ACIT, Jaipur V. M/S EURO JEWELS, Jaipur

ITA 244/JPR/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9674 (ITAT-JAIPUR)
• Duration Of Justice: 5 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 15-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: N K BAID DHK
• Keywords: Tax effect
• Section: 143(3)

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 DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 244/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2004-05. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-2, JAIPUR. CUKE VS. M/S. EURO JEWELS, 2238, HALDIYON KA RASTA, JOHARI BAZAR, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAFE 3220 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT C.O. NO. 32/JP/2012 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 244/JP/2012 ) FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2004-05. M/S. EURO JEWELS, 2238, HALDIYON KA RASTA, JOHARI BAZAR, JAIPUR. CUKE VS. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-2, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAFE 3220 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.A. VERMA (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI N.K. BAID (ADVOCATE) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 10.03.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 15 /03/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE ARE TWO APPEAL AND CROSS OBJECTION FILED BY THE REVENUE AND ASSESSEE RESPECTIVELY AGAINST THE ORDER OF LD. CIT (A)-III, JAIPUR DATED 19.12.2011 PERTAINING TO ASSESSMENT YEAR 2004-05. THE GROUND OF REVENUES APPEAL AND GROUNDS OF THE ASSESSEES CROSS OBJECTION ARE AS UNDER :- 2 ITA NO. 244/JP/2012 & C.O. NO. 32/JP/2012 M/S. EURO JEWELS, JAIPUR. GROUND IN REVENUES APPEAL : WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW THE LEARNED CIT (A) IS JUSTIFIED IN GIVING THE RELI EF OF RS. 16,66,543/- ON ACCOUNT OF TRADING ADDITION TO THE ASSESSEE IGNORIN G THE DECISION OF ITAT IN THE CASE OF M/. NAND KISHORE MEGHRAJ. GROUND IN ASSESSEES C.O. : 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE RESULTS BEING FAIR AND REASONABLE, THE ASSESSEE HAV ING SHOWN BETTER GROSS PROFIT RATE AND BETTER RESULTS, THE LD . COMMISSIONER OF INCOME TAX (APPEALS) GROSSLY ERRED IN SUSTAINING A SUMP SUM TRADING ADDITION OF RS. 50,000/- WHEN NO LSUCH ESTI MATION WAS REQUIRED TO BE MADE BY HIM. 1.1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AVING FOLLOWED THE DECISION OF THE HONBLE RAJASTHAN HIGH COURT IN THE CASE OF GOTAN KHANIJ UDYOG (256 ITR 243), HE HAVING BEEN SATISFIED THAT NO ADDITION U/S 143(3) AS SUCH CANNO T BE MADE BUT STILL CHOSE TO SUSTAIN AN ADDITION OF RS. 50,00 0/- WHICH IS UNJUSTIFIED, BAD IN LAW, WITHOUT EVIDENCE, CONTRARY TO THE MATERIAL ON RECORD AND DESERVES TO BE DELETED. 2. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS ) IS CORRECT AND JUSTIFIED IN DELETING THE TRADING ADDITION TO T HE EXTENT OF RS. 16,66,543/-. 2. AT THE OUTSET, IT IS CONTENDED ON BEHALF OF THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LO W TAX EFFECT. 2.1. ON THE CONTRARY, LD. D/R OPPOSED THE SUBMISSIO NS. 2.2. AFTER HEARING BOTH THE PARTIES, WE NOTED THAT THE APPEAL FILED BY THE REVENUE RELATE TO DELETION OF ADDITION OF RS. 16,66,543/-. THE TAX EFFECT IN THIS CASE IS LESS THAN RS. 10 LACS. WHEN THE TAX EFFECT IN THE APPEAL OF THE DEPARTMENT IS LESS THAN RS. 10 LACS THEN THE SAME IS NOT MAINTAINABLE IN VI EW OF THE CBDT CIRCULAR NO. 21/2016 [F. NO. 279/MISC.142/2007-ITJ (PT)] DATED 1 0 TH DECEMBER, 2015. AS PER SECTION 268A IF TAX EFFECT IS LESS THAN RS.10 LACS THEN APPEAL OF DEPARTMENT IS NOT 3 ITA NO. 244/JP/2012 & C.O. NO. 32/JP/2012 M/S. EURO JEWELS, JAIPUR. MAINTAINABLE. MOREOVER, WE DO NOT FIND ANY EXCEPTIO N IN THE APPEAL FILED BY THE REVENUE AS PRESCRIBED IN THE CBDT CIRCULAR REFERRED ABOVE. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED IN LIMINE. C.O. NO. 32/JP/2012: 3. SINCE THE APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE IN VIEW OF THE CBDT CIRCULAR NO. 21/2016 [F. NO. 279/MISC.142/ 2007-ITJ (PT)] DATED 10 TH DECEMBER, 2015, THE CROSS OBJECTION OF THE ASSESSEE HAS BECOME INFRUCTUOUS. WE THEREFORE DISMISS THE CROSS OBJECTION OF THE ASSESS EE BEING INFRUCTUOUS. 4. IN THE RESULT, APPEALS OF THE REVENUE AS WELL AS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 /03/2017 . SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 15 /03/2017. D/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-2, JAIPUR. 2. THE RESPONDENT- M/S. EURO JEWELS, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 244 & C.O. NO. 32/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 244/JP/2012 & C.O. NO. 32/JP/2012 M/S. EURO JEWELS, JAIPUR.