Assistant Commissioner of Income-tax, V. M/s. Kranti Realtors Pvt. Ltd., Pune

ITA 2191/PUN/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9508 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-02-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 19-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HEMANT KUMAR LEUVA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.2191/PN/2013 (ASSESSMENT YEAR : 2010-11) ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), PUNE. . APPELLANT VS. M/S KRANTI REALTORS PVT. LTD., 202, 1206/2A, SANKALP, NEAR SANTOSH BAKERY, SHIVAJI NAGAR, PUNE 411 005. PAN : AACCK9742Q . RESPONDENT DEPARTMENT BY : SHRI HEMANT KUMAR LEUVA ASSESSEE BY : SHRI DHARMESH SHAH DATE OF HEARING : 16-02-2015 DATE OF PRONOUNCEMENT : 16-02-2015 ORDER PER G. S. PANNU, AM THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGA INST AN ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-CENTRAL, P UNE DATED 23.09.2013 WHICH, IN TURN, HAS ARISEN FROM AN ORDER DATED 30.1 2.2011 PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT), PERTAINING TO THE ASSESSMENT YEAR 2010-11. 2. IN THIS APPEAL, THE SOLITARY DISPUTE RELATES TO THE ACTION OF THE CIT(A) IN DELETING THE ADDITION OF RS.11,81,595/- ON ACCOUNT OF COMMISSION PAID TO MR. L.V. VANTHOOR. 3. IN BRIEF, THE RELEVANT FACTS ARE THAT ASSESSEE I S AN INDIVIDUAL ENGAGED IN THE BUSINESS OF DEVELOPERS AND PROMOTERS FOR REAL E STATE PROPERTY. FOR THE YEAR UNDER CONSIDERATION, IT FILED A RETURN OF INCO ME DECLARING TOTAL INCOME AT NIL, WHICH WAS SUBJECT TO A SCRUTINY ASSESSMENT. IN THE COURSE OF ASSESSMENT PROCEEDINGS, ASSESSING OFFICER ADDED A S UM OF RS.11,81,595/- ON ITA NO.2191/PN/2013 ACCOUNT OF COMMISSION PAID BY THE ASSESSEE TO MR. L .C. VANTHOOR. IN THIS REGARD, ASSESSEE EXPLAINED THAT HE HAD NEVER PAID C OMMISSION TO MR. L.C. VANTHOOR. THE ASSESSING OFFICER HAS NOT SATISFIED WITH THE EXPLANATION OF THE ASSESSEE AND ADDED A SUM OF RS.11,81,595/- TO THE R ETURNED INCOME OF THE ASSESSEE. THE CIT(A) HAS NOT AGREED WITH THE STAN D OF THE ASSESSING OFFICER AND DELETED THE ADDITION. NOT BEING SATISFIED WITH THE DECISION OF THE CIT(A), REVENUE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, A PRELIMINARILY OBJECTIO N WAS RAISED BY THE LD. REPRESENTATIVE FOR THE RESPONDENT-ASSESSEE TO THE E FFECT THAT THE CAPTIONED APPEAL IS NOT MAINTAINABLE IN VIEW OF INSTRUCTION N O.5 OF 2014 DATED 10.07.2014 ISSUED BY THE CBDT. THE PLEA RAISED BEF ORE US IS THAT THE TAX EFFECT IN RESPECT OF THE ISSUE RAISED IN THE PRESEN T APPEAL IS BELOW THE LIMIT PRESCRIBED BY CBDT IN ITS INSTRUCTION NO.5 OF 2014 (SUPRA) FOR FILING OF APPEALS BEFORE THE TRIBUNAL. 5. IN RESPONSE, THE LD. DEPARTMENTAL REPRESENTATIVE HAS NOT CONTESTED THE FACTUAL MATRIX THAT THE TAX EFFECT INVOLVED IN PRESENT APPEAL IS BELOW THE MONETARY LIMITS PRESCRIBED BY THE CBDT IN ITS INSTR UCTION NO.5 OF 2014 (SUPRA) REGARDING FILING OF APPEALS BEFORE THE TRIBUNAL. 6. IN VIEW OF THE AFORESAID FACTUAL POSITION, IT IS EVIDENT THAT THE CAPTIONED APPEAL IS NOT MAINTAINABLE AND IS HIT BY THE MONETA RY LIMITS PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO.5 OF 2014 (SUPRA) FOR FILI NG OF APPEALS BEFORE THE TRIBUNAL. NOTABLY, AS PER THE CBDT INSTRUCTION NO. 5 OF 2014 (SUPRA) APPEAL BEFORE THE TRIBUNAL SHALL NOT BE FILED IN CASES WHE RE THE TAX EFFECT IN RESPECT OF THE ISSUES RAISED IS BELOW RUPEES FOUR LACS. AS A RESULT OF THE AFORESAID DISCUSSION, IN OUR VIEW, THE PRESENT APPEAL OF THE REVENUE IS NOT MAINTAINABLE ITA NO.2191/PN/2013 IN THE LIGHT OF THE CBDT INSTRUCTION NO.5 OF 2014 ( SUPRA). ACCORDINGLY, THE CAPTIONED APPEAL IS DISMISSED AS NOT MAINTAINABLE. 7. RESULTANTLY, THE APPEAL OF THE REVENUE IS DISMIS SED, AS ANNOUNCED AT THE CONCLUSION OF HEARING BEFORE BOTH THE PARTIES O N 16 TH FEBRUARY, 2015. SD/- SD /- (R.S. PADVEKAR) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE, DATED: 16 TH FEBRUARY, 2015. SUJEET COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A)-CENTRAL, PUNE; 4) THE CIT-CENTRAL, PUNE; 5) THE DR B BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE