ITO, Nashik V. M/S Shree Paras Buildcon, Nashik

ITA 1177/PUN/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9152 (ITAT-PUNE)
• Duration Of Justice: 5 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 24-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 07-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NIRUPAMA KOTRU
• Keywords: Tax effect

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1177/PUN/2012 / ASSESSMENT YEAR : 2007-08 THE INCOME TAX OFFICER (CENTRAL) - I, NASHIK, 3 RD FLOOR, KENDRIYA RAJASWA BHAVAN, RAM GANESH GADKARI CHOWK, OLD AGRA ROAD, NASHIK 422002. . / APPELLANT V/S M/S. SHREE PARAS BUILDCON, PARAS COMPOUND, NEAR M.G. PETROL PUMP, SOYGAON, TAL MALEGAON, DIST. NASHIK. PAN :AAUFS4746H. . / RESPONDENT ASSESSEE BY : SHRI NIKHIL PATHAK REVENUE BY : SHRI NIRUPAMA KOTRU (CIT). / ORDER PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (A) I, NASHIK DT.29.0 3.2012 FOR THE ASSESSMENT YEAR 2007-08. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND LAW, THE LEARNED CIT(A) ERRED IN DELETING THE ADDITION OF RS .1,34,500/-, ESTIMATED AT 20% BEING REASONABLE, CONSIDERING THE MARKET TREND OF THIS BUSINESS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND LAW, THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE ASSESS EE HAS NOT MAINTAINED BOOKS OF ACCOUNT AND THE ADDITION MADE O N ACCOUNT OF ESTIMATED PROFIT @ 20% IS AFTER CONSIDERING THE INT EREST AND REMUNERATION PAID TO PARTNERS. / DATE OF HEARING : 24.07.2017 / DATE OF PRONOUNCEMENT: 26.07.2017 2 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LEARNED CIT(A), ERRED IN DELETING THE ADDITION ON A CCOUNT OF UNRECORDED RECEIPTS OF RS.30,52,900/- ON THE GROUND THAT THE ASSESSEE FIRM AND PARTNERS DISCLOSED THE SAME IN TH EIR RETURNS OF INCOME. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LEARNED CIT(A), FAILED TO APPRECIATED THAT THERE WA S NO EVIDENCE TO PROVE THAT THE ASSESSEE FIRM AND PARTNERS HAD DISCL OSED THE INCOME OF RS.30,52,900/- IN THEIR RETURNS OF INCOME AND RE NDERING THE DECISION PERVERSE BEING CONTRARY TO THE EVIDENCE ON RECORD. 3. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT AN D, THEREFORE, BE DISMISSED. THE LD. DR FAIRLY ADMITTED THAT TH E TAX EFFECT ON THE IMPUGNED ADDITIONS IS LESS THAN THE LIMIT PRESC RIBED BY THE CBDT CIRCULAR OF 10/12/2015 BEARING NO. 21 OF 2015 AN D THEREFORE THE APPEAL BE DECIDED ACCORDINGLY. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MAT ERIALS AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE OR DER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE ANN OUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10/12/2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAIN ST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST, EXCEEDS RS.10 LAKHS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY T O THE PENDING APPEALS ALSO. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUT ED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LES S THAN RS.10 LAKHS AND IN THE ABSENCE OF ANY MATERIAL PLACED ON R ECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRES ENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORESAI D CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE 3 INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICA BLE TO THE PRESENT APPEAL OF THE DEPARTMENT. WE THEREFORE HOLD THE PRESENT APPEAL OF REVENUE TO BE NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT AND ACCORDINGLY DISMISS THE APPEAL OF REVENUE WITHOU T EXPRESSING ANY OPINION ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED ON 26 TH DAY OF JULY, 2017. SD/- SD/- ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER PUNE; DATED : 26 TH JULY, 2017. YAMINI / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5. 6. CIT(A)-NASHIK. CIT, CENTRAL, NAGPUR. , , / DR, ITAT, B PUNE; / GUARD FILE. / BY ORDER , // TRUE COPY / / / SR. PRIVATE SECRETARY , / ITAT, PUNE