ITO 9(3)(3), MUMBAI V. TERRAIN INFRASTRUCTURE P.LTD, MUMBAI

ITA 26/MUM/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3517 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 02-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J SARAVANAN
• Assessee Lawyers: SUBHASH SHETTY
• Keywords: Additional evidence; Tax effect
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E BE NCH, MUMBAI BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, JUDICIAL MEMBER, / I .TA NO. 26/MUM/2014 ( / ASSESSMENT YEAR: 2010-11 THE ITO - 9(3)(3), AAYAKAR BHAVAN, MUMBAI-40 020 / VS. M/S. TERRAIN INFRASTRUCTURE PVT. LTD., 34, GROUND FLOOR, SHRI DWARKA CHS LTD., PLOT NO. 82, B-2, SARASWATI ROAD, SANTACRUZ (W), MUMBAI-400 054 ./ ./ PAN/GIR NO.AACCT 4970H ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI J. SARAVANAN / RESPONDENT BY: SHRI SUBHASH SHETTY / DATE OF HEARING :04.07.2016 ! / DATE OF PRONOUNCEMENT :04.07.2016 / O R D E R PER C.N. PRASAD, JM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A)-20, MUMBAI DATED 04.10.2013 PERTAINI NG TO ASSESSMENT YEAR 2010-11. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER : ITA NO. 26/M/2014 2 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, THE LD. CIT(A) WAS RIGHT IN DELETI NG THE DISALLOWANCE U/S. 68 OF THE I.T. ACT WITHOUT APPREC IATING THE FACT THAT DURING THE ASSESSMENT PROCEEDINGS THE ASS ESSEE FAILED IN DISCHARGING ITS ONUS TO ESTABLISH AND EXP LAIN THE NATURE AND SOURCE OF THE CASH TRANSACTION CREDITED IN ITS BOOKS OF ACCOUNT? 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) WAS RIGHT IN DELETI NG THE DISALLOWANCE U/S. 68 OF THE I.T. ACT WITHOUT APPREC IATING THE FACT THAT THE ADDITIONAL EVIDENCE ADMITTED BY HIM W AS NOT PRODUCED BEFORE THE ASSESSING OFFICER DURING THE AS SESSMENT PROCEEDINGS? 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) WAS RIGHT IN DELETI NG THE DISALLOWANCE U/S. 68 WITHOUT PROVIDING OPPORTUNITY OF EXAMINATION OF ADDITIONAL EVIDENCE TO THE ASSESSING OFFICER? 3. BEFORE GOING INTO THE MERITS OF THE CASE, WE CON SIDER CBDTS LATEST INSTRUCTIONS VIDE CIRCULAR NO.21/2015 DATED 10/12/2015, THE RELEVANT PORTION OF WHICH READ AS UNDER:- CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007-ITJ (PT) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10TH DECEMBER, 2015 SUBJECT: REVISION OF MONETARY LIMITS FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TR IBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT - MEAS URES FOR REDUCING LITIGATION - REG REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/20 14 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER ITA NO. 26/M/2014 3 CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCO ME-TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HA S BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW TH E MONETARY LIMITS AND CONDITIONS SPECIFIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - S. NO APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMIT S PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECI DED ON MERITS OF THE CASE. 4. IT IS FURTHER CLARIFIED BY THE BOARD IN ITS CIRC ULAR THAT THESE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS AND T RIBUNALS. IT IS ALSO MADE CLEAR THAT PENDING APPEALS BELOW THE MONITORY LIMITS FIXED IN PARA-3 ABOVE MAY BE WITHDRAWN OR NOT PRESSED. 5. IN THE CASE IN HAND, THE TOTAL DEMAND AS PER CIT (A)S ORDER IS LESS THAN THE AMOUNT OF RS. 10,00,000/-, WHICH IS BELOW THE MONETARY LIMITS AS MENTIONED IN CBDT CIRCULAR DATED 10.12.2015 (SUPRA) . FOLLOWING THE SAME, THIS APPEAL OF THE REVENUE IS DISMISSED. ITA NO. 26/M/2014 4 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH JULY, 2016. SD/- SD/- (RAJENDRA) (C.N. PRASAD ) ' / ACCOUNTANT MEMBER $ %' /JUDICIAL MEMBER MUMBAI; (' DATED 4 TH JULY, 2016 . % . ./ RJ , SR. PS !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ) ( ) / THE CIT(A)- 4. ) / CIT 5. *+ ,%%-. , -.! , / DR, ITAT, MUMBAI 6. , /01 / GUARD FILE. / BY ORDER, *% //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI DATE INITIALS 1. DRAFT DICTATED ON: 04.07.2016 SR. PS/PS 2. DRAFT PLACED BEFORE AUTHOR: 04.07.2016 SR. PS/PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER: JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER: JM/AM 5. APPROVED DRAFT COMES TO THE SR. PS/PS: SR. PS/PS 6. ORDER PRONOUNCED ON: SR. PS/PS 7. FILE SENT TO THE BENCH CLERK: 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK: SR. PS/PS 9. DATE ON WHICH FILE GOES TO AR 10. DATE OF DISPATCH OF ORDER: