The ACIT, Circle -4, Surat V. M/s. R.S. Tradelink Pvt. Ltd., Surat

ITA 1903/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6011 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-04-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 05-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH MEENA
• Assessee Lawyers: M K PATEL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1903/AHD/2013 ( / ASSESSMENT YEAR : 2006-07) THE ACIT CIRCLE-4 MAJURAGATE, SURAT / VS. M/S.R.S.TRADELINK PVT.LTD. C/O. BOMBAY WAY BRIDGE MAGDALIA PORT ROAD MAGDALIA, SURAT 395 002 $ ./ ./ PAN/GIR NO. AABCR 6607 A ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY: SHRI OM PRAKASH MEENA, SR.DR ($'*) / RESPONDENT BY: SHRI M.K. PATEL, AR +,*- / DATE OF HEARING 27/04/2017 ./0*- / DATE OF PRONOUNCEMENT 05/ 05/2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-II , SURAT [CIT(A) IN SHORT] DATED 28/03/2013 FOR THE ASSESSMENT YEAR (AY) 2006-07. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READ S AS UNDER:- ITA NO.1903/AHD /2013 ACIT VS.M/S. R.S.TRADELINK PVT.LTD. ASST.YEAR 2006-07 - 2 - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 20,72,499/- MADE BY THE A.O. ON ACCOUNT OF BOGUS SUNDRY CREDITORS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD.CIT(A) HAS ERRED IN NOT APPRECIATING THE FACT FO UND BY HIMSELF DURING THE APPELLATE PROCEEDINGS THAT SUNDRY CREDIT ORS OF RS.41,44,998/- IS BOGUS. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A), SURAT OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER AT LEAST TO THE EXTENT THE CREDITORS WERE F OUND BY HIM TO BE BOGUS INSTEAD OF APPLYING THE RATIO OF 50%. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD.CIT(A), SURAT MAY BE SET-A SIDE AT LEASE TO HIS EXTENT AND THAT OF THE ASSESSING OFFICERS ORDE R MAY BE RESTORED. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID CIRCULA R, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A ME ASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS RS.10 LAKHS. IN THE INSTANT CASE, T HE TAX EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STATED TO B E LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE D ISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. ITA NO.1903/AHD /2013 ACIT VS.M/S. R.S.TRADELINK PVT.LTD. ASST.YEAR 2006-07 - 3 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 05/ 05/2017 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 05/ 05 /2017 4..+,.+../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-II, SURAT 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION ..27.4.17 (COVERED CASE TAX EFFECT) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 27.4.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.5.5.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.5.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER