The ITO, Ward-12(1), Ahmedabad V. Shri Madanlal C. Maliwal,HUF, Ahmedabad

ITA 257/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9902 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 30-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER & SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO: 257/AHD/2012 (ASSESSMENT YEAR: 2008-09) THE I.T.O., WARD-12(1), AHMEDABAD V/S SHRI MADANLAL C. MALIWAL (HUF) PROP OF M/S. SHREE KRISHAN SALES CORPORATION AND M/S. ASHA ENTERPRISES 222/6124, OPP NAGARWELL HANUMAN TEMPLE, RAKHIAL, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AADHM 3775P APPELLANT BY : SHRI DINESH SINGH, SR. D.R . RESPONDENT BY : NONE ( )/ ORDER DATE OF HEARING : 08 -01-20 16 DATE OF PRONOUNCEMENT : 11-01-2016 PER ANIL CHATURVEDI, ACCOUNTANT MEMBER 1. THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-XX, AHMEDABAD DATED 21.11.2011 FOR A.Y. 2008-09. ITA NO. 257/ AHD/2012 . A.Y. 2008-09 2 2. THE GROUNDS RAISED BY THE REVENUE IN THE PRESENT AP PEAL READS AS UNDER:- 1.THE LD. CIT(A)-XX, AHMEDABAD HAS ERRED IN LAW AND IN FACTS IN DELETING THE ADDITION OF RS.L1,34,674/- MADE U/S.68 OF I.T. ACT, AS WELL AS THE INTEREST PAYMENT IN RESPECT OF UNSECURED LOANS. IN DOING SO, THE ID. CIT(A)-XX, AHMEDABAD HAS ERRED IN LAW AND IN FACTS IN RELYING ONLY ON THE SUBMISSION OF THE ASSESSEE AND AT THE SAME T IME IGNORING THE FINDINGS OF THE ASSESSING OFFICER. EVEN THOUGH THE ASSESSEE HAD FUR NISHED EVIDENCE OF IDENTITY OF THE CREDITORS YET, THEIR CREDITWORTHINESS WAS NOT ESTAB LISHED. 1.2 THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN HO LDING THAT THE CREDIT WORTHINESS OF THE CREDITORS WAS ESTABLISHED ON THE GROUND THAT THE PA YMENTS WERE MADE BY THEM BY CHEQUES AND THAT, SUCH PAYMENTS HAD BEEN CONFIRMED BY THEM, AND THAT THEY WERE ALL ASSESSED TO TAX, WITHOUT TAKING INTO CONSIDERATION THE FACT THA T THE INCOME SHOWN IN THE RETURNS BY SUCH CREDITORS WERE SIMPLY NOT SUFFICIENT FOR THEM TO MAKE SUBSTANTIAL PAYMENTS TO THE ASSESSEE IN THE FORM OF LOANS AND DESPITES. 1.3 THE CIT(A) HAS THUS FAILED TO TAKE INTO CONSIDE RATION THE SURROUNDING FACTS AND CIRCUMSTANCES OF THE CASE AND HAS SIMPLY GONE BY ME RE TECHNICALITIES OF THE CASE. 1.4 THE ADDITION OF THE SUM OF RS.L1,34,674/- OF TH E IT ACT MADE U/S.68 BEING UNEXPLAINED LOANS AND DEPOSITS MAY BE RESTORED AND THE DISALLOW ANCE OF THE INTEREST CLAIMED TO HAVE BEEN MADE AGAINST SUCH LOANS, MAY BE SUSTAINED. 3. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REV ENUE, WE FIND THAT REVENUE IS AGGRIEVED BY DELETION OF ADDITIONS OF RS . 11,34,674/-, THE TAX EFFECT OF WHICH IS BELOW RS. 10 LACS. AS PER THE AN NOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRC ULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIE F GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFEC T, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRES ENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE THE TAX EFFECT IS ITA NO. 257/ AHD/2012 . A.Y. 2008-09 3 LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MAT ERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESEN T APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRC ULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTI ONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REV ENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 11 - 01 - 201 6. SD/- SD/- (S.K. YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHM EDABAD