INCOME TAX OFFICER, BHIWADI V. SHRI MANGTU RAM , ALWAR

ITA 119/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6266 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 01-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI
• Keywords: Business income; Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 119/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2012-13 THE INCOME TAX OFFICER, WARD -BHIWADI CUKE VS. SHRI MANGTU RAM, S/O- SHRI KISHAN LAL, WAND NO.3, SWAMI DAYANAND COLONY, TIJARA, DISTRICT- ALWAR. LFKK;H YS[KK LA - @THVKBZVKJ LA - @ PAN/GIR NO.: BZEPR 8681 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SMT. POONAM RAI (DCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI P.C. PARWAL. LQUOKBZ DH RKJH[ K@ DATE OF HEARING: 19/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 24/07/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 02/11/2017 OF THE LD .CIT (A), AJMER FOR THE ASSESS MENT YEAR 2012-13. THE REVENUE HAS RAISED SOLE GROUND OF APPEAL, WHICH IS REPRODUCED AS UNDER:- 1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN TREATING THE ADDITION OF UNEXPLAINE D CASH DEPOSIT IN BANK ACCOUNT AS BUSINESS RECEIPT AND ESTIMATING NET PROFIT @ 12% ON IT, WITHOUT APPRECIATING THE FACTS OF THE CA SE MENTIONED IN THE REMAND REPORT OF THE A.O. 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS RAISED AN OBJECTION OF MAINTAINABILITY OF THE APPEAL OF THE R EVENUE DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO . 3 OF 2018 DATED 11 TH JULY, 2 ITA NO. 119/JP/2018 ITO VS. MANGTU RAM 2018. THE LD. A/R SUBMITTED THAT IN THE FACTS OF T HE PRESENT CASE, TAX EFFECT IN REVENUES APPEAL IS STATED TO BE BELOW THE PRESCRIB ED LIMIT OF RS 20 LACS. 3. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EF FECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRES CRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFE CT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIR CULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFEC T DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY ME NTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 5. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 6. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUT E IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE A PPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCUL AR NO. 3 OF 2018 DATED 3 ITA NO. 119/JP/2018 ITO VS. MANGTU RAM 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMEN T IS DISMISSED AS NOT PRESSED/WITHDRAWN. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24/07/2018 . SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 24 TH JULY, 2018 * RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD- BHIWADI. 2. IZR;FKHZ@ THE RESPONDENT- SHRI MANGTU RAM, TIJARA, DISTT.- AL WAR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K]T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 119/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR