The ITO, Ward-11(4), Ahmedabad V. Shri Natubhai Chhaganbhai Bharwad, Ahmedabad

ITA 1432/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9834 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 19-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITI SAMANT SRDR
• Keywords: Additional evidence; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ ITA NO. 1432/AHD/2011 / ASSESSMENT YEAR: 2007-08 INCOME TAX OFFICER, WARD -11(4) AHMEDABAD .. APPELLANT VS SHRI NUTANBHAI C. BHARWAD, 211, NEW CLOTH MARKET, O/S. RAIPUR GATE, RAIPUR AHMEDABAD .. RESPONDENT PAN : ABXPB 1289 N REVENUE BY : SMT. SMITI SAMANT, SR-DR ASSESSEE(S) BY : SHRI TUSHAR HEMANI, AR / DATE OF HEARING 23/12/2015 /DATE OF PRONOUNCEMENT 06/01/2016 / O R D E R PER SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-XVI, A HMEDABAD DATED 25.03.2011 FOR ASSESSMENT YEAR 2007-08, ON THE FOLL OWING GROUNDS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.10,61,681/- MADE BY THE A.O. ON ACCO UNT OF INCOME FROM UNDISCLOSED SOURCE WITHOUT PROPERLY APP RECIATING THE FACTS OF THE CASE AND THE MATERIAL BROUGHT ON R ECORD BY THE A.O. 1.2. THE LD. CIT(A)-VI, AHMEDABAD HAS ERRED IN LAW AND O N FACTS IN NOT APPRECIATING THAT THE ASSESSEE COULD NOT FURNIS H ANY EVIDENCE/SUBSTANTIATE HIS CLAIM IN RESPECT OF AGRIC ULTURAL ITA NO. 1432/AHD/2011 ITO SHRI NUTANBHAI C. BHARWAD AY : 2007-08 2 INCOME EVEN THOUGH VARIOUS OPPORTUNITIES HAVE BEEN AFFORDED AND THUS, THE ASSESSING OFFICER HAS RIGHTLY MADE AD DITION OF RS.10,61,681/-. 1.3. THE LD. CIT(A)-XVI, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN NOT APPRECIATING THAT EVEN THOUGH VARIOUS OPPORT UNITIES HAVE BEEN PROVIDED THE ASSESSEE COULD NOT FURNISH A NY EVIDENCE/SUBSTANTIATE HIS CLAIM AND THEREFORE THE A SSESSEE HAS GOT NO RIGHT TO PRODUCE ADDITIONAL EVIDENCES BEFORE THE LD. CIT(A) DURING THE COURSE OF APPELLATE PROCEEDINGS, OTHER THAN THE EVIDENCES PRODUCED BEFORE THE ASSESSING OFFICER , WHEN THE CONDITIONS PROVIDED UNDER RULE 46A OF I.T. RULES HA VE NOT BEEN FULFILLED. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD. C IT(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE REST ORED TO THE ABOVE EXTENT. 2. BEFORE US, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.2 1 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FA IRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED B Y THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF CIT( A) IN DELETING THE ADDITION OF RS.10,61,681/- MADE BY THE ASSESSING OF FICER ON ACCOUNT OF INCOME FROM UNDISCLOSED SOURCE AND THE TAX EFFECT O F THIS APPEAL IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOA RD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO.21 OF 2015), N O DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT , EXCLUDING INTEREST ITA NO. 1432/AHD/2011 ITO SHRI NUTANBHAI C. BHARWAD AY : 2007-08 3 EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE I NSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRE SENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT THE TAX EFFECT IS LESS THAN RS .10 LACS, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INST RUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEALS OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THIS APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 6TH JANUARY 2016 A T AHMEDABAD. SD/- SD/- ANIL CHATURVEDI SHAILENDRA KU MAR YADAV (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD; DATED 06/01/2016 BIJU T., PS !'#'$ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / D R, ITAT, AHMEDABAD 6. (- . / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD