SHRI SUBHASH CHAND GUPTA, Jaipur V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, Alwar

CO 23/JPR/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 4104 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 26-06-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J S KULHARI
• Assessee Lawyers: S L PODDAR
• Keywords: Tax effect
• Section: 194C

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 559/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2014-15 THE ACIT, CIRCLE-2, ALWAR CUKE VS. SHRI SUBHASH GOYAL, NEW BUS STAND, INDUSTRIAL AREA, SHAHPURA, DISTT. JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABQPG 5724 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT IZR;K{KSI.K @ C.O. NO. 23/JP/2018 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 559/JP/2018) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR 2014-15 SHRI SUBHASH GOYAL, NEW BUS STAND, INDUSTRIAL AREA, SHAHPURA, DISTT. JAIPUR CUKE VS. THE ACIT, CIRCLE-2, ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABQPG5724L IZR;K{KSID@ OBJECTOR IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI J. S. KULHARI (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI S. L. PODDAR (ADV.) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 24/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 28/08/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, JM: THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJEC TION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), ALWAR DATED ITA 559/JP/2018 & C.O. 23/JP/2018_ ACIT, ALWAR VS SHRI SUBHASH GOYAL, JAIPUR 2 01/02/2018 FOR THE A.Y. 2014-15. THE GROUNDS TAKEN B Y THE REVENUE AND THE ASSESSEE ARE AS UNDER:- GROUNDS OF REVENUES APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 20,37,465/- MADE BY TH E AO ON ACCOUNT OF COMMISSION PAYMENT TO NRI WITHOUT APPRECIATING THE MATERIAL FACTS OF THE CASE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW LD. CIT(A) HAS ERRED IN RESTRICTING THE DISALLOWANCE OF 11,97,636/ - TO RS. 1,19,763/- MADE BY AO ON ACCOUNT OF PACKING LABOUR AND PACKING MATERIAL EXPENSES WITHOUT APPRECIATING THE MATERIAL FACTS OF THE CASE. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS. 53,269/- MADE BY THE AO ON ACCOUNT OF INTEREST PAYMENT U/S 40(A)(IA) R.W.S. 19 4A OF THE IT ACT 1961. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW LD. CIT(A) HAS ERRED IN REDUCING THE DISALLOWANCE OF RS. 6,70,000/ - TO RS. 67,000/- MADE BY THE AO U/S 40(A)(IA) R.W.S 194C OF THE IT A CT 1961. GROUNDS OF ASSESSEES C.O.: 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE THE LEARNED CIT(A) HAS ERRED CONFIRMING THE ADDITION OF RS. 1,19,763/- ON ACCOUNT OF PACKING LABOUR EXPENSES AND PACKING MATERIAL EXPENS ES. 2. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CA SE THE LEARNED CIT(A) HAS ERRED CONFIRMING THE DISALLOWANCE OF EXCESS DEP RECIATION CLAIMED FOR MORE THAN 180 DAYS FOR RS. 3,75,000/- 3. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CA SE THE LEARNED CIT(A) HAS ERRED CONFIRMING THE DISALLOWANCE OF RS. 67,000 /- ON ACCOUNT OF MINING LABOUR EXPENSES WITHOUT CONSIDERING THE SUBM ISSION OF THE ASSESSEE. 4. THE ASSESSEE CRAVES YOUR INDULGENCE TO ADD AMEND OR ALTER ALL OR ANY GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. ITA 559/JP/2018 & C.O. 23/JP/2018_ ACIT, ALWAR VS SHRI SUBHASH GOYAL, JAIPUR 3 2. FIRSTLY WE TAKE C.O. OF THE ASSESSEE. AT THE OUTS ET OF HEARING, THE LD AR OF THE ASSESSEE HAS STATED THAT HE DOESNT WIS H TO PRESS THE GROUNDS SO TAKEN IN THE CROSS OBJECTION THEREFORE, THE SAME MAY BE DISMISSED AS NOT PRESSED. ON THE OTHER HAND, THE LD DR HAS NOT RAISED ANY OBJECTION IF THE ASSESSEE DOES NOT WANT TO PRES S THE GROUNDS OF C.O. THEREFORE, THE GROUNDS TAKEN BY THE ASSESSEE IN THE C.O. ARE DISMISSED BEING NOT PRESSED. 3. NOW WE TAKE THE REVENUES APPEAL. AT THE TIME OF H EARING, THE LD. AR OF THE ASSESSEE HAS RAISED AN OBJECTION OF MAINT AINABILITY OF THE APPEAL OF THE REVENUE DUE TO THE TAX EFFECT NOT EXC EEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO. 3 OF 2018 DATED 11 TH JULY, 2018. THE LD. A/R SUBMITTED THAT IN THE FACTS OF THE PRESENT CASE, TA X EFFECT IN REVENUES APPEAL IS STATED TO BE RS. 18,56,700/- WHICH IS BEL OW THE PRESCRIBED LIMIT OF RS 20 LACS. 4. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFF ECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRESC RIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. ITA 559/JP/2018 & C.O. 23/JP/2018_ ACIT, ALWAR VS SHRI SUBHASH GOYAL, JAIPUR 4 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAN D/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LAC S . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PEN DING APPEALS. 6. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE TH E DEMAND/TAX EFFECT IS NOT EXCEEDING THAN 20 LACS SHOULD BE EITH ER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 7. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPTI ONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DIS PUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CB DT FOR THE APPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN V IEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APP EAL OF THE DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHDRAWN. ITA 559/JP/2018 & C.O. 23/JP/2018_ ACIT, ALWAR VS SHRI SUBHASH GOYAL, JAIPUR 5 8. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE AN D THE C.O. OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/08/2018. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 28/08/2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE-2, ALWAR 2. IZR;FKHZ@ THE RESPONDENT- SHRI SUBHASH GOYAL, JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 559/JP/2018 & CO 23/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR