Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore V. Shri K G Rajesh , Chikkamangalur

ITA 295/BANG/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2637 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 01-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G GURUSWAMY CIT DRP
• Keywords: Unexplained cash credit; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 295 /BANG/201 8 ASSESSMENT YEAR : 20 10 - 11 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2 (3), BANGALORE. VS. SHRI K.G. RAJESH, KODUVALLI VILLAGE, ANOOR POST, CHICKAMAGALUR. PAN: ADCPR9558B APPELLANT RESPONDENT APPELLANT BY : SHRI G. GURUSWAMY, CIT - DRP RESPONDENT BY : SHRI RAVISHANKAR, ADVOCATE DATE OF HEARING : 05. 11 .2018 DATE OF PRONOUNCEMENT : 05 . 11 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT (A)-11, BANGALORE DATED 24.11.2017 FOR ASSE SSMENT YEAR 2010-11. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN CONSIDERING SIX YEARS FROM DAT E OF REOPENING I.E. 15.09.2014 WHEN THE ACT PROVIDED FROM DATE OF SEARC H. 2. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN RELYING ON THE ORDER OF KARNAT AKA HIGH COURT IN THE CASE OF IBC KNOWLEDGE PARK PVT. LTD. WHEN THE A SSESSEE HAS PARTICIPATED IN THE PROCEEDINGS AND HAD NOT CHALLEN GED ISSUE OF NOTICES AS DECIDED BY DELHI HIGH COURT IN THE CASE OF CIT VS SAFETAG INTERNATIONAL PVT. LTD. IN 332 ITR 622 AND HON'BLE APEX COURT IN THE CASE OF SHRI VIJYABHAI N CHANDRANI IN 357 ITR 713. 3. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT (A) IS CORRECT IN DELETING THE ADDITION OF AGRICULT URAL INCOME WITHOUT APPRECIATING THE FACT THAT NO EVIDENCES WERE PRODUC ED BEFORE THE AO AND THE AO WAS NOT AFFORDED AN OPPORTUNITY IN ACCOR DANCE WITH RULE 46A. 4. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT (A) IS CORRECT IN DELETING THE ADDITION OF UNEXPLAI NED CREDIT WITHOUT APPRECIATING THE FACT THAT NO EVIDENCE WAS PRODUCED BEFORE THE AO AND THE AO WAS NOT AFFORDED AN OPPORTUNITY IN ACCOR DANCE WITH RULE 46A. 5. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN DELETING THE ADDITION OF RS.4, 17,800/- ON ACCOUNT ITA NO. 295/BANG/2018 PAGE 2 OF 2 OF UNEXPLAINED CREDIT WITHOUT APPRECIATING THE FACT ON RECORD. 6. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN DELETING THE ADDITION OF RS.8, 00,000/- ON ACCOUNT OF UNEXPLAINED CREDIT WITHOUT APPRECIATING THE FACT S ON THE RECORD AND SOLELY RELYING ON CASE LAW WHICH IS NOT RELEVANT TO THE FACT OF THE CASE. 3. AT THE VERY OUTSET, IT WAS SUBMITTED BY THE LEAR NED AR OF THE ASSESSEE THAT IN THIS APPEAL, THE TAX EFFECT IS BELOW RS. 20 LACS AN D THEREFORE, AS PER THE RECENT CBDT INSTRUCTIONS AS PER CIRCULAR NO. 3/2018 DATED 11.07.2018, THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE. LEARNED DR OF THE REVENUE HAD NOTHING TO SAY. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D AR OF THE ASSESSEE AND WE ALSO FIND THAT IN THIS APPEAL, THE TAX EFFECT IS BELOW RS. 20 LACS AND THEREFORE, AS PER THE RECENT CBDT INSTRUCTIONS AS P ER CIRCULAR NO. 3/2018 DATED 11.07.2018, THIS APPEAL OF THE REVENUE IS NOT MAINT AINABLE. ACCORDINGLY, THIS APPEAL OF THE REVENUE IS DISMISSED BECAUSE OF LOW T AX EFFECT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (SUNIL KUMAR YADAV) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT ME MBER BANGALORE, DATED, THE 5 TH NOVEMBER, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.