The ACIT,Valsad Circle, Valsad V. Shri Riyaz Jainuddin Shaikh, Valsad

ITA 1179/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9320 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-02-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 30-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGID
• Keywords: Unexplained cash credit; Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.1179/AHD/2012 ( / ASSESSMENT YEAR : 2002-03) THE ASSTT.CIT VALSAD CIRCLE VALSAD / VS. SHRI RIYAZ J.SHAIKH RASHI APARTMENT 1 ST FLOOR, MISSION COLONY VALSAD ./ ./ PAN/GIR NO. : AZPLS 1115 Q ( ' / APPELLANT ) .. ( #' / RESPONDENT ) ' $ / APPELLANT BY : SHRI J.P. JANGID, SR.DR #' % $ / RESPONDENT BY : -NONE- (WRITTEN SUBMISSION) &'( % ) / DATE OF HEARING 10/02/2016 *+, % ) / DATE OF PRONOUNCEMENT 16/02/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-VALSAD [CIT(A) IN SHORT] DATED 29/02/2012 PERTAINING TO ASSESSMENT YEAR (AY) 2002-03. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW WHETHER THE LD.CIT(A) IS JUSTIFIED IN GIVING RELIEF TO THE ASSE SSEE, ON THE FACTS OF AUDIT REPORT WHICH IS ITSELF BEING NOT CORRECT IN T OTALITY. ITA NO.1179 /AH D/2012 ACIT VS. SHRI RIYAZ J. SHAIKH ASST.YEAR 2002-03 - 2 - 2. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW W HETHER THE LD.CIT(A) IS JUSTIFIED IN GIVING RELIEF BY ARRIVING AT THE NUMBER OF MEMBERS AT 484, WHEREAS THE NUMBER OF MEMBER WERE M ORE THAN 626 MEMBERS AS PER THE INFORMATION IN THE REGISTERS PROVIDED BY THE POLICE AUTHORITIES. 3. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW W HETHER THE LD.CIT(A) IS JUSTIFIED IN GIVING RELIEF ON ACCOUNT OF UNEXPLAINED CASH CREDIT, IN THE ABSENCE OF ANY NEXUS OR CASH FL OW SUPPORTING THAT THE RECEIPTS OF MEMBERS, ARE THE SAME, WHICH HAVE B EEN DEPOSITED IN BANK ACCOUNT. 4. IT IS PRAYED THAT THE ORDER OF THE CIT(A) MAY BE SE T-ASIDE AND THAT THE ORDER OF THE A.O. MAY BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR DELETE ANY GROUND(S) EITHER BEFORE OR IN THE COURSE OF HEARING OF THE AP PEAL. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASS ESSEE SUBMITTED THROUGH WRITTEN SUBMISSION DATED 08/02/2016 THAT AS PER CEN TRAL BOARD OF DIRECT TAXES CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/20 07-ITJ (PT) DATED 10TH DECEMBER 2015, THE REVISED LIMIT FOR PREFERRIN G REVENUE'S APPEALS IS RS. 10 LACS. HE SUBMITTED THAT THE TAX EFFECT IN T HE PRESENT REVENUE'S APPEAL IS RS.7,22,491/- WHICH IS BELOW THE PRESCRIB ED LIMIT OF RS.10 LACS. HE HAS ALSO SUBMITTED A WORKING OF THE TAX EFFECT. HE, THEREFORE, PLEADED THAT IN VIEW OF THE CBDT CIRCULAR, THE REVENUE'S AP PEAL MAY BE DISMISSED AS THE TAX EFFECT BEING BELOW THE PRESCRI BED LIMIT. 3. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR THE AS SESSEE. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ ITA NO.1179 /AH D/2012 ACIT VS. SHRI RIYAZ J. SHAIKH ASST.YEAR 2002-03 - 3 - (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BE EN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INC OME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD H AS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOE S NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS. 10 LA KHS. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS NOT MAINTAINABLE A ND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON TUESDAY, THE 16 TH DAY OF FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( PRAMOD KUMAR ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 16/ 02 /2016 0)..& , '.&../ T.C. NAIR, SR. PS ITA NO.1179 /AH D/2012 ACIT VS. SHRI RIYAZ J. SHAIKH ASST.YEAR 2002-03 - 4 - !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 123 4 / CONCERNED CIT 4. 4 ( ) / THE CIT(A)-VALSAD 5. 5'6 &23 , ) 23 , , 1 / DR, ITAT, AHMEDABAD 6. 689 :( / GUARD FILE. / BY ORDER, #5 //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 10.2.16 (COPIED MATTER OF TA X EFFECT BELOW 10 LACS) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .. 11.2.16 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.16.2.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 16.2.16 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