DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, LUDHIANA , LUDHIANA V. BINDER SINGH , BATHINDA

ITA 243/CHANDI/2024

AI Insights

The case involves an appeal by the Revenue against the Assessee, Binder Singh, concerning the taxation of a surrendered building amount of Rs. 50,00,000 under section 69 read with section 115BBE of the Income Tax Act, 1961, for the Assessment Year 2018-19. The Assessee also filed a Cross Objection against the order of the Ld. CIT(A)-5, Ludhiana, which confirmed the Assessing Officer's action. The Revenue's appeal was dismissed due to the low tax effect as per CBDT guidelines, and the Assessee's Cross Objection was dismissed to allow for a separate substantive appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39011 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: RUPINDER KANSAL
• Keywords: Tax effect; Deemed to accrue or arise in india

Judgement Text

" आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “ए” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: HYBRID MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी क ृणवȶ सहाय, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA No. 243 /Chd/ 2024 िनधाŊरण वषŊ / Assessment Year : 2018-19 The DCIT Central Circle-1, Ludhiana बनाम Binder Singh Prop. M/s K.S. Bhai Ke Engineering Works Baghapurana Road, Vill: Bhagta Bhaika, Bathinda-151026, Punjab ˕ायी लेखा सं./PAN NO: BFOPS8062l अपीलाथŎ/Appellant ŮȑथŎ/Respondent Cross Objection No. 15/Chd/2024 In आयकर अपील सं./ ITA No. 243 /Chd/ 2024 िनधाŊरण वषŊ / Assessment Year : 2018-19 Binder Singh Prop. M/s K.S. Bhai Ke Engineering Works Baghapurana Road, Vill: Bhagta Bhaika, Bathinda-151026, Punjab बनाम The DCIT Central Circle-1, Ludhiana ˕ायी लेखा सं./PAN NO: BFOPS8062l अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Rupinder Kansal, Advocate and Shri Vipin Gupta, C.A राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 25/03/2025 उदघोषणा की तारीख/Date of Pronouncement : 27/03/2025 आदेश/Order PER LALIET KUMAR, J.M: The present appeal has been filed by the Revenueand the Cross Objection filed by the Assessee against the order of the Ld. CIT(A)-5, Ludhiana dt. 05/01/2024 pertaining to Assessment Year 2018-19. 2 2. At the outset the Ld. AR had pointed out that the tax effect in this appeal of the Revenue is below Rs. 60,00,000/- and our reference was drawn to the Form No. 36 filed by the Revenue with the tax effect has been mentioned at Rs. 50,05,800. It was submitted that on account of the CBDT Circular No.09/2024 dated 17.09.2024 the appeal of the Revenue is required to be dismissed. 2.1 Ld. DR had not disputed the tax effect in the matter. 2.2 In view of the fact that the tax effect in the appeal of the Revenue is below the threshold limit prescribed by the CBDT. We dismiss the appeal of the Revenue. 3. The Ld AR has submitted that the assessee has also preferred a Cross Objection against the order passed by the Ld. CIT(A) on the following grounds: 1. That the Ld. CIT(A)-5, Ludhiana has erred in the eyes of law as well on the facts in in confirming the action of the Assessing Officer in taxing the surrender on account of building amount of Rs. 50,00,000/- u/s 69 read with section 115BBE of the Income Tax Act, 1961. 2. That the Ld. CIT (A) has failed to appreciate the various judgments of the Jurisdictional Bench of the ITAT, Chandigarh Bench in many cases, where the amount offered during survey under similar circumstances have been taxed at the normal rate of tax. 3. That the Ld. CIT(A) has failed to appreciate that during the course of survey, no other income was noticed by the department and, as such, taxing the amount offered as deemed income, is against the facts and circumstances of the case. 4. That the respondent craves leave to add or amend any grounds of appeal before the appeal is finally heard or disposed off. It was submitted that the permission to withdraw the Cross Objection may kindly be consider, as the assessee is contemplating, to file a substantive appeal alongwith the application for condonation of the delay. 4. The Ld. DR has no objection for withdrawing the Cross Objection. 5. We have heard the rival contention and perused the material available on the record. In the present case the C.O has been preferred by the assessee in the appeal preferred by the Revenue, on the grounds raised therein. In our respectful understanding grounds urged by the assessee are required to be urged by way of separate appeal, and not by way of a Cross Objection. In view of the above we 3 deem it appropriate to grant the liberty to the assessee to withdraw the cross objection. The assessee may prefer the substantive appeal against the order of the Ld. CIT(A) in accordance with law. Needless to say alongwith the appeal the assessee may filed the condonation application, which may be considered by the Bench sympathetically considering the withdrawal of the cross objection by the assessee, on its own merits, and in accordance with law. 6. In light of the above the Cross Objection filed by the Assessee is dismissed. 7. In the result, appeal filed by the Revenue and Cross Objection filed by the Assessee stand dismissed. Order pronounced in the open Court on 27/03/2025 Sd/- Sd/- क ृणवȶ सहाय लिलत क ुमार (KRINWANT SAHAY) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "