The ITO, Ward-2(2), Surat V. Shri Prakash L. Ahiya, Surat

ITA 2509/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0873 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 25-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Keywords: Rejection of books of accounts; Corroborative evidences; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER , ITA. NO.2509/AHD/2013 (ASSESSMENT YEAR:2010-11) INCOME-TAX OFFICER, WARD-2(2), ROOM NO.118, 1 ST FLOOR, AYAKAR BHAVAN, MAJURAGATE, SURAT AP PELLANT VS. SHRI PRAKASH L. AHIYA, 68, JASH TEXTILE MRKET, RING ROAD, SURAT RESPONDENT PAN: ABFPA9881K /BY APPELLANT : SHRI ADITYA SHUKLA, SR. D.R. /BY RESPONDENT : SHRI RAJESH UPADHYAY, A.R. ! '# /DATE OF HEARING : 14.07.2016 ! '# /DATE OF PRONOUNCEMENT : 19.07.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS)-II, SURAT, DATED 06.08.2013 FOR A.Y. 2010-11 ON FOLLOWING GROUNDS. ITA NO.2509/AHD/13 A.Y. 10-11[ITO VS. SHRI PRAKASH L. AHIYA] PAGE 2 (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS FAILED TO APPRECIATE THE FAC TS OF THE CASE AND ERRED IN DELETING THE ADDITION OF RS.21,35,384/- ON ACCOUNT OF REJECTION OF BOOKS OF ACCOUNTS AND ESTIMATION OF GROSS PROFIT AS THE ASSESSEE'S BOOKS OF ACCOUNTS WERE NOT RELIABLE AND SUFFER FROM VARIOUS DEFICIENCIES. (2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS,2,00,000/- ON ACCOUNT OF UNEXPLAINED UNSECURED LOAN RECEIVED FROM THE WIFE AS THE ASSESSEE HAS FAILED TO PROVE THE GENUINENESS OF THE LOAN REFLECTED IN THE BOOKS OF ACCOUNTS. (3) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS FAILED TO APPRECIATE THE FAC TS OF THE CASE AND ERRED IN DELETING THE ADDITION OF RS.2,98,649/- ON ACCOUNT OF DISALLOWANCE OUT OF COMMISSION EXPENSES AS THE ASSESSEE HAS FAILED TO FURNISH EVIDENCES TO SUBSTANTIATE THE CLAIM OF SUCH EXPENSES. (4) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS FAILED TO APPRECIATE THE FAC TS OF THE CASE AND ERRED IN DELETING THE ADDITION OF RS.5,05,790/- ON ACCOUNT OF UNEXPLAINED CASH RECEIPTS AS THE ASSESSEE HAS FAILED TO FURNISH NECESSARY CORROBORATIVE EVIDENCES TO SUBSTANTIATE THE CLAIM. (5) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS FAILED TO APPRECIATE THE FAC TS OF THE CASE AND ERRED IN RESTRICTING THE ADDITION O F RS.2,96,175/- TO RS. 26,614/- ON ACCOUNT OF DISALLOWANCE OUT OF VARIOUS EXPENSES AS THE ASSESSEE HAS FAILED TO FURNISH EVIDENCES TO SUBSTANTIATE THE CLAIM OF SUCH EXPENSES. (6) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS FAILED TO APPRECIATE THE FAC TS OF THE CASE AND ERRED IN RESTRICTING THE ADDITION O F ITA NO.2509/AHD/13 A.Y. 10-11[ITO VS. SHRI PRAKASH L. AHIYA] PAGE 3 RS.1,20,000/- TO RS. 54,000/- ON ACCOUNT OF LOW WITHDRAWALS FOR HOUSEHOLD EXPENSES AS THE ASSESSEE HAS NOT FURNISH EVIDENCES IN RESPECT OF WITHDRAWALS CLAIMED TO HAVE BEEN MADE BY HIS WIFE. 2. BEFORE ME, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NE EDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFO RESAID CBDT CIRCULAR. 2.1 I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APP EAL RAISED BY THE REVENUE, I PRIMA-FACIE FIND THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 ( CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF G IVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS TH E TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECT IVELY TO THE PENDING APPEALS. IN THE PRESENT CASES, SINCE IT IS AN UNDISPUTED FACT THAT ON THE DEMAND WHICH IS IN DISP UTE IN THE APPEAL OF REVENUE, THE TAX EFFECT IS LESS THAN RS.10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUES IN THE PRESE NT APPEAL ARE COVERED BY EXEMPTIONS SPECIFIED IN CLAUS E (8) OF THE CBDT CIRCULAR, I AM OF THE VIEW THAT THE MONETA RY ITA NO.2509/AHD/13 A.Y. 10-11[ITO VS. SHRI PRAKASH L. AHIYA] PAGE 4 LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFOR ESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PR ESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PR ESENT APPEAL OF REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR AN Y REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT W OULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. IN SUCH CIRCUMSTANCES, I DISMISS THE APPEAL OF REVENUE WITH OUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 3. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS THE 19 TH DAY OF JULY, 2016. SD/- (SHAILENDRA KUMAR YADAV) JUDICIAL MEMBER AHMEDABAD: DATED 19/07/2016 TRUE COPY S.K.SINHA ! / COPY OF ORDER FORWARDED TO:- () * / REVENUE 2) / ASSESSEE -)./.01! 2! / CONCERNED CIT 4) 2!- / CIT (A) 5)67 8!019 '019: / / DR, ITAT, AHMEDABAD ;)8 <=> ? / GUARD FILE. BY ORDER / 9 /: .* '019: /