The Assistant Commr. of Income Tax, Morbi Circle, RAJKOT-GUJARAT V. M/s Motto Tiles Pvt. Ltd., Morbi

ITA 306/RJT/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3496 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 18-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUHAS MISTRY
• Keywords: Income from undisclosed sources; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT ( CONVENED THROUGH VIRTUAL COURT ) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ( . . ) ./ I.T.A. NO. 306/RJT/2016 ( / ASSESSMENT YEAR : 2012-13) ASSISTANT COMMISSIONER OF INCOME TAX MORBI CIRCLE, MORBI, AAYAKAR BHAVAN, 2 ND FLOOR, ROOM NO. 206, RACE COURSE RING ROAD, RAJKOT / VS. M/S. MOTTO TILES PVT. LTD. 8-A, N. H. SARTANPAR ROAD, AT- MAKANSAR, TAL.-MORBI ./ ./ PAN/GIR NO. : AAGCM3252M ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SUHAS MISTRY, SR. D.R. / RESPONDENT BY : SHRI VIMAL DESAI, A.R. ! / DATE OF HEARING 11/11/2020 '#$% ! / DATE OF PRONOUNCEMENT 12/11/2020 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-3, RAJKOT (CIT(A) IN SHORT), DATED 08.0 6.2016 ARISING IN THE ASSESSMENT ORDER DATED 28.03.2015 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING A.Y. 2012-13. ITA NO. 306/RJT/16 [ACIT VS. M/S. MOTTO TILES PVT. LTD.] A.Y. 2012-13 - 2 - 2. THE SUBSTANTIVE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.700,00,000/- MADE U/ S.68 OF THE I.T. ACT, 1961 IN RESPECT OF INTRODUCTION OF UNACCOUNTED MONEY UNDER THE GUISE OF SHARE SUBSCRIPTION MONEY. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.1,40,000/- MADE ON A CCOUNT OF ESTIMATED COMMISSION PAID FOR GETTING ACCOMMODATIVE ENTRIES H OLDING THAT SINCE THE ADDITION IN RESPECT OF UNACCOUNTED INCOME INTRODUCE D IN THE BOOKS OF ACCOUNTS UNDER THE GUISE OF SHARE SUBSCRIPTION MONEY MADE AT RS.70,00,000/-HAS BEEN DELETED, THE ADDITION MADE ON ACCOUNT OF ESTIMATED COMMISSION AT RS.1,40,000/- FOR GETTING SUCH ACCOMMODATIVE ENTRIES DOES NOT SUR VIVE. 3. ON THE FACTS OF THE CASE AND IN LAW, THE LD. C. I.T.(A) OUGHT TO HAVE UPHELD THE ASSESSMENT ORDER OF THE A.O. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 279/MISC/ M-93/2018-ITJ DT. 20/08/2019 HAS OBSERVED THAT CIRCULAR NO.17/201 9 DATED 08/08/2019 RELATING TO ENHANCEMENT OF MONETARY LIMI TS IS ALSO APPLICABLE TO ALL PENDING APPEALS. AS PER AFORESAID CIRCULAR READ WITH INSTRUCTION, ALL PENDING APPEALS FILED BY REVE NUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION W HERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMI T WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, ITA NO. 306/RJT/16 [ACIT VS. M/S. MOTTO TILES PVT. LTD.] A.Y. 2012-13 - 3 - IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (PRADIP KUMA R KEDIA) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD: DATED 12/11/2020 TRUE COPY S. K. SINHA / COPY OF ORDER FORWARDED TO:- (. / REVENUE 2. / ASSESSEE *. +,- . / CONCERNED CIT 4. . - / CIT (A) 1. 234 5 5,-6 ! ,-%6 78+ / DR, ITAT, AHMEDABAD 9. 4:; < / GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJKOT THIS ORDER PRONOUNCED ON 12/11/2020