The ITO, Ward-3(3)(13), Ahmedabad V. Sompura Moorti Art, Ahmedabad

ITA 334/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7876 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 10-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH SINGH
• Keywords: Audit objection; Tax effect
• Section: 131

Judgement Text

ITA NO. 334/AHD/2016 ITO VS. SOMPURA MOORTI ART ASSESSMENT YEAR: 2011-12 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] ITA NO. 334/AHD/2016 ASSESSMENT YEAR: 2011-12 INCOME TAX OFFICER ..................APPELL ANT WARD 3(3)(13), AHMEDABAD VS. SOMPURA MOORTI ART ...........................RESPONDENT 3, BALESHWAR AVENUE, SG ROAD, BODAKDEV, AHMEDABAD-380 054 [PAN : ABCFS 3974 N] APPEARANCES BY: SAURABH SINGH FOR THE APPELLANT GAURAV NAHTA FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 13.07.2018 DATE OF PRONOUNCING THE ORDER : 16.07.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 05.09.2015, PASSED BY THE LEARNED C IT(A)-12, AHMEDABAD FOR THE ASSESSMENT YEAR 2011-12, ON THE FOLLOWING GROUNDS: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS I N RESTRICTED THE ADDITION TO RS.10,00,000/- OUT OF TOTAL ADDITION OF RS.48,55,90 7/- MADE ON ACCOUNT OF EXCESS STOCK FOUND DURING THE SURVEY PROCEEDINGS. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS BY NOT APPRECIATING THAT DURING SURVEY PROCEEDINGS EXCESS STOCK OF RS.48,59,904/- W AS FOUND AND SHRI RAJESH SOMPURA, ONE OF THE PARTNER OF THE FIRM CATE GORICALLY CONFIRMED IN HIS STATEMENT RECORDED ON OATH U/S 133A(3)(III) OF THE ACT ON 21.04.2010 AND U/S 131 OF THE ACT ON 12.08.2010. 2. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2 018. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. ITA NO. 334/AHD/2016 ITO VS. SOMPURA MOORTI ART ASSESSMENT YEAR: 2011-12 PAGE 2 OF 2 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 3/2018 IN F.NO .279/MISC. 142/2007-ITJ (PT) DATED 11 TH JULY, 2018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPEALS SHOULD BE FILED BEFORE THE TRI BUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTR UCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLIC ABLE, WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPA RTMENT OR WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTA INABLE AND HENCE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 16 TH JULY, 2018 SD/- SD/- MAHAVIR PRASAD PRAMO D KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 16 TH DAY OF JULY, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: .......16.07.2018 COVERED BY CBDT CIRCULAR LOW TAX EFFECT.... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 16.07.2018..... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 16.07.2018....... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: .. . 16.07.2018..... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . 16.07.2018. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......