The ITO, Ward-2(2), Bhavnagar V. Shri Jitendra Karsandas Desai, Bhavnagar

ITA 1181/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1671 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-05-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 30-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: M K PATEL
• Keywords: Tax effect
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: S H RI ANIL CHATURVEDI , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER THE ITO, WARD - 2(2), BHAVNAGAR (APPELLANT) VS SHRI JITENDRA KARSANDAS DESAI, PROP. SAPNA FIRE WORKS, OPP. MAHALAXMI TEMPLE, VORA BAZAR, BHAVNAGAR PAN: ABMPD4111C (RESPONDENT) REVENUE BY : S H RI V.K. SINGH, S R. D . R. ASSESSEE BY: S H RI M.K. PATEL , A.R. DATE OF HEARING : 04 - 05 - 2 016 DATE OF PRONOUNCEMENT : 06 - 05 - 2 016 / ORDER P ER : ANIL CHATURVEDI, ACCOUNT ANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 200 5 - 06 , AR ISES FROM ORDER OF THE CIT(A) - VIII , AHMEDABAD DATED 23 - 03 - 2012 IN APPEAL NO. CIT(A) - XX/680/10 - 11 , IN PROCEEDINGS UNDER SECTION 263 R.W.S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 1181 / A HD/20 12 A SSESSMENT YEAR 200 5 - 06 I.T.A NO. 1181/AHD/2012 A.Y. 2005 - 06 PAGE NO I T O VS. SHRI JITENDRA KARSANDAS DESAI 2 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER: - 1. THE LD. CIT(A) - XX, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION MADE BY THE AO TO THE EXTENT OF RS. 10,40,661/ - ON ACCOUNT OF STOCK DEFICIENCY. 1.2 FURTHE R, THE LD. CIT(A) HAS NOT APPRECIATED THE FACT THAT THERE IS NO ADDITIONAL COST ATTACHED TO SALES OUTSIDE BOOKS FROM OUT OF BOOK STOCK, THAT RESULTED IN DEFICIT STOCK DURING SURVEY. HENCE, GP ESTIMATE IS NOT APPLICABLE TO THE FACTS OF THE CASE. MOREOVER, G P IS APPLICABLE ONLY FOR UNACCOUNTED BUSINESS TRANSACTIONS TOTALLY OUTSIDE REGULAR BOOKS. 3. ON PERUSING THE GROUND OF APPEAL RAISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE DELETION OF ADDITION OF RS. 10,40,661 / - AS PER THE ANNOUNCE MENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 ( CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY ID. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 1 0 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE DEMAND WHICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN RS.10 LACS AND IN THE ABSENCE OF ANY MAT ERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCUL AR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON AMOUNT OF LOW TAX EFFECT. IN I.T.A NO. 1181/AHD/2012 A.Y. 2005 - 06 PAGE NO I T O VS. SHRI JITENDRA KARSANDAS DESAI 3 SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 06 - 05 - 201 6 SD/ - SD/ - ( S. S. GODARA ) ( ANIL CHATURVEDI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 06 /05 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,