H CROSS-OBJECTOR REVENUE BY : SMT. SONIA KUMAR, SR. DR. ASSESSEE(S) BY : SHRI KARAN SHAH, AR / DATE OF HEARING 25/02/2016 /DATE OF PRONOUNCEMENT 05/04/2016 / O R D E R PER SHAILENDRA K. YADAV, JUDICIAL MEMBER: THIS APPEAL BY THE REVENUE AND CROSS-OBJECTION THER EOF FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-XVI, AHMEDABAD DATED 22.05.201 2 FOR ASSESSMENT YEAR 2004-05. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL:- 1) THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, AHMEDABAD ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION MADE OF RS.14,00,000/- ON ACCOUNT OF SHARE APPLICAT ION MONEY RECEIVED BY TREATING THE SAME AS UNACCOUNTED INCOME . 2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. ITA NO. 1672/AHD/2012 & CO NO.169/AHD/2012 MVMS INDUSTRIES LTD AY : 2004-05 2 3) IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD. C IT(A) MAY BE SET ASIDE AND THAT OF THE ORDER OF THE ASSESSING OF FICER BE RESTORED. 2. BEFORE US, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT HE IS NOT PRESSING THE CROSS-OBJECTION; HENCE THE CROSS-OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS NOT PRESSED. 3. WITH REGARD TO REVENUES PRESENT APPEAL, THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE SAME NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.2 1 OF 2015 DATED 10.12.2015. HE HAS ALSO SUBMITTED THAT IN THE PRES ENT CASE THE TAX EFFECT IS RS.5,02,250/- WHICH IS BELOW THE PRESCRIBED LIMIT O F RS.10 LACS AND HE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED B Y THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF CIT( A) IN DELETING THE ADDITION OF RS.14,00,000/-, WHICH MADE BY THE ASSES SING OFFICER ON ACCOUNT OF SHARE APPLICATION MONEY RECEIVED BY TREA TING THE SAME AS UNACCOUNTED INCOME; AND THE TAX EFFECT OF THE SAME IS BELOW RS.10 LACS WHICH IS EVIDENT FROM WORKING SUBMITTED BY THE LD. AUTHORIZED REPRESENTATIVE. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO.21 OF 20 15), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT , EXCLUDING INTEREST EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE I NSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRE SENT CASE, SINCE IT IS AN ITA NO. 1672/AHD/2012 & CO NO.169/AHD/2012 MVMS INDUSTRIES LTD AY : 2004-05 3 UNDISPUTED FACT THAT THE TAX EFFECT IS LESS THAN RS .10 LACS, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INST RUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THIS APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS-OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 5 TH OF APRIL 2016 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANT MEMBER (SHAILENDRA K. YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 05/04/2016 BIJU T., PS !' #'$ / 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