Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore V. M/s Conc Shade Construction Pvt Ltd , Chikkamangalur

ITA 298/BANG/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2635 (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: 2009-2010
• Appeal Filed On: 01-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G GURUSWAMY
• Keywords: Tax effect
• Section: 10

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 S . 298 & 302 /BANG/201 8 ASSESSMENT YEAR S : 200 9 - 10 & 2013 - 14 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2 (3), BANGALORE. VS. M/S. CONC SHADE CONSTRUCTION PVT. LTD., SOORYA FARM, HALENAHALLI, RAMANAHALLY POST, CHICKAMAGALUR. PAN: AAECC0493L APPELLANT RESPONDENT APPELLANT BY : SHRI G. GURUSWAMY, CIT DR 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 BOTH THESE APPEALS ARE FILED BY THE REVENUE WHICH A RE DIRECTED AGAINST TWO SEPARATE ORDERS OF LD. CIT(A)-11, BANGALORE BOTH DA TED 24.11.2017 FOR ASSESSMENT YEARS 2009-10 AND 2013-14. BOTH THESE A PPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS C OMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS RAISED BY THE REVENUE FOR ASSESSMENT YEAR 2009-10 IN ITA NO. 298/BANG/2018 ARE AS UNDER. 1. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN RELYING ON THE ORDER OF KA RNATAKA HIGH COURT IN THE CASE OF IBC KNOWLEDGE PARK PVT. LTD. W HEN THE ASSESSEE HAS PARTICIPATED IN THE PROCEEDINGS AND HA D NOT CHALLENGED ISSUE OF NOTICES AS DECIDED BY DELHI HIG H COURT IN THE CASE OF CIT VS SAFETAG INTERNATIONAL PVT. LTD. IN 3 32 ITR 622 AND HON'BLE APEX COURT IN THE CASE OF SHRI VIJYABHA I N CHANDRANI IN 357 ITR 713. 2. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CR(A) IS CORRECT IN RELYING ON THE CASE OF SINGHAD TECHNICAL SOCIETY CASE AS THE DECISION DOES NOT RESTRAIN THE AO FROM MAKING ADDITION ONLY ON THE INCRIMINATING MATERIAL AND IT ONLY REFERS THAT SEIZED MATERIAL SHOULD PERTAIN TO THIRD PERSON AND ITA NOS. 298 & 302/BANG/2018 PAGE 2 OF 3 TERMS IT A CONDITION PRECEDENT TO INITIATE PROCEEDI NG AND NOT FOR FINALIZATION OF ASSESSMENT. 3. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN DELETING THE UNEXPLAINED CASE DEPOSIT OF RS.11,94,150/- WHEREAS IT REMAINS UNSUBSTANTIATED A ND WITHOUT SATISFACTORY EXPLANATION. 4. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN DELETING THE ESTIMATED PROFIT OF RS.43,482/- WITHOUT APPRECIATING THE FACT THAT BOOKS WERE NOT P RODUCED AND CASE LAW RELIED IS DISTINGUISHED. 3. SIMILARLY THE GROUNDS RAISED BY THE REVENUE FOR ASSESSMENT YEAR 2013-14 IN ITA NO. 302/BANG/2018 ARE AS UNDER. 1. WHETHER ON THE FACTS AND THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS CORRECT IN DELETING THE ESTIMATED PROFIT OF RS.41,60,448/- WITHOUT APPRECIATING THE FACT THAT BOOKS WERE NOT P RODUCED AND CASE LAW RELIED IS DISTINGUISHED. 4. AT THE VERY OUTSET, IT WAS SUBMITTED BY THE LEAR NED AR OF THE ASSESSEE THAT IN THESE APPEALS, THE TAX EFFECT IS BELOW RS. 20 LA CS PER YEAR AND THEREFORE, AS PER THE RECENT CBDT INSTRUCTIONS AS PER CIRCULAR NO. 3/2018 DATED 11.07.2018, THESE TWO APPEALS OF THE REVENUE ARE NO T MAINTAINABLE. LEARNED DR OF THE REVENUE HAD NOTHING TO SAY. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D AR OF THE ASSESSEE AND WE ALSO FIND THAT IN THESE APPEALS, THE TAX EFF ECT IS BELOW RS. 20 LACS AND THEREFORE, AS PER THE RECENT CBDT INSTRUCTIONS AS PER CIRCULAR NO. 3/2018 DATED 11.07.2018, THESE TWO APPEALS OF THE R EVENUE ARE NOT MAINTAINABLE. ACCORDINGLY, THESE TWO APPEALS OF TH E REVENUE ARE DISMISSED BECAUSE OF LOW TAX EFFECT. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (SUNIL KUMAR YADAV) (ARUN KUMAR GAROD IA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 5 TH NOVEMBER, 2018. /MS/ ITA NOS. 298 & 302/BANG/2018 PAGE 3 OF 3 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.