The DCIT, Central Circle-1, Surat V. M/s. K.K. Associates, Maharashtra

ITA 1051/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9689 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 17-11-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 14-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Keywords: Audit objection; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ITA NO. 1051/AHD/2012 ASST.YEAAR 2008-09 THE DY.CIT CENTRAL CIRCLE-1 SURAT VS M/S.K.K.ASSOCIATES S.NO.10, CITY POINTS NR.PANCHBALI KACHERI ROAD, PALGHAR, THANE MAHARASHTRA PAN: AAJFK 3016 B / (APPELLANT) / (RESPONDENT) REVENUE BY : SMT. SONIA KUMAR, SR.DR ASSESSEE BY : -NONE- / DATE OF HEARING : 21/01/2016 / DATE OF PRONOUNCEMENT: 22/01/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-II, AH MEDABAD DATED 30.03.2012 FOR ASSESSMENT YEAR 2008-09, ON THE FOLLO WING GROUNDS:- 1) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D IRECTING THE AO TO DELETE THE ADDITION OF RS.7,85,572/- MADE ON ACCOUNT OF UNEXPLAINED PURCHASES EVEN THOUGH THE ASSESSEE HAD FAILED TO PROVE THE GENUINENESS OF THE TRANSACTION. 2) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D IRECTING THE AO TO DELETE THE ADDITION OF RS.7,85,572/- MADE ON ACCOUNT OF UNEXPLAINED PURCHASES EVEN THOUGH THE ASSESSEE HAD FAILED TO PROVE THE GENUINENESS OF THE TRANSACTION EVEN AFTER THE ADDITION EVIDENCES WERE ADMITTED BY THE LD.CIT(A) U/S.46A OF THE I.T.RULES. 3) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D ELETING THE ADDITION OF RS.11,97,682/- MADE ON ACCOUNT OF UNDER VALUATION ITA NO. 1051/AHD/2012 DY.CIT VS. M/S.KK ASSOCIATES AY 2008-09 2 OF CLOSING STOCK OF WORK-IN-PROGRESS EVEN THOUGH TH E ASSESSEE HAD FAILED TO DISCHARGE THE ONUS TO PROVIDE FOR AND MAINTAIN THE CORRECTNESS, COMPLETENESS AND REGULARITY OF THE MET HOD OF ACCOUNTING STRICTLY TO THE SATISFACTION OF THE ASSE SSING OFFICER. 4) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D IRECTING THE AO TO DELETE THE ADDITION OF RS.1,02,554/- MADE ON ACCOUNT OF NON-VERIFIABLE LABOUR EXPENSES EVEN THOUGH THE SAME WERE CLAIMED WITHOUT MAINTAINING A COMPLETE ATTENDANCE R EGISTER AND WITHOUT VOUCHING THE SAME FULLY. 5) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE A. O. 6) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE C IT (A) BE SET ASIDE AND THAT OF THE A.O. BE RESTORED TO THE ABOVE EXTENT. 2. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL PLACED BEFORE ME. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW O F CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATE D 10 TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS) S ORDER IS BELOW RS.10,00,000/-, THEN THAT ORDER WOULD NOT BE CHAL LENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS, WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE , IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR AD DITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE P RESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10,00,000/-. THEREFORE, THE PRESENT APPEAL IS NO T MAINTAINABLE AND HENCE DISMISSED. ITA NO. 1051/AHD/2012 DY.CIT VS. M/S.KK ASSOCIATES AY 2008-09 3 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 22 JANUARY, 2016 A T AHMEDABAD. SD/- SD/- (ANIL CHATURVEDI) ACCOUNTANT MEMBER (KUL BHARAT) JUDICIAL MEMBER AHMEDABAD; DATED 22/01/2016 !..,.$../ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. &' / THE APPELLANT 2. ()&' / THE RESPONDENT. 3. ** + / CONCERNED CIT 4. + ( ) / THE CIT(A)-II, AHMEDABAD 5. ./0($$ , , / DR, ITAT, AHMEDABAD 6. 0123 / GUARD FILE. / BY ORDER, ).($ ///TRUE COPY// / ( DY./ASSTT.REGISTRAR) # $%&, / ITAT, AHMEDABAD 1. DATE OF DICTATION .. LOW-TAX EFFECT. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..21.1.2016 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.22.1.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 22.1.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER