The ITO, Ward-2(3), Bhavnagar V. Shri Chetan Bipinchandra Shah, Botad

ITA 1654/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1908 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 31-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Keywords: Unexplained cash credit; Tax effect
• Section: 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO. 1654/AHD/2012 / ASSESSMENT YEAR: 2008-09 INCOME TAX OFFICER, WARD-2(3), BHAVNAGAR VS. CHETAN BIPINCHANDRA SHAH, PROP. OF CHETAN TRADING CO. MARKETING YARD, PALIYAD ROAD, BOTAD PAN : AHUPS 0757 P [ / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI NARENDRA SINGH, SR. DR. ASSESSEE BY : NONE !'# / DATE OF HEARING : 09/03/2016 / DATE OF PRONOUNCEMENT: 01/04/2016 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-XX, AHMEDA BAD, DATED 11.05.2012 FOR ASSESSMENT YEAR 2008-09, ON THE FOLL OWING GROUNDS:- 1. THE LD. CIT(A)-XX, AHMEDABAD HAS ERRED IN LAW AND O N FACTS IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED CASH CREDITS U/S 68 OF THE I.T. ACT. 1.2 THE LD. CIT(A) HAS FAILED TO APPRECIATE THE FINDINGS OF THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. 1.3 FURTHER, THE DECISION OF THE LD. CIT(A) IS NOT ACCEP TABLE ON FACTS. ITA NO. 1654/AHD/2012 ITO VS. CHETAN BIPINCHANDRA SHAH FOR AY: 2008-09 2 2. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE CIT(A ) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED TO THE ABOVE E XTENT. 2. 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 DELETION OF A DDITION RS.18,89,550/- ON ACCOUNT OF UNEXPLAINED CASH CREDITS U/S 68 OF TH E INCOME-TAX ACT AND THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS PE R THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.20 15 (CIRCULAR NO.21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGA INST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNL ESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS.10 LACS AND IT FURTHE R STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PEND ING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT T HE TAX EFFECT IS LESS THAN RS.10 LACS, WE ARE OF THE VIEW THAT THE MONETARY LI MIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD B E APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. THE PRE SENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLAT ION OF CBDT INSTRUCTIONS. THE CASE DOES NOT FALL WITHIN THE AM BIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVE D THAT SINCE, WHILE HEARING THE APPEAL, SUCH FACTORS WERE NOT CONSIDERE D, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE ASSESSING OFFI CER, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WI LL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD ITA NO. 1654/AHD/2012 ITO VS. CHETAN BIPINCHANDRA SHAH FOR AY: 2008-09 3 BE FILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 1 ST APRIL, 2016 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER AHMEDABAD; DATED 01/04/2016 BIJU T., PS !&''()(*' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' # / CONCERNED CIT 4. ' # ( ) / THE CIT(A) 5. &'( ! , ! , / DR, ITAT, AHMEDABAD 6. (- ./ / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD