DCIT CENTRAL CIRCLE 1(1), AHMEDABAD, AHMEDABAD V. NAZIR HUSAINBHAI KALIWALA, BHAVNAGAR

ITSSA 134/AHD/2023

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The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals)-11, Ahmedabad, which pertained to the Assessment Year 2020-21. The Revenue contested the CIT(A)'s decision which had restricted the addition of Rs.1,13,08,627 to Rs.80,74,324 concerning unexplained cash receipts, and deleted additions related to unexplained investments. The CIT(A)'s decisions were based on the principle of reading seized documents as a whole and granting telescopic benefit. However, the Revenue's appeal was dismissed due to the low tax effect as per the recent CBDT Circular, which applies retrospectively to all pending appeals.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29719 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 16 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 15-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 29-09-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. NAND KUMAR
• Assessee Lawyers: SARJU MEHTA
• Keywords: Unexplained investment; Document seized; Documents seized; Tax effect

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद Ɋायपीठ ‘B’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE MRS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER IT(SS)A No. 134/Ahd/2023 िनधाᭅरण वषᭅ/Assessment Year: 2020-21 DCIT, Central Circle-1(1), Ahmedabad Vs. Nazir Husainbhai Kaliwala, Plot No.474, Prabhudas Talav, Opp. Excel Guest House, Nr. Shishuvihar Circle, Bhavnagar, Gujarat-364001 PAN: AGCPK 2178 D अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : Shri Sarju Mehta, AR Revenue by : Shri V. Nand Kumar, CIT-DR सुनवाई कᳱ तारीख/Date of Hearing : 14.10.2024 घोषणा कᳱ तारीख /Date of Pronouncement: 15.10.2024 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: Present appeal has been filed by the Revenue against the order of the Commissioner of Income-tax (Appeals)-11, Ahmedabad [hereinafter referred to as \"CIT(A)\" for short] dated 07.07.2023 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for the Assessment Year (AY) 2020-21. 2. The grounds of appeal taken by the Revenue are as follows:- “a) In the facts and on the circumstances of the case, Ld. CIT A) erred in restricting the addition of Rs.1,13,08,627/- to the extent of Rs.80,74,324/- on account of payment out of unexplained cash receipts holding that it is a settled legal position that the seized documents are required to be read as a whole i.e. accepted or rejected as whole and that without having any evidence to this effect. 2 IT(SS)A No. 134/Ahd/2023 DCIT Vs. Nazir Husainbhai Kaliwala AY : 2020-21 b) In the facts and on the circumstnaces of the case, Ld. CIT(A) erred in deleting the addition of Rs.30,79,337/- and Rs.7,33,711/- towards unexplained investment holding that the assessee should be given telescopic benefit as the addition unexplained cash receipt of Rs.80,74,324/- is confirmed and that without having any evidence to this effect.” 3. At the outset itself, the learned Counsel for the assessee submitted that the appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent Central Board of Direct Taxes (CBDT) Circular No. 9 of 2024 dated 17.09.2024. 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 both the parties and perused the material available on record. We find that this appeal of the Revenue is no longer maintainable in view of the CBDT Circular No. 9 of 2024 dated 17.09.2024. The mandatory limit for cases in which Revenue can challenge the relief granted by the ld. CIT(A) now stands enhanced to Rs.60 lakhs. In this case, as agreed by the Department vide letter dated 09.10.2024, the overall tax effect is Rs.54,96,933/-, which is below the monetary limit prescribed by the CBDT vide circular No.9/2024. The concession granted by the CBDT is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and is dismissed as such. 5. It is, however, made clear that on re-verification at the end of the Assessing Officer if it comes out that the tax effect of more than Rs.60 lakhs is being involved in the appeal or the appeal falls within the exemption clause of the Circular, then the Revenue will be at liberty to file 3 IT(SS)A No. 134/Ahd/2023 DCIT Vs. Nazir Husainbhai Kaliwala AY : 2020-21 Miscellaneous Application to recall the Tribunal order. The application should be filed within time limit prescribed in the Act. 6. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the open Court on 15/10 /2024 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad; Dated 15/10/2024 **btk आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ ) अपील ( / The CIT(A)- 5. िवभागीय ᮧितिनिध , आयकर अपीलीय अिधकरण , /DR,ITAT, Ahmedabad, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Ahmedabad 1. Date of dictation …………low tax effect.. 1. Date on which the typed draft is placed before the Dictating Member :..… 14.10.2024….…… 2. Other Member…14.10.2024…….………….. 3. Date on which the approved draft comes to the Sr.P.S./P.S……14.10.2024… 4. Date on which the fair order is placed before the Dictating Member for pronouncement…15.10.2024 5. Date on which the fair order comes back to the Sr.P.S./P.S…15.10.2024…….……… 6. Date on which the file goes to the Bench Clerk…15.10.2024…….…… 7. Date on which the file goes to the Head Clerk……. 8. The date on which the file goes to the Assistant Registrar for signature on the order………… 9. Date of Despatch of the Order……………… "