M/s Modern Rice & General Mills , V. The Income Tax Officer, Bathinda

ITA 345/ASR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0796 (ITAT-AMRITSAR)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-05-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 29-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KANWAL
• Assessee Lawyers: VANEET KRISHAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR (SMC). BEFORE SH. A.D. JAIN, JUDICIAL MEMBER ITA NO.313(ASR)/2013 ASSESSMENT YEAR:2003-04 PAN:ACLPK6540L INCOME TAX OFFICER, VS. M/S. MODERN RICE & GENERAL MILS, WARD II(1), BATHINDA. BATHINDA. (APPELLANT) (RESPONDENT) ITA NO.345(ASR)/2015 ASSESSMENT YEAR:2003-04 PAN:ACLPK6540L M/S. MODERN RICE & GENERAL MILS, VS. INCOME TAX OF FICER, BATHINDA. WARD II(1), BATHINDA. (APPELLANT) (RESPONDENT) DEPARTMENT BY: SH. S.S. KANWAL, DR ASSESSEE BY: SH.VANEET KRISHAN, ADVOCATE DATE OF HEARING: 04/05/2016 DATE OF PRONOUNCEMENT: 04/05/2016 ORDER THESE ARE THE APPEALS ONE BY THE REVENUE AND THE OTHER BY THE ASSESSEE AGAINST THE SEPARATE ORDERS OF THE LD. CIT (A), BATHINDA, DATED 28.02.2013 & 30.04.2015 FOR THE ASSESSMENT YEAR 200 3-04. 2. IN ITA NO.313(ASR)/2013, THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS & CIRCUMSTANCES OF THE CASE, THE L D. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.8,59,217/- TRE ATING THE SAME MESNE PROFIT IGNORING THE FACT THAT WHILE RE CEIVING THE PAYMENTS OF RS.18,00,000/- THERE WAS NOTHING IN THE MIND ITA NOS. 313 & 345(ASR)/ 2013 & 2015 ASSESSMENT YEAR: 2003-04 2 OF THE PARTNERS OF THE ASSESSEE FIRM ABOUT SLUMP SA LE AND THAT IS WHY EVEN AFTER RECEIVING THE SALE CONSIDERA TION OF RS.18,00,000/- THROUGH A CIVIL COURT, THE SALE DEED HAS BEEN GOT EXECUTED ON 31.01.2013 AT A PRICE OF RS.6, 50,000/- AND NO VOLUNTARY RETURN OF INCOME WAS FILED. 2. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR MODI FY THE GROUNDS OF APPEAL SUBSEQUENTLY. 3. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE A SSESSEE RAISED A PRELIMINARY OBJECTION THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APP EAL FILED BY THE DEPARTMENT MAY BE DISMISSED, AS THE SAME IS NO LONG ER MAINTAINABLE IN VIEW OF CBDT INSTRUCTION NO.21 OF 2015 DATED 10.12 .2015. 5. ON THE OTHER HAND, THE LD. DR RELIED UPON THE OR DER OF THE ASSESSING OFFICER. 6. HAVING HEARD BOTH THE PARTIES, IT IS SEEN THAT T HE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10,00,000/-. HENCE, AS PER CBDT INSTRUCTION NO. 21 OF 2015, DATED 10 TH DEC., 2015, WHICH IS BINDING ON THE DEPARTMENT, THE DEPARTMENT IS PRECLUDED FROM MA INTAINING THE PRESENT APPEAL, AS THIS INSTRUCTION IS APPLICABLE R ETROSPECTIVELY. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS DIS MISSED, AS NOT MAINTAINABLE. 7. NOW, WE TAKE UP THE APPEAL OF THE ASSESSEE IN IT A NO.345(ASR)/2015 FOR THE ASSESSMENT YEAR 2003-04, A GAINST THE ACTION OF THE LD. CIT(A), IN CONFIRMING THE PENALTY OF RS.3,1 5,760/- MADE BY THE A.O. 8. SINCE WE HAVE DISMISSED THE QUANTUM APPEAL OF TH E REVENUE, FOR THE ASSESSMENT YEAR 2003-04, THE PENALTY IMPOSED BY THE AO AND CONFIRMED BY THE LD. CIT(A) DOES NOT SURVIVE. ACCOR DINGLY, THE APPEAL OF ITA NOS. 313 & 345(ASR)/ 2013 & 2015 ASSESSMENT YEAR: 2003-04 3 THE ASSESSEE IS ACCEPTED AND PENALTY SUSTAINED BY T HE LD. CIT(A) IS CANCELLED. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED AND THAT OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04/05/ 2016. SD/- (A.D. JAIN) JUDICIAL MEMBER /SKR/ DATED: 04/05/2016 COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: M/S. MODERN RICE & GENERAL MILLS, BAT HINDA. 2. THE ITO WARD 2(1), BATHINDA. 3. THE CIT(A), BATHINDA. 4. THE CIT, BATHINDA. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.