The ACIT, Circle-3, Surat V. Shri Jashmatbhai N.Patel, Surat

ITA 1542/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9462 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-02-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 12-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Keywords: Gift; Tax effect; Onus to prove

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ITA NO. 1542/AHD/2012 ASSESSMENT YEAR :200 5 - 0 6 ACIT, CIRCLE-3, SURAT VS . SHRI JASHMATBHAI N. PATEL PROP. OF KETAN ENGINEERING SERVICES, E/2, PAYAL FLATS, OPP. BHULKA BHAVAN SCHOOL, ADAJAN ROAD, SURAT - 395009 PAN NO. ADPPP8545D (APPELLANT) .. (RESPONDENT) ! ' / BY REVENUE SMT. SONIA KUMAR, SR. D.R . ' / BY ASSESSEE NONE % ' / DATE OF HEARING 18.02.2016 &'() ' / DATE OF PRONOUNCEMENT 19 .02.2016 ( )/ ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-V, SURAT, DATED 05.03.2012 FOR A.Y. 2005-06. ITA NO.1542/AHD/10 A.Y. 205-06 (ACIT VS. SHRI JASHMATBHAI N. PATEL) 2 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER:- [1] ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A), HAS ERRED IN DELETING THE ADDITION OF RS.2,50,000/-, WITHOUT APP RECIATING THE FACT THAT THE ASSESSEE WAS NOT ABLE TO FURNISH ANY GIFT DECLARATI ON, ANY IDENTITY PROOF OF THE DONORS, BIFURCATION OF TOTAL GIFT AMOUNT AMONG TWO DONORS, COPY OF RETURN OF INCOME AND OTHER FINAL STATEMENTS OF ACCOUNT OF ALLEGED DO NORS TO PROVE GENUINENESS OF GIFT TRANSACTION. [2] ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) IN DELETING THE ADDITION OF RS.6,50,000/-, WITHOUT APPRECIATING THE FACT THAT THE ONUS TO PROVE THE IDENTITY, CREDITWORTHINESS AND THE GENUINENESS OF THE TRANSACTION LIES ON THE ASSESSEE, WHICH HE FAILED TO DO. 4. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE DELETION OF AGGREGATING AMOUNT OF RS.9,00,000/- (RS.2,50,000 + RS.6,50,000). AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 ( CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF G IVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDIN G INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL AP PLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISP UTED FACT THAT ON THE DEMAND WHICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN R S.10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRAT E THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBE D BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE T O THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPE AL IS NOT MAINTAINABLE ON ITA NO.1542/AHD/10 A.Y. 205-06 (ACIT VS. SHRI JASHMATBHAI N. PATEL) 3 ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, W E DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 19 - 02 - 2016. SD/- SD/- ( SHAILENDRA KUMAR YADAV) (ANIL CHATURV EDI) JUDICIAL MEMBER ACCOUNTANT MEMB ER AHMEDABAD: DATED. 19/02/2016 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER/ / ! ./)