Income-tax Officer, Ward - 1(1), Kolhapur V. Lahori Prem Pahilajraj, Kolhapur

ITA 1773/PUN/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7612 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 19-09-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 19-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 143(1)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER . / ITA NO.1773/PUN/2018 / ASSESSM ENT YEAR : 2010-11 THE INCOME TAX OFFICER, WARD 1(1), KOLHAPUR. . / APPELLANT V/S LAHORI PREM PAHILAJRAJ, 1510/C, LAXMIPURI, KOLHAPUR. PAN : AAAPL6840P. . / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI YASHWANT TANDATE. PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (A) 1, KOLHAPUR DATED 05.09.20 18 FOR A.Y. 2010-11. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL, WHO ELECTRONICALLY FILED ITS RETURN OF INCOME FOR A.Y. 2010-11 ON 25.09.2010 DECLARING TOTAL INCOM E OF RS.7,10,390/-. THE CASE WAS INITIALLY PROCESSED U/S 143(1) OF THE ACT. SUBSEQUENTLY, NOTICE U/S 143(3) OF THE ACT ON 27.09.2011 WAS ISSUED A ND / DATE OF HEARING : 19.09.2019 / DATE OF PRONOUNCEMENT: 16.10.2019 2 SERVED ON ASSESSEE ON 28.09.2011. THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY AND ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DT.26.11.2012 DETERMINING THE TOTAL INCOME AT RS.10,52,022/- . AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATT ER BEFORE LD.CIT(A) WHO VIDE ORDER DT.05.09.2018 (IN APPEAL NO.KOP/35 8/2014-15) ALLOWED THE APPEAL OF ASSESSEE. AGGRIEVED BY THE ORDER O F LD.CIT(A), REVENUE IS NOW IN APPEAL AND HAS R AISED THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) 1, KOLHAPUR, HAS ERRED IN DELETING THE ADDITION OF RS.60,680/- MADE ON ACCOUNT OF DIFFERENCE IN BALANCE IN DEBTORS ACCOUNT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD.CIT(A) 1, KOLHAPUR HAS ERRED IN NOT APPRECIATI NG THE FACT THAT THE ASSESSEE HIMSELF EXPRESSED INABILITY TO RECONCILE T HE DIFFERENCE AND GIVEN CONSENT FOR ADDITION WHICH REQUIRES TO BE SUSTAINED FOLLOWING SC DECISION IN B. KISHOR KUMAR VS. DCIT, CHENNAI IN 62 TAXMAN 2 15(SC). 3. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) -1, KOLHAPUR BE VACATED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. ALL THE GROUNDS BEING INTER-CONNECTED ARE CONSIDERED TOGETHER . 4. ON THE DATE OF HEARING, NONE APPEARED ON BEHALF OF TH E ASSESSEE NOR ANY ADJOURNMENT APPLICATION WAS FILED DESPITE SERVICE OF NOTICE. I THEREFORE PROCEED TO DECIDE THE PRESENT APPEAL BASED O N THE MATERIAL AVAILABLE ON RECORD AND AFTER HEARING LD. D.R. 5. BEFORE ME, LD. D.R. AT THE OUTSET, FAIRLY ADMITTED THAT THE TAX EFFECT ON THE GROUNDS RAISED BY REVENUE IS BELOW THE LIMIT PRESC RIBED BY THE RECENT CBDT CIRCULAR NO.17/2019 DT.08.08.2019 AND THEREFO RE THE APPEAL BE DECIDED ACCORDINGLY. 6. I HAVE HEARD THE LD. D.R. AND PERUSED THE MATERIAL AV AILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, I FIND 3 THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RE SPECT OF THE RELIEF GIVEN BY HIM. AS PER THE RECENT ANNOUNCEMENT OF CENTRAL BOARD OF D IRECT TAXES (CBDT) DATED 08.08.2019 (CIRCULAR NO. 17 OF 2019), NO DE PARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFOR E THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTERE ST, EXCEEDS RS.50 LAKHS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS ALSO. I FIND THAT IN THE PRESENT CASE THE TAX EFFECT INVOLVED IS LESS THAN RS.50 LAKHS. IN THE ABSENCE OF ANY MATERIAL PLACED ON RECORD BY THE REVENUE TO DEMONSTRAT E THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXCEPTIONS PROVIDED IN PARA 10 OF THE AFORESAID CBDT CIRCULAR, I AM OF THE VIEW THAT THE MONET ARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCU LAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT. I TH EREFORE HOLD THE PRESENT APPEAL OF REVENUE TO BE NOT MAINTAINABLE ON ACC OUNT OF LOW TAX EFFECT AND EVEN ALSO ON MERITS. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE RE VENUE TO SEEK REVIVAL OF THE APPEAL. THUS, THE GROUNDS OF THE REVENUE ARE DISM ISSED. 7. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON 16 TH DAY OF OCTOBER, 2019. /- SD/- ( ANIL CHATURVEDI ) ! / ACCOUNTANT MEMBER PUNE; DATED : 16 TH OCTOBER, 2019. YAMINI 4 '#$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-1, KOLHAPUR. PR. CIT-1, KOLHAPUR. !'##$%, ' $% , () / DR, ITAT, SMC PUNE; '+,-/ GUARD FILE. / BY ORDER // TRUE COPY // . /0#1$2 / SR. PRIVATE SECRETARY ' $% , / ITAT, PUNE.