ACIT, New Delhi V. Sh. K. Narsimha, Delhi

ITA 2693/DEL/2010

• Counselvise Citation: 269320114 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 12-10-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 03-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANT MISHRA
• Assessee Lawyers: SHAILENDER GUPTA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI R.P. TOLANI AND HSRI A.N. PAHUJA ITA NO. 2693/DEL/2010 ASSTT. YR: 2007-08 ACIT, CEN. CIRCLE-3 VS. SHRI K. NARSIMHA, NEW DELHI. 33/34, RAJPUR ROAD, DELHI. PAN/GIR NO. ADZPK3188M (APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI JAYANT MISHRA DR ASSESSEE BY : SHRI SHAILENDER GUPTA ADV. O R D E R PER R.P. TOLANI, J.M : THIS IS REVENUES APPEAL AGAINST CIT(A)S ORDER DAT ED 2-3-2010 RELATING TO A.Y. 2007-08. FOLLOWING GROUNDS ARE RAI SED 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE CIT(A) HAS ERRED IN DELETING THE ADDITION MADE UNDER THE HEAD BROKERAGE INCOME AMOUNTING TO RS. 457500/- MADE BY THE AO. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF CASH DEPOSIT IN THE BANK OF ASSESSEE AMO UNTING TO RS. 1,50,000/- TREATING THE AMOUNT WAS OUT OF INCOM E FROM AGRICULTURE WHERE THE ASSESSEE WAS NEITHER OWING AG RICULTURE LAND NOR ENGAGE IN AGRICULTURAL ACTIVITY NOR HAD DE CLARED AGRICULTURAL INCOME IN HIS RETURN OF INCOME. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT(A) HAS ERRED IN TREATING THE CASH DEP OSIT AMOUNTING TO RS. 2,00,000/- IN THE BANK ACCOUNT HEL D BY 2 ASSESSEES FATHER (INITIALLY DENIED BY FATHER) AND ALSO TREATING THE SAID ALLEGED RECEIPT AS AGRICULTURAL INCOME OF THE ASSESSEE. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT(A) HAS ERRED IN TREATING THE CASH DEP OSIT AMOUNTING TO RS. 2,00,000/- IN THE BANK ACCOUNT HEL D BY ASSESSEES WIFE SMT. K. MADHVI AS OUT OF AGRICULTUR AL INCOME OF THE ASSESSEE. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET SUBMITTED THAT THE TAX EFFECT INVOLVED IN REVENUES APPEAL IS RS. 1,89,548 /- I.E. BELOW LESS THAN RS. 3 LACS AND THEREFORE IN VIEW OF CBDT INSTRUCTION, T HE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AND MAY BE REJECTED AS SUCH. 3. LEARNED DR ON THE OTHER HAND, RELIED ON THE ORDE R OF AO. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE MATERIAL AVAILABLE ON RECORD. IT IS NOT DISPUTED THAT THE T AX EFFECT INVOLVED IN REVENUES APPEAL IS LESS THAN RS. 3 LACS. AS PER CB DT INSTRUCTION NO. 1979 DATED 27-3-2000; INSTRUCTION NO. 2 OF 2005 DATED 2 4-10-2005; AND RECENT INSTRUCTION NO. 33/2011[F.NO.279/MISC.-142/2007-ITJ ] DATED 9-2-2011, DEPARTMENTAL APPEALS BEFORE THE ITAT WOULD NOT BE MAINTAINABLE IF THE TAX EFFECT IS BELOW RS. 3 LACS. THUS IN VIEW OF CBDT IN STRUCTIONS, REFERRED TO ABOVE, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE. IN ARRIVING AT SUCH CONCLUSION WE ARE ALSO FORTIFIED BY THE RATIO OF DE CISIONS IN THE FOLLOWING CASES: 3 (1) CIT VS. PRADEEP KUMAR GUPTA (2007) 207 CTR (DEL) 11 5; (2) ACIT VS. SATISH CHAND JAIN (2006) 10 SOT 383 (DEL.) ; (3) ACIT VS. DOON VALLEY MOTORS (2006) 10 SOT 525 (DEL. ); (4) JCIT VS. DEV RAJ AGARWAL (2005) 92 TTJ (LUCKNOW) 43 6; (5) ITA NO. 3839/D/04 & C.O. 28/DEL/07 ITO VS. M/ S M.J. WARE HOUSING (P) LTD.& VICE VERSA DATED 31-8-2007. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 12-10-2011. SD/- SD/- (A.N. PAHUJA ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 12-10-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR