The ACIT, Circle-3, Surat V. M/s. Shrre Shyam Corporation, Surat

ITA 1697/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9569 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 02-01-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 11-06-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Audit objection; Tax effect
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 44AD; 11; 15; 271(1)(b); 139; 92

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD . . , , BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.1697/AHD/2013 ( / ASSESSMENT YEAR : 2009-10) THE ASSISTANT COMMISSIONER OF INCOME- TAX, CIRCLE 3, SURAT. V/S M/S. SHREE SHYAM CORPORATION, 10, MOHINI PARK, NR.SARDAR BRIDGE, ADAJAN, SURAT- PIN CODE-395009 (APPELLANT) (RESPONDENT) PAN: AAYFS 9772 P APPELLANT BY : SHRI VILAS V. SHINDE, SR. D.R. RESPONDENT BY : ---NONE-- ( )/ ORDER DATE OF HEARING : 02 - 01-2017 DATE OF PRONOUNCEMENT : 04- 01-2017 PER MAHAVIR PRASAD, JUDICIAL MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF LD. CIT(A)-IV, SURAT DATED 19.03.2013 PERTAINING TO A.Y. 2009-10. 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE READS AS UNDER:- (I). ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A)-I, SURAT HAS ERRED IN DELETING THE ADDITION OF RS.1,14,557/- MADE ON ACCOUNT OF NATIONAL ITA NO. 1697/AHD/2013 . A.Y. 2009-10 2 INTEREST INCOME AS THE FACT THAT THE ASSESSEE FAILED TO SUBMIT PARTNERSHIP DEED TO PROVE ITS CLAIM THAT AS PER TERMS NO INTEREST WAS TO BE CHARGED ON DEBIT BALANCE, WAS NOT APPRECIATED. (II). ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A)-I, SURAT HAS ERRED IN RESTRICTING THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF EXPENSES CLAIMED IN P&L A/C OF RS.35,55,304/- TO RS.17,77,652/- AS THE FACTS THAT THE ASSESSEE HAS MISREPRESENTED THE FACTS BY STATING THAT SECTION 44AD WAS APPLICABLE TO IT AND HAS FAILED TO PROVE THE GENUINENESS OF EXPENSE CLAIMED BY SUBMITTING BOOKS OF ACCOUNTS, BILLS AND VOUCHERS, WERE NOT APPRECIATED. (III). ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A)-I, SURAT HAS ERRED IN DELETING THE ADDITION OF RS.5,00,000/- MADE ON ACCOUNT OF UNEXPLAINED CREDIT WITHOUT APPRECIATING THAT THE ASSESSEE FAILED TO SUBMIT DOCUMENTARY EVIDENCE AND GENUINE REASON FOR RS.5,00,000/- RECEIVED FROM SHRI RAJIVBHAI K. RAJPARA. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS ITA NO. 1697/AHD/2013 . A.Y. 2009-10 3 BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED IN LIMINE. ORDER PRONOUNCED IN OPEN COURT ON 04- 01-2017 SD/- SD/- (N.K. BILLAIYA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: 04-01-2017 PRITI COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) V, SURAT 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,RAJKOT TRUE COPY