Assistant Commissioner of Income Tax, Circle-2(4), Bangalore V. Sri Panati Vidyanath Reddy, Bangalore

ITA 1830/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2357 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 08-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Unexplained investment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER A ND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO S . 1829 TO 1831 /BANG/201 7 ASSESSMENT YEAR S : 2013 - 14 TO 2015 - 16 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2 (4), BANGALORE. VS. SHRI PANATI VIDYANATH REDDY, NO. 10, SRI RAMANJANEYA NILAYA, 32 ND MAIN, 5 TH CROSS, DOLLARS COLONY, BTM 1 ST STAGE, BANGALORE 560 068. PAN: AFMPR3580F APPELLANT RESPONDENT APPELLANT BY : SHRI MUZAFFAR HUSSAIN, CIT (DR) RESPONDENT BY : SHRI NARENDRA SHARMA, ADVOCATE DATE OF HEARING : 2 1 . 0 8 .2018 DATE OF PRONOUNCEMENT : 31 . 0 8 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER ALL THESE THREE APPEALS ARE FILED BY THE REVENUE WH ICH ARE DIRECTED AGAINST A COMBINED ORDER OF LD. CIT (A)-11, BANGALORE DATED 2 9.06.2017 FOR ASSESSMENT YEARS 2013-14 TO 2015-16. ALL THESE APPEALS WERE H EARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS COMMON ORDER FOR T HE SAKE OF CONVENIENCE. 2. THE GROUNDS RAISED BY THE REVENUE FOR ASSESSMENT YEAR 2013-14 IN ITA NO. 1829/BANG/2017 ARE AS UNDER. 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS RIGHT WHILE DELETING THE ADDITIO N MADE BY THE ASSESSING OFFICER ON THE ESTIMATION @ 12% OF GROSS RECEIPTS, THOUGH THE ASSESSEE DIDN'T PRODUCED BOOKS OF ACCOUNTS & LE ARNED CIT(A) DIDN'T GIVEN ANY COMPARATIVE ANALYSIS WHILE DELETIN G THE ADDITION? 2. ANY OTHER GROUNDS THAT MAY ARISE AT THE TIME OF HEARING. ITA NOS. 1829 TO 1831/BANG/2017 PAGE 2 OF 3 3. THE GROUNDS RAISED BY THE REVENUE FOR ASSESSMENT YEAR 2014-15 IN ITA NO. 1830/BANG/2017 ARE AS UNDER. 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS RIGHTWHILE DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON THE ESTIMATION @ 12% OF GROSS RECEIPTS, THOUGH THE ASSESSEE DIDN'T PRODUCED BOOKS OF ACCOUNTS & LE ARNED CIT(A) DIDN'T GIVEN ANY COMPARATIVE ANALYSIS WHILE DELETIN G THE ADDITION? 2. ANY OTHER GROUNDS THAT MAY ARISE AT THE TIME OF HEARING. 4. SIMILARLY THE GROUNDS RAISED BY THE REVENUE FOR ASSESSMENT YEAR 2015-16 IN ITA NO. 1831/BANG/2017 ARE AS UNDER. 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS RIGHT WHILE DELETING THE ADDITIO N MADE BY THE ASSESSING OFFICER ON THE ESTIMATION @ 12% OF GROSS RECEIPTS, THOUGH THE ASSESSEE DIDN'T PRODUCED BOOKS OF ACCOUNTS & LE ARNED CIT(A) DIDN'T GIVEN ANY COMPARATIVE ANALYSIS WHILE DELETIN G THE ADDITION? 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) RIGHT WHILE DELETING THE ADDITION MA DE ON ACCOUNT OF CASH & JEWELLERY SEIZED THOUGH THE ASSESSEE HAS NOT PROVED WITH THE DOCUMENTARY EVIDENCE THAT INCOME SUSTAINED IN THE A PPEAL WAS UTILIZED FOR THE UNACCOUNTED INVESTMENT IN THE FORM OF CASH AND JEWELLERY SEIZED. 2. ANY OTHER GROUNDS THAT MAY ARISE AT THE TIME OF HEARING. 5. AT THE VERY OUTSET, IT WAS SUBMITTED BY THE LEAR NED AR OF THE ASSESSEE THAT IN THESE APPEALS, THE TAX EFFECT IS BELOW RS. 20 LACS PER APPEAL AND THEREFORE, AS PER THE RECENT CBDT INSTRUCTIONS AS PER CIRCULAR NO . 3/2018 DATED 11.07.2018, THESE APPEALS OF THE REVENUE ARE NOT MAINTAINABLE. LEARNED DR OF THE REVENUE HAD NOTHING TO SAY. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D AR OF THE ASSESSEE AND WE ALSO FIND THAT IN THESE APPEALS, THE TAX EFFECT IS BELOW RS. 20 LACS PER APPEAL AND THEREFORE, AS PER THE RECENT CBDT INSTRU CTIONS AS PER CIRCULAR NO. 3/2018 DATED 11.07.2018, THESE THREE APPEALS OF THE REVENUE ARE NOT MAINTAINABLE. ACCORDINGLY, THESE APPEALS OF THE RE VENUE ARE DISMISSED BECAUSE OF LOW TAX EFFECT. ITA NOS. 1829 TO 1831/BANG/2017 PAGE 3 OF 3 7. IN THE RESULT, ALL THE THREE APPEALS OF THE REVE NUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DA TE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 31 ST AUGUST, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.