ITO 10(2)(4), MUMBAI V. SUPER GOLD PROPERTIES P.LTD, MUMBAI

ITA 3298/MUM/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0993 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2015
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 08-05-2014
• Court: TRIBUNAL
• Department Lawyers: NEELIMA V NADKARNI
• Keywords: Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO. 3298/M/2014 (AY:2005 - 2006 ) INCOME TAX OFFICER - 10(2)(1), 431, AAYAKAR BHAVAN, 4 TH FLOOR, M.K. MARG, MUMBAI 400 02. / VS. M/S. SUPERGOLD PROPERTIES PVT LTD, R.NO.2, MUNIR BASHIR COLONY, GHATKOPAR WEST, MUMBAI - 86. ./ PAN : AAHCS9942F ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : MS. NEELIMA V. NADKARNI, DR / RESPONDENT BY : NONE / DATE OF HEARING : 02.07.2015 / DATE OF PRONOUNCEMENT : 02.07.2015 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 8.5.2014 IS AGAINST THE ORDER OF THE CIT (A) - 22, MUMBAI DATED 24.3.2014. IN THIS APPEAL, REVENUE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT (A0 ERRED IN DELETING ADDITION OF RS. 10 ,00,000/ - MADE UNDER U/S 68 OF THE ACT IN RESPECT OF SHARE APPLICATION MONEY WITHOUT APPRECIATING THE FACT THAT ADDITION WAS BASED ON SPECIFIC INFORMATION PROVIDED BY THE INVESTIGATION WING OF INCOME TAX DEPARTMENT THAT THE INVESTOR COMPANIES HAD ISSUED CH EQUES TOWARDS THE ALLEGED SHARE APPLICATION MONEY IN RETURN OF CASH. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT (A) ERRED IN NOT APPRECIATING THE FACT THAT THE ASSESSEE HAS F AILED TO DISCHARGE THE ONUS CAST UPON IT TO PROVE THE CREDIT ENTRIES OF SHARE APPLICATION MONEY AS REQUIRED UNDER THE STATUTE. 2. IN THIS APPEAL, THE REVENUE CHALLENGED THE CIT (A)S DECISION IN DELETING THE ADDITION OF RS. 10,00,000/ - MADE BY THE AO U/S 68 OF THE IT ACT. THE TAX EFFEC T FOR THE PRESENT APPEAL IS LESS THAN RS. 4 LAKHS AND ACCORDING TO INSTRUCTION NO.5/2008, DATED 15.5.2008 OF THE CBDT, NO APPEAL SHOULD BE FILED BY THE DEPARTMENT BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS. 4 LAKHS. IT IS ALSO HELD BY THE HONB LE BOMBAY HIGH COURT IN THE FOLLOWING CASES THAT THE INSTRUCTIONS OF THE CBDT DESCRIBING THE LIMIT TO THE TAX EFFECT WOULD BE APPLICABLE TO THE PENDING APPEALS ALSO. (I) CIT VS. SMT. VIJAYA KAVEKAR [(2013) 30 TAXMANN.COM 412], BOMBAY HIGH COURT (II) CIT VS. MADHUKA R INAMDAR [(2009) 185 TAXMAN 101], BOMBAY HIGH COURT 3. LD DR DID NOT CONTROVERT TO THE FACT THAT THE TAX EFFECT IN THE PRESENT APPEAL IS LESS THAN RS. 4 LAKHS. 4. IN THIS VIEW OF THE SITUATION, APPEAL FILED BY THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TA X EFFECT. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND JULY, 2015 IMMEDIATELY AFTER COMPLETION OF HEARING. SD/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 2. 7 .2015 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI