Dy. Commissioner of Income Tax, Lucknow V. Shri Laxmi Nath Mehrotra, Lucknow

ITA 180/LKW/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4429 (ITAT-LUCKNOW)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 08-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Reason to believe
• Section: 147

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO.180/LKW/2016 ASSESSMENT YEAR:2006-07 SHRI LAXMI NATH MEHROTRA, KHATRI HOUSE, TIKAIT RAI TALAB, LUCKNOW. PAN:AEIPM1733L VS DY.C.I.T., RANGE-4, LUCKNOW. (RESPONDENT) (APPELLANT) SHRI T. P. SINGH, D. R. APPELLANT BY SHRI JITENDRA KUMAR YADAV, ADVOCATE RESPONDENT BY 16/05/2016 DATE OF HEARING 17/05/2015 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORD ER PASSED BY LEARNED CIT(A)-II, LUCKNOW DATED 27/01/2016 FOR THE ASSESSMENT YEAR 2006-07. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLOW ING GROUNDS: 1. THE COMMISSIONER OF INCOME-TAX (APPEALS), LUCK NOW HAS ERRED IN LAW AND ON FACTS OF THE CASE IN ANNULL ING THE ASSESSMENT ORDER PASSED U/S 147/143(3) OF THE I.T. ACT, 1961 IGNORING THE FACT THAT THE CASE WAS REOPENED O N SUBSTANTIAL REASON TO BELIEVE THAT INCOME OF RS.4,4 1,937/- ESCAPED ASSESSMENT WITHIN THE MEANING OF SECTION 14 7 DUE TO FAILURE ON PART OF THE ASSESSEE TO FULLY AND TRULY DISCLOSED ALL MATERIAL FACTS. 2. THE COMMISSIONER OF INCOME-TAX (APPEALS), LUCKNO W HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE REASO NS RECORDED FOR REOPENING THE ASSESSMENT INDICATE COMP LETE ABSENCE OF JURISDICTION TO REOPEN THE ASSESSMENT FO R THE A.Y.2006-07 AFTER MORE THAN FOUR YEARS FROM THE END OF 2 RELEVANT ASSESSMENT YEAR WITHOUT APPRECIATING THE F ACT THAT THE CASE WAS REOPENED BY THE AO WITH THE APPRO VAL OF CIT WITHIN THE LIMITATION. 2. AT THE VERY OUTSET, IT WAS NOTICED BY THE BENCH THAT AS PER THE CIRCULAR OF CBDT BEARING NO. 21 OF 2015 DATED 10 TH DECEMBER, 2015 IN WHICH THE CBDT HAS TAKEN A DECISION TO WITHDRAW ALL THE APPEALS FILED BY THE REVENUE IN WHICH TAX EFFECT INVOLVED IS LESS TH AN RS.10 LAC. 2. ON A CAREFUL PERUSAL OF THE GROUNDS OF APPEAL, W E FIND THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10 L AC THEREFORE, THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE AFOR ESAID CIRCULAR OF CBDT. THOUGH THE REVENUE WAS DIRECTED BY THE BOARD TO WIT HDRAW THIS APPEAL BUT NO STEPS HAVE BEEN TAKEN BY THE REVENUE TILL DATE. WE, THEREFORE, ARE OF THE VIEW THAT THIS APPEAL OF THE REVENUE IS NOT MAI NTAINABLE IN THE LIGHT OF THE AFORESAID CIRCULAR OF CBDT AND THEREFORE, WE DI SMISS THE SAME BEING NOT MAINTAINABLE. 3. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (MAHAVIR PRASAD) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMB ER DATED:17/05/2016 *SINGH COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGIS TRAR