The ACIT, Circle-3, Baroda V. Shri Shankarbhai Rambhai Patel, Borsad

ITA 2192/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9278 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 08-03-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 02-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L CHANDEL
• Assessee Lawyers: S N DIVATIA
• Keywords: Tax effect

Judgement Text

ITA NO.21 92 /AHD/201 1 ASSESSMENT YEAR: 200 3 - 04 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD C BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR AM AND S S GODARA JM ] ITA NO . 2192 /AHD/ 20 1 1 ASSESSMENT YEAR : 200 3 - 04 ASSTT. COMMISSIONER OF INCOME TAX .. .APPELLANT CIRCLE - 3, BARODA . VS. JAYABEN SHANKARBHAI PATEL , .. . RESPONDENT L/H. O F LATE SHRI SHANKARBHAI RAMBHAI PATEL , AT & PO: KAVITHA, TA: BORSAD. [PAN: A DKPP 8154 H ] APPEARANCES BY: S.L. CHANDEL , FOR THE APPELLANT S.N. DIVATIA , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : MARCH 8 TH , 201 6 DATE OF PRONOUNCING THE ORDER : MARCH 8 TH , 201 6 O R D E R PER PRAMOD KUMAR , AM : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 29 TH JUNE, 201 1 , PASSED BY TH E LD. CIT(A), FOR THE ASSESSMENT YEAR 200 3 - 04 , ON THE FOLLOWING GROUNDS : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE ID . CIT(APPEALS) ERRED IN CANCELLING THE PENALTY LEVIED U/S. 271(L)(C) ON THE ADDITION OF RS. 1,62,827 / - MADE O N ACCOUNT OF DIFFERENCE IN STOCK FOUND DURING THE COURSE OF SURVEY OPERATION, WHICH WAS CONFIRMED BY THE ID. CIT(A), ON THE GROUND THAT THE ADDITION WAS ON ESTIMATION WITHOUT APPRECIATING THE FACT THAT THE DIFFERENCE IN STOCK WAS FOUND DURING THE COURSE OF SURVEY OPERATION. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE ID . CIT(APPEA L S) ERRED IN CANCELLING THE PENALTY LEVIED U/S . 271(L)(C) ON THE ADDITION OF RS. 21,08,892/ - ON ACCOUNT OF DIFFERENCE IN VALUATION OF GODOWN MADE ON THE B ASIS OF DVO'S REPORT ON THE GROUND THAT THE ADDITION WAS ON ESTIMATION WITHOUT APPRECIATING THE FACT THAT THAT THE VALUE SHOWN BY THE ASSESSEE WAS MUCH LOWER ITA NO.21 92 /AHD/201 1 ASSESSMENT YEAR: 200 3 - 04 PAGE 2 OF 2 THAN WHAT WAS DETERMINED BY THE VALUATION CELL, AND THE UNDERVALUATION OF GODOWN COULD NOT HAVE CO ME OUT IF THE CASES WAS NOT SELECTED FOR SCRUTINY ASSESSMENT; EVEN THE VALUE SHOWN BY THE ASSESSEE WAS NEGATED BY THE ASSESSEE'S OWN APPOINTED VALUER WHO VALUED THE GODOWN MUCH HIGHER THAN WHAT WAS SHOWN BY THE ASSESSEE, AND THAT THE VALUATION MADE BY THE VALUATION CELL WAS NOT AN ESTIMATION, BUT BASED AFTER TAKING CARE OF THE TECHNICAL ASPECTS. 2. WE HAVE NOTICED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10,00,000/ - . IN VIEW OF THIS UNDISPUTED FACT AND IN THE LIGHT OF CBDT CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE CONSIDERED VIEW THAT THIS APPEAL IS LIABLE TO BE DISMISSED AS WITHDRAWN FOR THE SIMPLE REASON THAT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.10,00,000/ - . 3. IN THE RESULT, THE APPEAL IS DISMISSED. P RONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF MARCH, 2016 . SD/ - SD/ - S.S. GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) PBN/* DATED: THE 8 TH DAY OF MARCH, 201 6 . COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD