DEEPAK JAIN, Alwar V. ACIT, Alwar

CO 25/JPR/2017

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 4105 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 22-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENA
• Assessee Lawyers: NARENDRA JAIN
• Keywords: Tax effect
• Section: 133A; 68

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. 422/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 THE ACIT, CIRCLE-2, ALWAR CUKE VS. SH. DEEPAK JAIN, PROP. M/S ANJALI RAKHI UDHYOG, SAXENA MOHALLA, MANNI KA BAR, ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AFAPJ 7429 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT IZR;K{KSI.K @ C.O. NO. 25/JP/2017 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 422/JP/2017) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR 2013-14 SH. DEEPAK JAIN PROP. M/S ANJALI RAKHI UDHYOG, SAXENA MOHALLA, MANNI KA BAR, ALWAR CUKE VS. THE ACIT, CIRCLE-2, ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AFAPJ 7429 P IZR;K{KSID@ OBJECTOR IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SMT ROSHANTA MEENA (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI NARENDRA JAIN 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 03/03/2017 FOR THE A.Y. 2013-14. THE GROUNDS TAKEN B Y THE REVENUE AND THE ASSESSEE ARE AS UNDER:- ITA 422/JP/2017 & C.O. 25/JP/2017_ ACIT, ALWAR VS SHRI DEEPAK JAIN, ALWAR 2 GROUNDS OF REVENUES APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, LD. CIT(A) ERRED IN RESTRICTING THE ADDITION OF RS. 57,46,980/- TO RS. 1,01,940/- WHICH WAS MADE BY THE ASSESSING OFFICER U/S 68 OF IT ACT ON A CCOUNT OF PURCHASE OF STOCK WHICH WAS FOUND EXCESS AND UNRECORDED/UNEXPLA INED, DURING THE SURVEY CONDUCTED U/S 133A OF THE IT ACT, 1961. GROUNDS OF ASSESSEES C.O.: 1. THAT LD. CIT (APPEALS), ALWAR ERRED IN SUSTAINI NG THE DISALLOWANCE OF RS. 43,588/- U/S 40A(2)(B) OF IT ACT EVEN WHEN THE INTE REST WAS PAID AT USUAL MARKET RATES AND THERE WAS NO EXCESSIVE PAYMENT OF INTEREST. 2. THAT THE APPELLANT PRAYS TO ADD OR ALTER ANY GRO UND OF APPEAL AT OR BEFORE THE TIME OF HEARING. 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 WISH T O 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 R AISED ANY OBJECTION IF THE ASSESSEE DOES NOT WANT TO PRESS THE GROUNDS OF C .O. THEREFORE, THE GROUNDS TAKEN BY THE ASSESSEE IN THE C.O. ARE DISMI SSED 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 EXCEEDING 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, TAX EFFECT I N REVENUES APPEAL IS STATED TO BE BELOW THE PRESCRIBED LIMIT OF RS 20 LAC S. ITA 422/JP/2017 & C.O. 25/JP/2017_ ACIT, ALWAR VS SHRI DEEPAK JAIN, ALWAR 3 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. 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 LACS . 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 THE 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 ITA 422/JP/2017 & C.O. 25/JP/2017_ ACIT, ALWAR VS SHRI DEEPAK JAIN, ALWAR 4 APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHDRAWN. 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 DEEPAK JAIN, 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. 422/JP/2017 & CO 25/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR