ACIT, Kota V. SHIV EDIBLES LTD., Kota

ITA 321/JPR/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9732 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 01-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: F REHMAN DHK
• Keywords: Rejection of books of accounts; Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES , JAIPUR JH HKKXPUN] YS[KK LNL; ,O JH DQY HKKJR] U;KF;D L NL; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI KUL BHAR AT, JM VK;DJ VIHY LA-@ ITA NO. 321/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 THE ACIT CIRCLE- 1, KOTA CUKE VS. M/S. SHIV EDIBLES LTD. 237, TALWANDI, KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAICS 0274 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY :SHRI R.A. VERMA, ADDL. CIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI F. REHMAN, ADVOCATE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 02/03/2017 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 02/03/2017 VKNS'K@ ORDER PER BHAGCHAND, AM THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), KOTA DATED 22-01-2015 FOR THE ASSESSMENT Y EAR 2010-11 RAISING THEREIN FOLLOWING GROUNDS OF APPEAL. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) HAS ERRED IN:- (I) DELETING THE TRADING ADDITION OF RS. 24,75,535/ - OUT OF ADDITION OF RS. 49,51,070/- MADE BY AO SINCE THE LD. CIT(A) HAS CONFIRMED REJECTION OF BOOKS OF ACCOUNTS OF THE ASSESSEE BY AO U/S 145(3) OF THE ACT AND HAS NOT GI VE ANY ITA NO. 321/JP/2015 THE ACIT, CIRCLE- 1, KOTA VS. M/S. SHIV EDIBLES LTD ., KOTA . 2 REASON FOR REDUCING THE TRADING ADDITION MADE BY AO TO ONE- HALF. (II) DELETING THE ADDITION OF RS. 2,58,966/- MADE B Y AO BY DISALLOWING REPAIR WORK EXPENSES OF BARDANA A ND SUTLI BY SHIFTING THE ONUS ABOUT GENUINENESS OF THE SE EXPENSES FROM THE ASSESSEE TO THE AO. (III) DELETING THE ADDITION OF RS. 2,37,161/- MADE BY AO ON ACCOUNT OF DISALLOWANCE U/S 40(A)(IA) OF THE ACT SINCE THE ASSESSEE HAD ITSELF CLAIMED THESE EXPENSE S DURING THE YEAR UNDER CONSIDERATION AND NEVER PLEADED BEFO RE AO THAT THESE EXPENSES PERTAINED TO THE PRECEDING YEAR . 2.1 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAN D/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 10.00 LA CS . UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I T ACT, CBDT HAS REC ENTLY ISSUED CIRCULARNO.21 OF 2015 DATED 10.12.2015(F NO. 279/MI SC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS.10 LACS. THE C IRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PEN DING APPEALS. 2.2 SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIRE CTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS LESS THAN 10 LACS SHOULD BE EITHER WITHDR AWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. ITA NO. 321/JP/2015 THE ACIT, CIRCLE- 1, KOTA VS. M/S. SHIV EDIBLES LTD ., KOTA . 3 2.3 THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEP TIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DIS PUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY C BDT FOR THE APPEAL THE SAME IS NOT MAINTAINABLE IN VIEW OF FORE GOINGS. AC CORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHD RAWN. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 /03/2 017. SD/- SD/- DQY HKKJR HKKXPUN (KUL BHARAT) ( BHAGCHAND) U;KF;D LNL; / JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 02 /03/ 2017 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT,CIRCLE- 1, KOTA 2. IZR;FKHZ@ THE RESPONDENT- M/S. SHIV EDIBLES LTD. , KOTA 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 321/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR