ACIT, Kota V. M/s. Ramlal & Sons (HUF), Kota

ITA 260/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5369 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 11 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 03-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY MALIK CIT DHK
• Assessee Lawyers: MADHUKAR GARG
• Keywords: Business income; Bad and doubtful debts; Tax effect

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 YFYR DQEKJ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] Y S[KK LNL; DS LE{K BEFORE: SHRI LALIET BKUMAR, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 260/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 THE ASSTT. COMMISSIONER OF INCOME TAX , CIRCLE-1, KOTA CUKE VS. SHRI RAMLAL & SONS (HUF) B-25, NEW GRAIN MANDI, BUNDI LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AADHR 9681 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MADHUKAR GARG (C.A.) JKTLO DH VKSJ LS@ REVENUE BY :S HRI AJAY MALIK (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15.03.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 16 /03/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A), KOTA DATED 22.01.2014 WHEREIN THE REVENUE H AS TAKEN FOLLOWING GROUNDS OF APPEAL: (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS.25,74,600/- ON A CCOUNT OF CLAIM OF BAD DEBTS, BY HOLDING THAT THESE BAD DEBTS ARE ALLOWA BLE U/S 36 AGAINST THE UNDISCLOSED ADVANCES DECLARED AS ADDITIONAL INCOME (INCOME FROM OTHER SOURCES) AT THE TIME OF SURVEY U/S 133A(1). (2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN HOLDING THAT THE ADDITIONAL INCOME DECLARED AT R S. 1,52,24,960/- REPRESENTS THE REGULAR BUSINESS INCOME , IGNORING ALTOGETHER THAT THIS INCOME WAS EARNED BY THE ASSESSEE OUTSIDE THE REGUL AR BOOKS OF ACCOUNT. ITA NO. 260/JP/14 ACIT, CIRCLE-1, KOTA VS. SHRI RAMLAL &Y SONS (HUF) BUNDI 2 2. 2. AT THE OUTSET, LD. AR SUBMITTED THAT THE SUBJEC T APPEAL OF REVENUE IS NOT MAINTAINABLE IN LIGHT OF CIRCULAR NO . 21 DATED 10.12.2015 ISSUED BY THE CBDT. 3. WE HAVE HEARD LD AR AND THE DR. FROM PERUSAL OF MATERIAL AVAILABLE ON RECORD IN RESPECT OF THE ABOVE APPEAL, IT IS OB SERVED THAT THE DEMAND/ TAX EFFECT IN THIS REVENUE APPEAL IS NOT EXCEEDING RS . 10 LACS. UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I.T. ACT, CBDT HAS RE CENTLY ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015(F.NO.279/MISC. 142/2 007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFEC T DOES NOT EXCEED RS.10 LACS. THE CIRCULAR SPECIFICALLY MENTI ONS THAT IT WILL BE APPLICABLE TO ALL PENDING APPEALS ALSO. 3.1. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIR ECTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING RS. 10 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES AT THE TIME OF HEARING . 3.2 THE REVENUE APPEAL IS NOT COVERED BY ANY EXCE PTIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THE DEPARTMENTAL APPEAL DOES NOT EXCEED THE LIMIT OF RS. 10 LACS AS SET OUT BY CBDT, SUCH APPEALS ARE NOT MAINTAINABLE. ACCORDINGLY, THE LD. DR AGREE TH AT THIS APPEAL OF THE ITA NO. 260/JP/14 ACIT, CIRCLE-1, KOTA VS. SHRI RAMLAL &Y SONS (HUF) BUNDI 3 DEPARTMENT MAY BE TREATED AS NOT PRESSED/WITHDRAWN AND DISMISSED IN VIEW OF THE CBDT CIRCULAR. IN THE RESULT, THE APPEAL FILED BY THE R EVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 /0 3/2016. SD/- SD/- ( LALIET KUMAR ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 16 / 03 /2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT-THE ACIT, CIRCLE-1, KOTA 2. THE RESPONDENT- SHRI RAMLAL & SONS, (HUF), BUNDI 3. THE CIT(A) KOTA 4. THE CIT KOTA 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO .260 /JP/114) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR