ITO 21(3)(1), MUMBAI V. MR. MOHD HAI ABDULLA CHOWDHARY, MUMBAI

ITA 142/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3311 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-10-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 04-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SACHCHIDANAND DUBE
• Keywords: Retrospective amendment; Tax effect
• Section: 144

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI MAHAVIR SINGH , JM AND SHRI RAJESH KUMAR, AM ./ I.T.A. NO. 142 /MUM/ 201 3 ( / ASSESSMENT YEAR : 20 0 7 - 08 ) INCOME TAX OFFICER - 2 1 ( 3 )( 1 ) , C - 11, ROOM NO. 503 , 5 TH FLOOR, PRATYAKSHAKAR BHAVAN, BANDRA - KURLA COMPLEX, BANDRA (E), MUMBAI - 400051. / VS. SHRI MOHD HAI ABDULLA CHOWDHARY, PROP M S DIAMOND STEEL SCRAP, SHOP NO.12 INDIA BAZAR, KHARIANI ROAD, SAKI NAKA, MUMBAI - 4 00072 ./ PAN : ADYPC8628D / REVENUE BY SHRI SACHCHIDANAND DUBE / ASSESSEE BY NONE / DATE OF HEARING : 1.6. 2016 / DATE OF PRON OUNCEMENT : 1.6. 2016 / O R D E R PER RAJESH KUMAR, A. M: THIS IS AN APPEAL FILED BY THE REVENUE CHALLENGING THE ORDER DATED 10.10.2012 LD.CIT(A) 3 2 , MUMBAI , FOR ASSESSMENT YEAR 20 0 7 - 08 BY WHICH THE REVENUE IS CHALLENGING THE DELETI ON OF ADD ITION OF RS. 28,52,122 / - . 2. NONE APPEARED ON BEHALF OF THE ASSESSEE; THEREFORE, WE DECIDE THIS APPEAL EX - PARTE WITHOUT THE PRESENCE OF ASSESSEE AND AFTER HEARING THE LD.DR. 3. FROM THE FACT, WE FIND THAT THE ASSESSEE DECLARED RETURN OF INCOME AT RS.2,00, 922 ON 19.10.2007. THEREAFTER, THE AO FRAMED THE ASSESSMENT U/S 144 BY 2 3313 /MUM/ 201 4 MAKING ADDITION ON A SUNDRY CREDITOR RS.28,52,122/ - AND EXPENSES OF RS.1,30,761/ - AND ASSESSED THE INCOME AT RS.31,83,805/ - . THE FIRST APPELLATE AUTHORITY DELETED THE ADDITION OF RS.28,52,122/ - BY HOLDING THAT THERE IS NO JUSTIFICATION OF TREATING THE 30% OF CREDITORS ON ADHOC BASIS AS CEASED TO EXISTS. BEING AGGRIEVED BY THE ORDER OF LD.CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 4 . WE HAVE HEARD THE LD.DR AND PERUSED THE MATERI AL PLACED AVAILABLE BEFORE US. ON PERUSAL OF THE RECORD WE FIND THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS.10 LAKHS. RECENTLY, THE CENTRAL BOARD OF DIRECT TAXES, HAS ISSUED A CIRCULAR BEARING NO.21/2015 DATED 10.12.2015 PRESCRIBING NEW MONE TARY LIMIT OF RS.10.00 LAKHS FOR PREFERRING APPEAL AGAINST THE ORDERS PASSED BY LD CIT(A) BEFORE THE TRIBUNAL. ACCORDING TO THE ABOVE SAID CIRCULAR, THE REVENUE IS PRECLUDED FROM PURSUING THIS APPEAL, AS THE SAID CIRCULAR HAS RETROSPECTIVE EFFECT AND IS A PPLICABLE TO THE EXISTING APPEALS ALSO. WE FIND THAT THE QUANTUM IN DISPUTE IS RS. 28,52,122 / - AND THE TAX EFFECT INVOLVED THEREIN IS LESS THAN RS.10 LAKHS. T HEREFORE , FOLLOWING THE INSTRUCTION ISSUED BY CBDT , WE FIND THAT TAX EFFECT INVOLVED IN THIS APPE AL IS LESS THAN RS.10 LAKHS AND THEREFORE, THIS APPEAL IS NOT MAINTAINABLE. ACCORDINGLY, WE DISMISS THE APPEAL OF THE REVENUE BEING BELOW RS.10 LAKHS. 5 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1.6. 2016. SD SD ( MAHAVIR SINGH ) (RAJESH KUMAR) / J UDICIAL MEMBER / A CCOUNTANT MEMBER MUMBAI ; DATED : 1.6. 2016 3 3313 /MUM/ 201 4 SR.PS:SRL: / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, TRUE COPY [ / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI