The ITO, Ward-1(2)(4), Baroda V. Shri Nilesh S. Talegaonkar, Baroda

ITA 340/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5071 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 16-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTOSH KARNANI
• Keywords: Tax effect
• Section: 147; 144

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NOS. 340 & 341/AHD/2015 ( ASSESSMENT YEARS : 2007-08 & 2008-09) INCOME-TAX OFFICER, WARD-1(2)(4), ROOM NO.207, 2 ND FLOOR, AAYKAR BHAVAN, RACE COURSE, BARODA, PIN- 390007 / VS. SHRI NILESH S TALEGAONKAR, PROP:- UNITED INTERNATIONAL TOURS & TRAVELS, 105-GARDEN VIEW COMPLEX, SAYAJIGANJ, BARODA-390005 ./ ./ PAN/GIR NO. : ACKPT2056M ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SANTOSH KARNANI, SR. D.R. / RESPONDENT BY : NONE DATE OF HEARING 19/07/2018 !'# / DATE OF PRONOUNCEMENT 09/08/2018 / O R D E R PER BENCH: THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE REVENUE AGAINST THE COMBINED ORDER OF THE CIT(A)-II , BARODA (CIT(A) IN SHORT), DATED 21.10.2014 ARISING IN TH E ASSESSMENT ORDERS DATED 07.03.2013 & 12.03.2013; RESPECTIVELY, PASSED BY THE ASSESSING ITA NOS. 340 & 341/AHD/15 [ITO VS. SHRI NILESH S TA LEGAONKAR] A.YS. 2007-08 & 2008-09 - 2 - OFFICER (AO) UNDER S. 144 R.W.S. 147 OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING ASSESSMENT YEARS 2007-08 & 2008-09. 2. SIMILAR GROUNDS OF APPEAL RAISED BY THE REVENUE IN BOTH ASSESSMENT YEARS READS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(APPEALS) ERRED BY NOT APPRECIATING THE FACT THA T THE ASSESSEE HAS ADMITTED THE ADDITIONAL INCOME BEFORE THE DDIT(INV) , BARODA, AND IT HAD NO EVIDENCE TO CLAIM ENTIRE WITHDRAWAL AS EXPENDITURE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(APPEALS) ERRED IN RESTRICTING THE ADDITION MADE BY THE ASSESSING OFFICER WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE COU LD NOT PROVE HIS CONTENTION THAT THE ENTIRE CASH WITHDRAWALS WERE US ED FOR THE BUSINESS PURPOSE OF BOOKING OF AIR/RAILWAY TICKETS ONLY. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT BOTH APPEALS FILED BY THE REVENUE ARE HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASES, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE ARE STATED TO BE NOT EXCEEDIN G RS.20 LAKHS AND THEREFORE BOTH APPEALS OF THE REVENUE ARE REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. ACCORDINGLY, BOTH APPEALS OF THE REVENUE ARE DISMISSED AS NOT MAINTAINABLE. HOWEVER , IT WILL BE OPEN ITA NOS. 340 & 341/AHD/15 [ITO VS. SHRI NILESH S TA LEGAONKAR] A.YS. 2007-08 & 2008-09 - 3 - TO THE REVENUE TO SEEK RESTORATION OF ITS APPEALS O N SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN A NY MANNER. 5. IN THE RESULT, BOTH APPEALS OF THE REVENUE ARE D ISMISSED. SD/- SD/- (RAJPAL YADAV) (PRADI P KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 09/08/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 09/08/201 8