The DCIT,(OSD), Circle-9, Ahmedabad V. Shri Ramesh L. Shah, Ahmedabad

ITA 1759/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0331 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 06-10-2016
• Assessment Year: 1997-1998
• Appeal Filed On: 13-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Keywords: Audit objection; Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NOS. 1759 & 1760/AHD/2013 / ASSESSMENT YEAR : 1997-98 & 1998-99 DCIT, CIRCLE-9, AHMEDABAD VS SHRI RAMESH L. SHAH, 2, KRISHNA APPTS, AMBAWADI, AHMEDABAD PAN : AFQPS 2500 E / (APPELLANT) / (RESPONDENT REVENUE BY : SMT. SONIA KUMAR, SR. DR ASSESSEE BY : NONE / DATE OF HEARING : 06/10/2016 / DATE OF PRONOUNCEMENT: 07/10/2016 / O R D E R THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEALS)- XV, AHMEDABAD OF EVEN DATED 25.03.2013 FOR ASSESSMENT YEARS 1997-199 8 & 1998-1999 RESPECTIVELY. 2. THE REVENUE HAS TAKEN FOLLOWING GROUNDS IN ITS A PPEALS:- AY : 1997-1998 THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AH MEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 11,00,000/- MADE ON ACCOUNT OF UNSECURED LOAN U/S 68 IN RESPECT OF LOAN FROM SHRI JANAKBHAI BAROT FOR RS.6,60,000/- & RS.4,50,000/- IN RESPECT OF LOAN FROM M/S RAMVIJAY CHEMICALS FOR RS.4,50,000/- ONLY BASED ON AN AFFIDAVIT FROM THE DEPOSITORS WITHOUT ANY CORROBORATED EVIDENCE. AY : 1998-99 1. THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AH MEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWA NCE OF EXPENSES OF RS.19,25,614/- OUT OF TOTAL DISALLOWANCE OF RS.28,6 1,177/- ON ACCOUNT OF PROPORTIONATE EXPENSES. SMC-ITA NOS. 1759 & 1760/AHD/2013 DCIT VS. SHRI RAMESH L. SHAH AY : 1997-98 & 1998-99 2 2. THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AH MEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.89,387/- MADE ON ACCOUNT OF INTEREST EXPENSES ON CASH CREDIT. 3. I HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROU NDS OF APPEALS RAISED BY THE REVENUE, I PRIMA-FACIE FIND THAT THE TAX EFF ECT IN BOTH THESE APPEALS IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CE NTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO.21 OF 20 15), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT , EXCLUDING INTEREST, EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE I NSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. 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 UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. I PRIMA-FACIE FIND THAT THE PRESENT CASES DO NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT OF BOTH THESE APPEALS IS BELOW RS. 10 LAKHS. THEREFORE, THESE APPEALS OF TH E REVENUE ARE NOT MAINTAINABLE AND HENCE DISMISSED. 4. IN THE RESULT, BOTH APPEALS OF THE REVENUE ARE D ISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 7 TH OCTOBER, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 07/10/2016 *BIJU T. SMC-ITA NOS. 1759 & 1760/AHD/2013 DCIT VS. SHRI RAMESH L. SHAH AY : 1997-98 & 1998-99 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