Income-tax Officer, Ward - 2, Ichalkranji V. Dada Appa Patil HUF, Kolhapur

ITA 2415/PUN/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4792 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 13-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Keywords: Tax effect
• Section: 131

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI GEORGE MATHAN, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.2415/PUN/2017 / ASSESSMENT YEAR : 2009-10 THE INCOME TAX OFFICER, WARD-2, ICHALKARANJI. . / APPELLANT V/S SHRI DADA APPA PATIL HUF, A/P MANGAON, TAL. HATKANANGALE, DIST. KOLHAPUR. PAN : AAIHD3611G. . / RESPONDENT ASSESSEE BY : SHRI PRAMOD SHINGTE. REVENUE BY : SHRI S.P. WALIMBE. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF THE O RDER OF COMMISSIONER OF INCOME TAX (A) 2, KOLHAPUR DATED 02.08. FOR THE ASSESSMENT YEAR 2009-10. 2. THE GROUNDS RAISED BY THE REVENUE READS AS UNDER : 1. BASED ON THE FACTS AND KEEPING IN ACCORDANCE WI TH LAW, THE CIT(A) - 2 KOLHAPUR HAS ERRED IN DELETING THE POINT RELATED TO UNDISCLOSED INVESTMENT IN LAND ASSET. THE APPELL A NT HAS FAILED TO OFFER THE SAID UNDISCLOSED INVESTMENT IN LAND FOR TAXATION EVEN AFTER ADMITTING THE SAME IN A STATEME NT RECORDED U/S 131 OF THE IT ACT, 1961 BEFORE INVESTIGATION WI NG. 2. ON THE FACTS AND IN LAW, THE CI T (A) - 2 K OL HAP U R ERRED IN ESTIMATING AGRICULTURAL INCOME WHICH SHOULD HAVE BE EN BASED ON ACTUAL L AND U N DER CULTIVATION AND SUBSTANTIVE PROOF / DATE OF HEARING : 21.02.2020 / DATE OF PRONOUNCEMENT: 21.02.2020 2 ITA NO.2415/PUN/2017 OBTAINED FROM TALATHI OFFICE. THE APPEL L ANT CRAVES TO LEAVE , ADD/AMEND OR ALTER ANY OF THE ABOVE GROUNDS OF APPE AL. 3. ON THE FACTS AND IN LAW, THE CIT (A)-2, KO L HAPUR, ERRED IN ADMITTING THE PRODUCTION OF ADDITIONAL EVI D ENCE IN APPEAL, IN THE FORM OF MERE COMBINED CASH FLOW STATEMENT , WHEN , ASSESSEE HAS DULY MAINTAINED CASH BOOK, RECEIPT & PAYMENT ACCOUNT AND HE DULY BEEN DRAWN BALANCE SHEET. 4. ON THE FACTS AND IN LAW, ADDITION MADE ON ACCOUN T OF INTEREST ON ACCRUED BASIS ON FDR(S) OUGHT TO HAVE B EEN CONFIRMED BY THE CIT ( A)-2, KO L HAPUR. 5. THE CIT (A ) -2, KOLHAPUR ERRED IN NOT PROVIDI N G OP P ORTUNITY TO THE A.O . VIDE ADMITTING THE EVIDENCE IN THE FORM OF COMBINED CASH FLOW STATE M ENT, WHICH WAS NOT PRODUCED DURING THE COURSE O F ASSESSMENT PROCEEDINGS IN T H E LIGHT OF PROVISIONS OF RULE 46A OF INCOME TAX RULE , 1962 . 3. BEFORE US, AT THE OUTSET, LD.A.R. SUBMITTED THAT THE APP EAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF CIRCULAR NO.17/2019 DATED 08.08.2019 ISSUED BY CBDT AND T HEREFORE, THE APPEAL OF THE REVENUE BE DISMISSED. LD.D.R. DID NOT OBJECT TO THE AFORESAID CONTENTION MADE BY THE LD.A.R. BUT HOWEVER SUP PORTED THE ORDER OF LOWER AUTHORITIES. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL R AISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE RECENT AN NOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 08.08.2019 (CIRCU LAR NO. 17 OF 2019), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST, EXCEEDS RS.50 LAKHS AND IT FURTH ER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDIN G APPEALS ALSO. WE FIND THAT IN THE PRESENT CASE THE TAX EFFECT INVOLVED IS LESS THAN RS.50 LAKHS. IN THE ABSENCE OF ANY MATERIAL PLACED ON REC ORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED 3 ITA NO.2415/PUN/2017 BY EXCEPTIONS PROVIDED IN PARA 10 OF THE AFORESAID CBDT C IRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY TH E INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PR ESENT APPEAL OF THE DEPARTMENT. WE THEREFORE HOLD THE PRESENT APPEAL OF REVENUE TO BE NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFEC T. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APP LICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APP EAL. THUS, THE GROUNDS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON 21 ST DAY OF FEBRUARY, 2020. SD/- SD/- ( GEORGE MATHAN ) ( ANIL CHATURVEDI ) ! / JUDICIAL MEMBER '! / ACCOUNTANT MEMBER PUNE; DATED : 21 ST FEBRUARY, 2020. YAMINI #$%&'('% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-2, KOLHAPUR. PR. CIT-2, KOLHAPUR. '#$ %%&',) &', / DR, ITAT, PUNE; $+,-/ GUARD FILE. / BY ORDER // TRUE COPY // ./0%1&2 / SR. PRIVATE SECRETARY ) &', / ITAT, PUNE.