A.C.I.T.-1, Agra V. M/s Virendra Kumar & Sons, HUF, Agra

ITA 332/AGR/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62893 (ITAT-AGRA)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-12-2012
• Assessment Year: 1997-1998
• Appeal Filed On: 19-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Assessee Lawyers: P N AGARWAL
• Keywords: Reopening of assessment; Unexplained cash credit; Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 332 & 333/AGRA/2012 ASSTT. YEAR : 1997-98 & 1999-2000 A.C.I.T. 1, AGRA. VS. M/S. VIRENDRA KUMAR & SO NS, HUF, 30/41, CHHIPITOLA, AGRA. (PAN : AACHU 5708 E) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.K. MISHRA, JR. D.R. RESPONDENT BY : SHRI P.N. AGARWAL, ADVOCATE DATE OF HEARING : 10.12.2012 DATE OF PRONOUNCEMENT OF ORDER : 14.12.2012 ORDER PER BHAVNESH SAINI, J.M.: BOTH THE APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST THE ORDER OF LD. CIT(A)-I, AGRA DATED 15.02.2012 FOR THE ASSESSMENT YEARS 1997-98 AND 1999-2000. 2. BRIEFLY, THE BACKGROUND OF FILING OF THE PRESENT DEPARTMENTAL APPEALS IS THAT IN ASSESSMENT YEAR 1997-98, THE AO REOPENED THE ASS ESSEE U/S. 147 OF THE IT ACT AND MADE ADDITION OF RS.7,50,000/- U/S. 68 OF THE I T ACT ON ACCOUNT OF UNEXPLAINED CASH CREDIT AND ALSO MADE ADDITION OF RS.1,30,638/- BY DISALLOWING THE INTEREST ON THE SAME UNEXPLAINED CASH CREDIT. SIMILARLY IN ASSE SSMENT YEAR 1999-2000, THE AO ITA NO. 332 & 333/AGRA/2012 2 REOPENED THE ASSESSMENT U/S. 148 AND MADE THE ADDIT ION OF RS.2,50,000/- U/S. 68 AND ALSO DISALLOWED RS.2,85,374/- INTEREST ON THE S AME UNEXPLAINED CASH CREDIT. 2.1 THE ASSESSEE CHALLENGED THE REOPENING OF ASSESS MENT AS WELL AS ALL THE ABOVE ADDITIONS BEFORE THE LD. CIT(A). THE LD. CIT(A) QUA SHED THE REOPENING OF ASSESSMENT U/S. 147/148 OF THE IT ACT AND DECLARED THE WHOLE PROCEEDINGS AS INVALID. ON MERIT ALSO, THE ABOVE ADDITIONS HAVE BE EN DELETED AND BOTH THE APPEALS OF THE ASSESSEE WERE ALLOWED THROUGH COMMON IMPUGNE D ORDER. THE REVENUE IN BOTH THE DEPARTMENTAL APPEALS, CHALLENGED THE ORDER OF LD. CIT(A) IN QUASHING THE RE-ASSESSMENT PROCEEDINGS U/S. 147/148 OF THE IT AC T AS WELL AS DELETION OF ADDITIONS ON MERIT. 3. THE PRESENT DEPARTMENTAL APPEALS HAVE BEEN FILED IN THE OFFICE OF THE TRIBUNAL ON 19.07.2012. ACCORDING TO THE CBDT INSTR UCTION NO. 03/2011 DATED 09.02.2011, THE DEPARTMENTAL APPEALS WOULD NOT BE F ILED BEFORE THE TRIBUNAL IF THE TAX EFFECT IN THE DEPARTMENTAL APPEALS DID NOT EXCE ED THE MONETARY LIMIT OF RS.3,00,000/-. VIDE CBDT INSTRUCTION NO. 05/2007 DA TED 16.07.2007, IT IS CLARIFIED EARLIER THAT THE TAX WOULD MEAN TAX ONLY EXCLUDING THE INTEREST. IT IS ADMITTED BY THE LD. DR THAT THE TAX EFFECT IN THE DEPARTMENTAL APPE ALS IS BELOW RS.3,00,000/-. NO BOARD CIRCULAR OR AUDIT OBJECTION HAS BEEN RAISED A ND NO CONSTITUTIONAL VALIDITY OF ITA NO. 332 & 333/AGRA/2012 3 ANY PROVISION HAS BEEN CHALLENGED. NO SUBSTANTIAL Q UESTION OF LAW ALSO ARISES IN THE DEPARTMENTAL APPEALS. THEREFORE, BOTH THE DEPARTMEN TAL APPEALS ARE NOT MAINTAINABLE IN THE PRESENT FORM. 4. IN THE RESULT, BOTH THE DEPARTMENTAL APPEALS ARE DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY