The ACIT, Circle-6, Ahmedabad V. Shri Sureshchandra B.Agarwal, Ahmedabad

ITA 1701/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1170 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 07-07-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 02-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANTONY PARIATH
• Assessee Lawyers: G C PIPARA
• Keywords: Audit objection; Tax effect
• Section: 69; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ././ ./ ITA NO. 1701/AHD/2012 & CO NO.166/AHD/2012 / // / ASSESSMENT YEAR : 2004-05 ACIT, CIRCLE-6, AHMEDABAD VS SHRI SURESHCHANDRA B. AGARWAL, 12, RATNAM, ROYAL CRESCENT BUNGLOWS, OPP. NEW YORK TOWER, THALTEJ, SARKHEJ GANDHINAGAR HIGHWAY, AHMEDABAD 380054 PAN : AASPA 4905 A / // / (APPELLANT) / // / (RESPONDENT) & CROSS-OBJECTOR REVENUE BY : SHRI ANTONY PARIATH, SR DR ASSESSEE BY : SHRI G.C. PIPARA, AR / // / DATE OF HEARING : 07/07/2016 / // / DATE OF PRONOUNCEMENT: 07/07/2016 / // / O R D E R THIS APPEAL BY THE REVENUE AND THE CROSS-OBJECTION THEREOF FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME- TAX (APPEALS)-XI, AHMEDABAD DATED 07.05.2012 FOR AY 2004-2005. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL:- I) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.30,77,474/- MADE BY THE ASSESSING OFFICER U/S. 6 9 OF THE ACT. II) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN ACCE PTING THE CONTENTION OF THE ASSESSEE THAT SALE OF SHARES WAS GENUINE, WH ICH WAS SUBSTANTIATED BY BOGUS DOCUMENTS. III) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. BEFORE ME, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT HE IS WITHDRAWING THE CROSS-OBJECTION; HENCE THE CR OSS-OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. SMC-ITA NO. 1701 & CO NO.166/AHD/2012 ACIT VS. SURESHCHANDRA B. AGARWAL AY : 2004-05 2 4. WITH RESPECT TO REVENUES PRESENT APPEAL, THE LD . AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE SAME NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 O F 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBD T CIRCULAR. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL ON RECORD. I FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHI CH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. I FIND THAT THE PRESENT CASE DOES N OT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LACS. THERE FORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS-OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 7 TH JULY, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 07/07/2016 *BIJU T. SMC-ITA NO. 1701 & CO NO.166/AHD/2012 ACIT VS. SURESHCHANDRA B. AGARWAL AY : 2004-05 3 / 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