THE INCOME TAX OFFICER-3, BHILAI(CG) V. SHRI PRAVEEN KUMAR SHRISHRIMAL, Durg

ITA 116/BIL/2011

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1083 (ITAT-RAIPUR)
• Duration Of Justice: 4 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 06-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEETAL S VERMA
• Assessee Lawyers: R B DOSHI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI MUKUL K. SHRAWAT , JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER IT A NO.116 / BLPR./2011 ( ASSESSMENT YEAR : 20 06 0 7 ) INCOME TAX OFFICER - 3 AAYAKAR BHAVAN , BHILAI APPEL LANT V/S SHRI PRAVEEN KUMAR SHRISHRIMAL M/S. PRAVEEN JEWELLERS JAWAHAR CHOWK, DURG PAN AAPHJ1541G .... RESPONDENT REVENUE BY : SMT. SHEETAL S. VERMA ASSESSEE BY : SHRI R.B. DOSHI DATE OF HEARING 10 .06.2015 DATE OF ORDER 10 .06.2015 O R D E R PER SHAMIM YAH YA, A. M. T HIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 24 TH JANUARY 2011 , PASSED BY THE LEARNED CIT(A), BILASPUR , FOR THE ASSESSMENT YEAR 20 06 07 . THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. WHETHER IN LAW AND ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION SHRI PRAVEEN KUMAR SHRISHRIMAL 2 OF ` 6,88,669, MADE BY THE A.O. ON ACCOUNT OF UNDER VALUATION OF CLOSING STOCK OF GOLD WHEN THE CLOSING STOCK WAS TAKEN BY THE A SSESSEE AT COST BASIS AS PER BOOKS OF ACCOUNT . 2. WHETHER IN LAW AND ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF ` 1,68,268, MADE BY THE A.O. ON ACCOUNT OF UNDER VALUATION OF CLOSING STOC K OF SILVER WHEN THE CLOSING STOCK WAS TAKEN BY THE ASSESSEE AT COST BASIS AS PER BOOKS OF ACCOUNT. 3. WHETHER IN LAW AND ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWANCE OF ` 17,880 MADE BY THE A.O. ON ACCOUNT OF SHORTAGE WHEN THE ASSESSEE DID NOT MAINTAIN DAY TO DAY DETAILS OR SEPARATE RECORD FOR MELTING AND PURIFICATION OF GOLD AND SILVER . 4. WHETHER THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF ` 33,598, MADE BY THE A.O. ON ACCOUNT OF UNDER STATED LABOUR CHARGES WHEN THE ASSESSEE HAS CLAIMED ` 8,925 UNDER THE HEAD DIRECT COST WHEREAS IN THE WRITTEN SUBMISSION THE CLAIM OF LABOUR CHARGES WAS ` 42,523 . 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE DOES NOT EXCEED ` 3,00,000. THE LEARNED COUNSELS SUBMISSION IN THIS REGARD IS AS UNDER: IN VIEW OF CBDT INSTRUCTION NO.3/2011 DT. 09.02.2011, THE APPEAL BEFORE APPELLATE TRIBUNAL SHALL NOT BE FILED BY DEPARTMENT UNLESS THE TAX E FFECT EXCEEDS ` 3,00,000. COPY ENCLOSED. THE DEPARTMENT HAS FILED APPEAL AFTER 23.05.2011 I.E., AFTER ISSUE OF CBDT INSTRUCTION . IN VIEW OF DECISION OF JURISDICTIONAL HIGH COURT OF CHHATTISGARH IN CASE OF ITO 2(1) V/S HIRA STEEL LTD., RAIPUR, ITA NO.10 OF 2005 HAS HELD THAT THE APPEALS WHICH HAS TAX EFFECT NOT MORE THAN THE PRESCRIBED LIMIT IS TO BE DISMISSED WITHOUT GOING INTO THE MERITS. JURISDICTIONAL HIGH COURT OF CHHATTISGARH HAS ALSO HELD IN CASE OF CIT V/S ANAND ROADWAYS RAJNANDGAON, INCOME TAX REFE RENCE NO.97 OF 1997 DATED 30.01.2004, HAS HELD THAT TRIBUNAL WAS JUSTIFIED IN LAW IN DISMISSING THE DEPARTMENTAL APPEAL AS SHRI PRAVEEN KUMAR SHRISHRIMAL 3 INCOMPETENT AS PER BOARD CIRCULAR DATED 18.11.1992 WITHOUT DECIDING THE CASE ON MERITS . 3. UPON CAREFUL CONSIDERATION AND HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE, WE FIND THAT THE TAX EFFECT IN THIS CASE IS BELOW THE MONETARY LIMIT FIXED BY THE CBDT FOR FILING THE APPEAL BEFORE THE TRIBUNAL. AS SUCH, THE APPEAL IS LIABLE TO BE DISMISSED AS NON MAINTAINABLE. THIS VIEW IS ALSO SUPP ORTED BY THE HONBLE JURISDICTIONAL HIGH COURTS DECISION CITED SUPRA. 4. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT O N 10 TH JUNE 2015 SD/ - MUKUL K. SHRAWAT JUDICIAL MEMBER SD/ - SHAMIM YAHYA ACCOUNTANT MEMBER RAI PUR , DATED : 10 TH JUNE 2015 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE ; (2) THE REVENUE; (3) THE CIT(A ) ; (4) THE CIT, BILASPUR CITY CONCERNED ; (5) THE DR, ITAT, RAIPUR ; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETAR Y SR. PRIVATE SECRETARY / A SS ISTANT REGISTRAR ITAT, RAIPUR