The DCITNavsari Circle, Navsari V. M/s. Silk Museum, Navsari

ITA 1586/AHD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50771 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-10-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 07-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MEENA
• Assessee Lawyers: M J SHAH
• Keywords: Gross profit estimation; Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE SHRI BHAVNESH SAINI, JM AND SHRI A. L. GEHL OT, AM) ITA NO. 1586/AHD/2011 A. Y.: 2007-08 THE D. C. I. T., NAVSARI CIRCLE, NAVSARI VS M/S. SILK MUSEUM, 4/235 -1/2, MOTA BAZAR, NAVSARI PA NO. AAJSF 8580 Q (APPELLANT) (RESPONDENT) APPELLANT BY SHRI S. K. MEENA, SR. DR RESPONDENT BY SHRI M. J. SHAH, AR DATE OF HEARING: 13-10-2011 DATE OF PRONOUNCEMENT: 13-10-2011 O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A), V ALSAD DATED 17 TH JANUARY, 2011, FOR ASSESSMENT YEAR 2007-08, CHALLEN GING THE DELETION OF ADDITION OF RS.9,11,234/- MADE ON ACCOU NT OF LOW GROSS PROFIT BY REJECTING THE BOOK RESULTS. 2. THE LEARNED CIT(A) ON CONSIDERATION OF THE FACTS AND MATERIAL ON RECORD FOUND THAT THERE IS ABSOLUTELY NOTHING ON RECORD TO SHOW THAT THE GROSS PROFIT SHOWN BY THE ASSESSEE IS LESS . ACCORDINGLY, ADDITION WAS DELETED WHICH WAS MADE MAINLY ON ESTIM ATED BASIS. ITA NO.1586/AHD/2011 THE DCIT, NAVSARI VS M/S. SILK MUSEUM 2 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE TAX EFFECT ON THE GROUNDS OF APPEAL NOW RA ISED WOULD BE RS.2,81,591/-. CALCULATION OF TAX EFFECT IS FILED A ND SUBMITTED THAT SINCE DEPARTMENTAL APPEAL IS FILED ON 07-06-2011, T HEREFORE, CBDT CIRCULAR NO.3/2011 DATED 09-02-2011 WOULD APPLY THR OUGH WHICH IT WAS DIRECTED THAT APPEAL SHALL NOT BE FILED BEFORE THE TRIBUNAL WHERE THE TAX EFFECT DOES NOT EXCEED MONETARY LIMIT OF RS .3,00,000/-. HE HAS, THEREFORE, SUBMITTED THAT NO QUESTION OF LAW I S INVOLVED IN THIS CASE. THEREFORE, THE DEPARTMENTAL APPEAL IS NOT MAI NTAINABLE. THE LEARNED DR DID NOT DISPUTE THE ABOVE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF T HE VIEW THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE BECAUSE I T WAS FILED AGAINST THE CBDT CIRCULAR NO.3/2001 (SUPRA) WHICH ARE APPLI CABLE TO THE DEPARTMENTAL APPEAL FILED AFTER THE ISSUE OF THIS I NSTRUCTION. NO QUESTION OF LAW IS INVOLVED IN THE PRESENT APPEAL A ND NOTHING ADVERSE HAS BEEN BROUGHT TO OUR NOTICE. CONSIDERING THE ABO VE, THE DEPARTMENTAL APPEAL FAILS AND IS DISMISSED. 5. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT 13/10/2011. SD/- SD/- (A. L. GEHLOT) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER LAKSHMIKANT/- ITA NO.1586/AHD/2011 THE DCIT, NAVSARI VS M/S. SILK MUSEUM 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD