The Income Tax Officer, Muktsar V. M/S Sanman Overseas, Muktsar (Punjab)

ITA 152/ASR/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1476 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 16-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 11-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PADDAM BAHAL
• Keywords: Unexplained cash credit; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. A.D.JAIN, HONBLE JUDICIAL MEMBER AND SH. T.S. KAPOOR, HONBLE ACCOUNTANT MEMBER I.T.A NO.152(ASR)/2014 ASSESSMENT YEAR: 2009-10 THE INCOME TAX OFFICER, WARD-II(2), MUKTSAR. VS. M/S SANMAN OVERSEAS, SADARWALA ROAD, MUKTSAR. PAN:AARFSI750J (APPELLANT) (RESPONDENT) APPELLANT BY: SMT. KANCHAN GARG (DR. ) RESPONDENT BY: SH. PADDAM BAHAL (CA) DATE OF HEARING: 16.12.2015 DATE OF PRONOUNCEMENT: 16.12.2015 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY THE DEPARTMENT AGAINST T HE ORDER OF LEARNED CIT(A), BATHINDA, DATED 30.12.2013 FOR THE ASST. YE AR 2009-10. 2. THE FOLLOWING GROUNDS HAS BEEN TAKEN BY THE REVE NUE: (I). ON THE FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE FIRM AND DEL ETING THE ADDITION OF RS.18,50,000/- MADE U/S 69 OF THE INCOME TAX ACT, 1 961 IN THE HANDS OF ASSESSEE FIRM ON ACCOUNT OF UNEXPLAINED CREDITS OF THE PARTNERS IN THE BOOKS OF THE ASSESSEE FIRM. ITA NO. 152(ASR)/2014 ASST. YEAR 2009-10 2 (II) THE LD. CIT(A) HAS ALSO ERRED BY HOLDING THAT SINCE THE ISSUE OF AGRICULTURE INCOME IN THE HANDS OF INDIVIDUAL STATU S HAS NOT BEEN EXAMINED BY THE AO, THE AO MAY DO SO BY TAKING ANY REMEDIAL ACTION IN ACCORDANCE WITH THE PROVISIONS OF INCOME TAX ACT, 1 961 IN THE HANDS OF INDIVIDUAL STATUS IN THE PARTNERS SH. JAGNANDAN SIN GH HUF AND SH. VARDEV SINGH, HUF. IN VIEW OF THE THESE FACTGS, THE ORDER OF LD. CIT(A) IS PRIMA FACIE NOT TENABLE IN ACCORDANCE WITH THE FACT S OF LAW. 2. AT THE TIME OF HEARING THE LEARNED COUNSEL FOR T HE ASSESSEE RAISED A PRELIMINARY OBJECTION THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL FILE D BY THE DEPARTMENT MAY BE DISMISSED, AS THE SAME IS NOT MAINTAINABLE BEING CO NTRARY TO CBDTS INSTRUCTION NO.21 OF 2015 DATED 10.12.2015. 3. ON THE OTHER HAND, THE LD. DR RELIED UPON THE OR DER OF THE ASSESSING OFFICER. 4. AFTER HEARING BOTH THE PARTIES, IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10,00,000/-. HENCE, AS PER CBDT INSTRUCTION NO. 21 OF 2015, DATED 10 TH DEC., 2015, WHICH IS BINDING ON THE DEPARTMENT, THE DEPARTMENT IS PRECLUDED FROM FI LING THE PRESENT APPEAL, AS THIS INSTRUCTION IS APPLICABLE RETROSPEC TIVELY. THEREFORE, IN OUR CONSIDERED OPINION, THE SAID INSTRUCTION OF CBDT IS BINDING UPON THE DEPARTMENT AND THE PRESENT APPEAL HAS BEEN FILED CO NTRARY TO THE SAID INSTRUCTION ISSUED BY THE CBDT. ACCORDINGLY, THE AP PEAL FILED BY THE REVENUE IS DISMISSED, AS NOT MAINTAINABLE. ITA NO. 152(ASR)/2014 ASST. YEAR 2009-10 3 5. IN VIEW OF THE ABOVE, THE APPEAL FILED BY THE RE VENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH DECEMBER, 2015. SD/- SD/- (A.D. JAIN) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT ME MBER DATED:16.12.2015. /PK/ PS. COPY OF THE ORDER FORWARDED TO: THE ASSESSEE: THE THE CIT(A), THE CIT, THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.