Deputy Commissioner of Income-tax, V. Shri Mahesh Bhagwat Chaudhary, Jalgaon

ITA 1268/PUN/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4958 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-06-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 09-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ASHOK BABU
• Assessee Lawyers: DEVENDRA KULKARNI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 1 268 /PUN/201 6 / ASSESSMENT YEAR : 20 1 2 - 13 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 2, NASHIK ....... / APPELLANT / V/S. SHRI MAHESH BHAGWAT CHAUDHARY, 11, SWED BINDU, SHANTI NAGAR, YAWAL ROAD, BHUSAWAL, JALGAON PAN : AAQPC1999N / RESPONDENT ASSESSEE BY : SHRI DEVENDRA KULKARNI REVENUE BY : SHRI N. ASHOK BABU / DATE OF HEARING : 1 3 - 08 - 2019 / DATE OF PRONOUNCEMENT : 13 - 0 8 - 2019 / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 12, PUNE DATED 22 - 03 - 2016 FOR THE ASSESSMENT YEAR 201 2 - 13. 2. SHRI DEVENDRA KULKARNI APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO. 17/2019, DATED 08 - 08 - 2019. THE LD. AR SUBMITTED THAT THE DEPARTMENT IN 2 ITA NO .1268/PUN/2016, A.Y. 2012 - 13 A PPEAL HAS RAISED MULTIPLE GROUNDS ASSAILING THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE ADDITIONS. THE AGGREGATE OF ADDITIONS UNDER CHALLENGE IS RS.11,421,812/ - . THUS, THE TAX EFFECT ON THE TOTAL ADDITIONS IS LESS THAN RS.50 LAKH S. 3. SHRI N. ASHOK BABU REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS. 50 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL ) IN DELETING THE FOLLOWING ADDITIONS : S. NO. PARTICULARS OF ADDITION AMOUNT (RS.) 1 DISALLOWANCE OF INTEREST FOR PURCHASE OF LAND 3,60,000 2 UNDISCLOSED INTEREST ON FDR 9,000 3 UNDISCLOSED INSURANCE COMMISSION 43,00,000 4 UNDISCLOSED STOCK OF SPARE PARTS & APE TRUC K 62,73,515 5 NET PROFIT ESTIMATION 4,79,297 TOTAL 11,421,812 5. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO. 17/2019, DATED 08 - 08 - 2019 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE C IRCULAR DATED 08 - 08 - 2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO. 3 OF 2018 DATED 11 - 07 - 2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FI LING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, W ITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA) THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 3 ITA NO .1268/PUN/2016, A.Y. 2012 - 13 6. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AME NDMENT DATED 20 - 08 - 2018. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 13 TH DAY OF AUGUST, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 13 TH AUGUST, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 12, PUNE 4. THE PR. COMMISSIONER OF INCOME TAX , CENTRAL, NAGPUR 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE