ITO, Kota V. BRIJENDRA SETHI, Kota

ITA 10/JPR/2015

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1204 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 05-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MUKESH SONI DHK
• Keywords: Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 10/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2006-07. THE INCOME TAX OFFICER, WARD 1(2), KOTA. CUKE VS. SHRI RAHUL SETHI L/H SMT. BRIJENDRA SETHI 663, SHASTRI NAGAR, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AQGPS 4582 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT C.O. NO. 10/JP/2015 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 10/JP/2015) FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2006-07. SHRI RAHUL SETHI L/H SMT. BRIJENDRA SETHI 663, SHASTRI NAGAR, KOTA. CUKE VS. THE INCOME TAX OFFICER, WARD 1(2), KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AQGPS 4582 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SMT. NEENA JEPH (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MUKESH SONI (ADVOCATE) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 26.11.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 27/11/2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE REVENUE AND CROSS OBJECTION BY T HE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 20 TH OCTOBER, 2014 OF LD. CIT (A), KOTA FOR THE ASSES SMENT YEAR 2006-07. THE REVENUE HAS RAISED THE SOLITARY GROUND IN THE APPEAL AS UNDER :- 2 ITA NO. 10/JP/2015 SHRI RAHUL SETHI, L/H SMT. BRIJENDRA SETHI, KOTA. 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT (A) HAS ERRED IN :- (I) CANCELLING THE ASSESSMENT ORDER DATED 27.02.2014 PA SSED BY THE AO U/S 143(3)/147 OF THE INCOME TAX ACT, 1961, THEREBY DELETING ADDITION OF RS. 74,16,703/- MADE BY AO; (II) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITIONAL GR OUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TIME OF HE ARING. THE ADDITION MADE BY THE AO AS LONG TERM CAPITAL GA IN ON ACCOUNT OF SALE OF PLOT OF LAND WAS DELETED BY THE LD. CIT (A) AND CONSEQUENTL Y THE REVENUE HAS FILED THE PRESENT APPEAL. THE LD. D/R HAS ADMITTED THAT THE TAX EFFECT IN THE APPEAL OF THE REVENUE IS NOT EXCEEDING RS. 20 LACS, WHICH IS PRES CRIBED 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 AN D CONSEQUENTLY THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 2. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ 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 PENDING APPEALS. 3. 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 3 ITA NO. 10/JP/2015 SHRI RAHUL SETHI, L/H SMT. BRIJENDRA SETHI, KOTA. 3 EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 4. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEA L 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 PR ESSED/WITHDRAWN. CROSS OBJECTION NO. 10/JP/2015 : 5. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS STATED AT BAR THAT THE ASSESSEE DOES NOT WANT TO PRESS THE CROSS OBJEC TION ON THE GROUND THAT THE APPEAL OF THE REVENUE BEING NOT MAINTAINABLE ON ACC OUNT OF TAX LIMIT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCULAR NO. 3/2018 DAT ED 11 TH JULY, 2018 AND IS DISMISSED, THEREFORE, THE CROSS OBJECTION OF THE AS SESSEE MAY BE DISMISSED AS NOT PRESSED. ACCORDINGLY, THE CROSS OBJECTION OF THE ASSESSEE IS DISMISSED BEING NOT PRESSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AS WELL AS CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 27/11/20 18. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 27/11/2018. DAS/ 4 ITA NO. 10/JP/2015 SHRI RAHUL SETHI, L/H SMT. BRIJENDRA SETHI, KOTA. 4 VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO, WARD 1(2), KOTA. 2. THE RESPONDENT SHRI RAHUL SETHI, L/H SMT. BRIJ ENDRA SETHI, KOTA. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 10/JP/2015 & C.O. NO. 10/JP/ 2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 10/JP/2015 SHRI RAHUL SETHI, L/H SMT. BRIJENDRA SETHI, KOTA. 5