Income-tax Officer, Ward - 6(3), , Pune V. M/s. Sukhanraj Shobhachand Sakhariya, Pune

ITA 2044/PUN/2017

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0721 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 24-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 2

Judgement Text

SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE . , BEFORE SHRI D. KARUNAKARA RAO, AM . / ITA NO.2044/PUN/2017 / ASSESSMENT YEAR : 2014-15 ITO, WARD-6(3), PUNE . /APPELLANT VS. M/S. SUKHANRAJ SHOBHACHAND SAKHARIYA, 401, RAVIWAR PETH, SONYA MARUTI CHOWK, LAXMI ROAD, PUNE 411 002 PAN : AAPFS9500G . / RESPONDENT / APPELLANT BY : SHRI RAJESH GAWALI / RESPONDENT BY : SHRI BHARAT SHAH / DATE OF HEARING : 03.10.2018 / DATE OF PRONOUNCEMENT: 03.10.2018 / ORDER PER D. KARUNAKARA RAO, AM : THIS IS THE APPEAL FILED BY REVENUE AGAINST THE ORDER O F CIT(A)-4, PUNE DATED 17-04-2017 FOR THE ASSESSMENT YEAR 2014-15. 2. GROUNDS RAISED BY THE REVENUE ARE EXTRACTED BELOW : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) HAS ER RED IN ACCEPTING THE SHARP FALL IN GROSS PROFIT BY 10% AND NET PROFIT BY 12% KEEPING ASIDE THE POSITION IN EARLIER YEAR, I.E. 2013-14. 2. FOR THIS AND SUCH OTHER REASONS AS MAY BE URGED AT THE TIME OF HEARING, THE ORDER OF THE CIT(A) MAY BE VACATED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER OR DELETE ANY OF THE ABOVE GROUNDS OF APPEAL DURING THE COURSE OF AP PELLATE PROCEEDINGS BEFORE THE HONBLE TRIBUNAL. ITA NO.2044/PUN/2017 M/S. SUKHANRAJ S. SAKHARIYA 2 3. BRIEFLY STATED RELEVANT FACTS INCLUDES THAT THE ASSESS EE IS A FIRM ENGAGED IN GOLD JEWELLERY, SILVER AND DIAMOND TRADING. THERE WAS SURVEY ACTION U/S.133A OF THE ACT. SURVEY RESULTED IN DE CLARATION OF GOLD JEWELLERY WORTH RS.1 CRORE. IN THE ASSESSMENT, THE AO NOTICED DISCREPANCIES IN STOCK. AT THE END OF ASSESSMENT, THE AO MADE ADDIT ION OF RS.40,56,829 ON ACCOUNT OF GROSS PROFIT ON ESTIMATION BAS IS. CONTENTS OF PARA NO.4 OF THE ASSESSMENT ORDER ARE RELEVANT. 4. IN THE FIRST APPELLATE PROCEEDINGS, THE CIT(A) DELETED T HE ADDITION MADE BY THE AO. CONTENTS OF PARA NO.5.3.2 ARE RELEVANT. AGGRIEVED WITH THE ORDER OF CIT(A), THE REVENUE FILED THE PRESENT A PPEAL BEFORE THE TRIBUNAL. 5. AT THE OUTSET, LD. AR FOR THE ASSESSEE SUBMITTED TH AT THE APPEAL FILED BY THE DEPARTMENT IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. THE LD. AR POINTED THAT AS PER CBDT CIRCULAR NO.3/2 018 DATED 11 TH JULY, 2018, THE MONETARY LIMIT FOR FILING OF APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL IS RS.20 LAKHS, THEREFORE, T HE APPEAL FILED BY THE DEPARTMENT IS NOT MAINTAINABLE. 6. ON THE OTHER HAND, THE LD. DR FOR THE REVENUE DEFEND ED THE ASSESSMENT ORDER AND PRAYED FOR REVERSING THE FINDINGS O F THE CIT(A). HOWEVER, THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT IN THE PRESENT APPEAL IS LESS THAN RS.20 LAKHS. 7. BOTH SIDES ARE HEARD. ON GOING THROUGH THE FACTS OF THE CASE AND THE ORDERS OF THE REVENUE, I FIND THE TOTAL TAX EFFECT INVO LVED IN THE PRESENT APPEAL WORKS OUT TO BELOW 20 LAKHS. THE CBDT CIR CULAR NO.3/2018 DATED 11 TH JULY, 2018 RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL T O RS.20 ITA NO.2044/PUN/2017 M/S. SUKHANRAJ S. SAKHARIYA 3 LAKHS. THE CIRCULAR APPLIES TO THE PENDING APPEALS OF THE D EPARTMENT BEFORE THE TRIBUNAL TOO. THUS, IN VIEW OF THE CBDT CIRCULAR , I AM OF THE OPINION THAT THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT WITHOUT GOING INTO THE MERITS OF THE CASE. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 03 RD DAY OF OCTOBER, 2018. SD/- (D.KARUNAKARA RAO) / ACCOUNTANT MEMBER / PUNE; DATED : 03 RD OCTOBER, 2018. SATISH / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A)-4, PUNE 4. / THE PR.CIT-3, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. / BY ORDER, //TRUE COPY// SENIOR PRI VATE SECRETARY , / ITAT, PUNE