INCOME TAX OFFICER, BHIWADI V. SHRI DESHRAJ SAINI, ALWAR

ITA 120/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6270 (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
• Assessee Lawyers: P C PARWAL CA DHK
• 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 JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 120/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13. THE INCOME TAX OFFICER, WARD BHIWADI. CUKE VS. SHRI DESHRAJ SAINI S/O SHRI MANGTU RAM WARD NO. 3, SWAMI DAYANAND COLONY, TIJARA, DISTT. ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. DRQPS 2181 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SMT. POONAM RAI (DCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 19.07.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 24/07/2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 2 ND NOVEMBER, 2017 OF LD. CIT (A), ALWAR FOR THE ASSESSMENT YEAR 2012-13. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS :- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT (A) ERRED IN TREATING THE ADDITION OF UNEXPLAINED CASH DEPOSIT IN BANK ACCOUNT AS BUSINESS RECEIPT AND ESTIMATING NET PROF IT @ 12% ON IT, WITHOUT APPRECIATING THE FACTS OF THE CASE MENTIONE D IN THE REMAND REPORT OF THE AO. 2. THE DISPUTE IN THIS APPEAL OF THE REVENUE IS REG ARDING THE DISALLOWANCE/ADDITION OF RS. 49,65,000/- MADE BY TH E AO WHICH WAS RESTRICTED BY 2 ITA NO. 120/JP/2018 SHRI DESHRAJ SAINI, ALWAR. THE LD. CIT (A) TO RS. 5,95,800/-. THUS, ADMITTEDL Y THE TAX EFFECT ON THE RELIEF GRANTED BY THE LD. CIT (A) IS THE SUBJECT MATTER OF THE REVENUES APPEAL IS NOT EXCEEDING THE LIMIT OF RS. 20 LACS AS PER CBDT CIRC ULAR NO. 3 OF 2018. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRESCRIBED THR ESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER C IRCULAR NO. 21 OF 2015 DATED 10.12.2015. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT 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 CIRCULAR 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 EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 4. 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. 5. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEA L OF THE ASSESSEE IS NOT 3 ITA NO. 120/JP/2018 SHRI DESHRAJ SAINI, ALWAR. MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PR ESSED/WITHDRAWN. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24/07/ 2018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 24/07/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE INCOME-TAX OFFICER, WARD BHIW ADI. 2. THE RESPONDENT SHRI DESHRAJ SAINI, DISTT. ALWA R. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 120/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 120/JP/2018 SHRI DESHRAJ SAINI, ALWAR.