ITO, BHARATPUR V. RAJ KUMAR GOYAL, BHARATPUR

ITA 241/JPR/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2477 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 30-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PGQ VIHYKFKHZ IZRFKHZ
• Keywords: Accommodation entries; Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 241/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13. THE INCOME TAX OFFICER, WARD -2, BHARATPUR. CUKE VS. SHRI RAJ KUMAR GOYAL, PROP. M/S. TILAKDHARI JEWELLERS, MAIN MARKET, SARRAFA BAZAR, BHARATPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ABYPG 1374 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SMT. NEENA JEPH (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : WRITTEN SUBMISSION LQUOKBZ DH RKJH[K@ DATE OF HEARING : 28.08.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 28/08/2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 06.01.2017 OF LD. CIT (A), ALWAR FOR THE ASSESSMENT YEAR 2012-13. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE LD. CIT (A) ERRED IN REDUCING THE ADDITION OF RS. 54,30,000/- T O RS. 9,00,000/- WHICH WAS MADE BY AO ON ACCOUNT OF NON-G ENUINE ACCOMMODATION ENTRIES/UNSECURED LOANS TAKEN BY THE ASSESSEE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E LD. CIT (A) ERRED IN REDUCING THE ADDITION OF RS. 5,27,538/- TO RS. 2,11,800/- WHICH WAS MADE BY AO ON ACCOUNT OF INTER EST PAID ON NON GENUINE ACCOMMODATION ENTRIES/UNSECURED LOAN S TAKEN BY THE ASSESSEE. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E LD. CIT (A) ERRED IN DELETING THE TRADING ADDITION OF RS. 9,86, 536/- MADE BY 2 ITA NO. 241/JP/2017 SHRI RAJ KUMAR GOYAL, BHARATPUR. AO BY INVOKING PROVISION OF SECTION 145(3) OF THE I T ACT AFTER REJECTING THE BOOKS OF ACCOUNT. 2. THE DISPUTE IN THE APPEAL OF THE REVENUE IS REGA RDING REDUCING THE ADDITION OF RS. 54,30,000/- TO RS. 9,00,000/- AND REDUCING THE ADDITION OF RS. 5,27,538/- TO RS. 2,11,800/- WHICH WERE MADE BY AO ON ACCOUNT OF NON GENUINE ACCOMMODATION ENTRIES/UNSECURED LOANS AND INTEREST PAID ON NON-G ENUINE ACCOMMODATION ENTRIES/UNSECURED LOANS RESPECTIVELY AND DELETION OF TRADING ADDITION OF RS. 9,86,536/- MADE BY THE AO BY INVOKING THE PROVISION S OF SECTION 145(3). ADMITTEDLY THE TAX EFFECT IN THE REVENUES APPEAL I S NOT EXCEEDING THE LIMIT OF RS. 20 LACS AS PER CBDT CIRCULAR NO. 3 OF 2018. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRESCRIBED THR ESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER C IRCULAR NO. 21 OF 2015 DATED 10.12.2015. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 3 ITA NO. 241/JP/2017 SHRI RAJ KUMAR GOYAL, BHARATPUR. 4. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 5. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEA L OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PR ESSED/WITHDRAWN. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/08 /2018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 28/08/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE INCOME-TAX OFFICER, WARD 2, B HARATPUR. 2. THE RESPONDENT SHRI RAJ KUMAR GOYAL, BHARATPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 241/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 241/JP/2017 SHRI RAJ KUMAR GOYAL, BHARATPUR.