The ITO, Ward-3(4), Ahmedabad V. Kavan Virajbhai Broker L/h. of late Viraj Chimanlal Broker, Ahmedabad

ITA 1723/AHD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94765 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 30-11-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 12-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VILAS V SHINDE
• Keywords: Audit objection; Additional evidence; Tax effect
• Section: 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE S/SHRI RAJPAL YADAV, JM, & MANISH BORAD, AM. ITA NO.1723/AHD/2015 ASST. YEAR: 2006-07 INCOME-TAX OFFICER-1(3)(5), AHMEDABAD VS. LATE SHRI VIRAJ CHIMANLAL BROKER, THROUGH L/H KAVAN VIRAJBHAI BROKER. C/O M/S SUVIKA TRAVELS, 9/1, MAYUR COLONY, KIRAN COMPLEX, OPP. VANIKAR YDHYAN MITHAKALI UNDER BRIDGE, AHMEDABAD. (APPELLANT) (RESPONDENT) PA NO.ABWBP 4640E APPELLANT BY VILAS V. SHINDE, DR RESPONDENT BY NONE DATE OF HEARING: 30/11/2015 DATE OF PRONOUNCEMENT: 30/11/2015 O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER. THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAI NST THE ORDER OF THE LD.CIT(A)-5, AHMEDABAD, DATED 4.3.2015 PASSED FOR ASSTT.YEAR 2006-07. 2. SOLITARY GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) HAS ERRED ON FACTS IN CONFIRMING RS.68,461/- AS AGAINST THE ADDITION MADE ITA NO. ASST. YEAR 2 BY LD. AO AT RS.2,15,361/-. THE LD. CIT(A) HAS FURT HER ERRED IN ADMITTING ADDITIONAL EVIDENCE IN VIOLATION TO RULE 46A OF THE I.T. RULES, 1962. 3. THE RETURN OF INCOME WAS FILED ON 29/12/2006 DEC LARING INCOME OF RS.4,01,870/-. THE ASSESSEE WAS ENGAGED IN THE B USINESS OF AIRLINE TICKET BOOKING AGENT (ITAT APROVED). THE CA SE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND ASSESSMENT T HEREOF WAS COMPLETED UNDER SECTION 143(3) ON 3.4.2008 BY THE I TO WARD 3(4). THEREAFTER THE CASE WAS REOPENED ON THE GROUND THAT THERE IS A VARIATION IN THE SALARY LEDGER SUBMITTED DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS AND THAT OF CLAIMED AS AN EX PENSE IN P & L ACCOUNT. THE ASSESSING OFFICER FINALIZED THE ASSESS MENT UNDER SECTION 147 ON 14.11.2011. 4. THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) WH O HAS PARTLY ALLOWED THE APPEAL. 5. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE. SO AFTE R HEARING THE LD. DR WE PROCEED TO DECIDE THE APPEAL. THE AS PER CBDT CIRCULAR NO.3 DATED 9.2.2011 NO APPEAL SHALL BE FILED BY THE DEPARTMENT IF THE TAX EFFECT IS LESS THAN RS.3,00,000/-. 6. WHEN IT WAS POINTED OUT THAT THE APPEAL IS LOW T AX EFFECT THE LD. DR COULD NOT CONTROVERT. ITA NO. ASST. YEAR 3 7. ON DUE CONSIDERATION OF THE FACTS, WE ARE OF THE VIEW THAT THE CBDT HAD ISSUED INSTRUCTION BEARING NO. 3/2011 [F. NO. 279/MISC. 142/2007-ITJ], DATED 9-2-2011 VIDE WHICH IT HAS BEE N PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF CIT(A)S ORDER IS BELOW RS.3 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL I N FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTION S WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEM PTION CLAUSE, THE TAX IS LESS THAN RS.3 LAKHS, AND THEREFORE, THE PRE SENT APPEAL IS NOT MAINTAINABLE. 8. IN THE RESULT OF THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH NOV. 2015 SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER DATED 30/11/2015 MAHATA/- ITA NO. ASST. YEAR 4 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 ASST. REGISTRAR, ITAT, AHMEDABAD 1. DATE OF DICTATION: 30/11/2015 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 30/11/2015 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: 30/11/2015 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: