ITO, Meerut V. M/s. G.C. Goel & Family, Meerut

ITA 3235/DEL/2010

• Counselvise Citation: 323520114 RSA 2010
• Duration Of Justice: 4 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 19-02-2015
• Assessment Year: 1999-2000
• Appeal Filed On: 01-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDRAKAR
• Keywords: Gift; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : C NEW DELHI BEFORE S MT. DIVA SINGH, J.M. AND SHRI J. SUDHAKAR REDDY, A.M. ITA NO. 3235 / DEL/20 1 0 ASSESSMENT YEAR : 20 10 - 11 ITO, WARD 1(2) VS. M/S G.C.GOEL & FAMILY MEERUT A 128, T.P.NAGAR, MEERUT (UP) CROSS OBJECTION NO.365/DEL/2014 ( IN ITA NO. 3235/ DEL/20 10) ASSESSMENT YEAR : 1999 - 2000 M/S G.C.GOEL & FAMILY VS. ITO, WARD 1(2) MEERUT MEERUT (APPELLANT) (RESPONDENT ) APPELLANT BY : - SH. J.P.CHANDRAKAR, SR.D.R. RESPONDENT BY : - NONE . O R D E R PER BENCH THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF THE LD.CIT(APPEALS), MEERUT DT. 27.4.2010 PERTAINING TO THE ASSESSMENT YEAR 1999 - 2000 ON THE FOLLOWING GROUNDS. 1. THE LD. CIT(A) HAS ERRED IN LAW AND UNDER THE CIRCUMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS.9,25,000/ - MADE ON ACCOUNT OF UNEXPLAINED GIFTS FROM SHRI SANJAY MOHAN AGARWAL AND OTHERS WITHOUT APPRECIATING THE FINDING OF THE A.O. THAT THE ASSESSEE FAILED TO PROVE THE IDENTITY, CREDIT WORTHINESS OF THE DONOR AND GENUINENESS OF THE TRANSACTION. 2. THE CIT(A) HAS ERRED IN LAW AND UNDER THE CIRCUMSTANCES OF THE CASE IN DELETING T HE ADDITION OF RS.2,00,000/ - MADE ON ACCOUNT OF UNEXPLAINED AND UNAPPROVED LOAN FROM SHRI POORAN SINGH WITHOUT APPRECIATING THE FINDING OF THE A.O. THAT THE ASSESSEE FAILED TO PROVE THE IDENTITY, CREDIT WORTHINESS OF THE DONOR AND GENUINENESS OF THE TRA NSACTION. 2 3. IN THE FACTS & CIRCUMSTANCES OF THE CASE, THE ORDER OF THE LD.CIT(A) MAY BE SET ASIDE AND THAT OF THE A.O. BE RESTORED. 2. THE ASSES SEE HAS FILED A CROSS OBJECTION ON THE FOLLOWING GROUND. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE ORDER OF THE LD.CIT(A) IN CONFIRMING THE ACTION OF THE A.O. U/S 147/1`48 OF THE ACT IS ARBITRARY, ERRONEOUS AND ILLEGAL AND MUST BE QUASHED. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. LD.D.R. ON A QUERY FROM THE BENCH VEHEMENTLY CONTENDED THAT THE TAX EFFECT IN THE CASE ON HAND IS MORE THAN THE LIMIT PRESCRIBED BY THE BOARD AT THE TIME OF FILING OF THE RETURN AND THAT THE FRESH CIRCULAR OF THE BOARD CLEARLY MENTIONS THAT THE TAX EFFECT LIMIT OF RS.4 LAKHS IS PROSPECTIVE IN NATURE AND HENCE THE LIMITS PRESCRIBED IN THE CIRCULAR CANNOT BE APPLIED TO APPEALS FILED FOR THE EARLIER ASSESSMENT YEAR I.E. A.Y. 2010. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE TRIBUNAL, IN THE CASE OF DCIT VS. SUSHILA SARAOGI (2014) (11) TMI 294 ITAT KOLKATA, AFTER CONSIDERING THE PRECEDENTS ON THE SUBJECT, HELD THAT THE INSTRUCTION NO.5/14, ISSUED BY THE CBDT ON 10.7.2014 IS APPLICABLE TO THE PENDING APPEALS. THE T RIBUNAL FOLLOWED THE PROPOSITION LAID DOWN IN THE JUDGEMENTS OF VARIOUS HIGH COURTS, INCLUDING THE TWO JUDGEMENTS OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. M/S PS JAIN & CO. IN ITA 179/1991 DT. 2.8.2010 AND IN THE CASE OF CIT VS. DELHI RAC E CLUB LTD. DT. 3.3.2011. WE RESPECTFULLY FOLLOW THE CO - ORDINATE BENCH ORDER. IN THE INSTANT CASE, AS THE TAX EFFECT BEING BELOW RS. 4 LACS, WE WITHOUT GOING INTO THE ISSUE ON MERIT, DISMISS THE APPEAL OF THE REVENUE IN LIMINE AS NOT MAINTAINABLE. IT IS TO BE MENTIONED THAT THE LD.DR WAS UNABLE TO POINT OUT ANY EXCEPTIONAL CIRCUMSTANCES, MENTIONED IN BOARD INSTRUCTION NO.5 OF 2014 THAT HAVE LED TO FILING OF THIS APPEAL, DESPITE THE FACT OF THE MONETARY LIMIT BEING BELOW THE PRESCRIBED LIMIT. 3 6. IN THE RESULT THE REVENUE S APPEAL STANDS DISMISSED. SINCE WE HAVE DISMISSED THE REVENUE S APPEAL , THE ASSESSEE S C.O. HAS BECOME INFRUCTUOUS AND IS DISMISSED AS SUCH. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH MARCH, 2015 . SD/ - SD/ - ( DIVA SINGH ) ( J. SUDHAKAR REDDY ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: THE 25 TH MARCH, 2015 *MANGA COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR