The ITO, Ward-1(1), JUNAGADH V. M/s. Hotel Shree Paramount, JUNAGADH

ITA 346/RJT/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4279 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 03-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DARSHIT RANPURA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 346/RJT/2014 ( ASSESSMENT YEAR : 2008-09) THE I.T.O., WARD 1(1), JUNAGADH / VS. M/S. HOTEL SHREE PARAMOUNT, KALWA CHOWK, JUNAGADH ./ ./ PAN/GIR NO. : AAEFH8549P ( APPELLANT ) .. ( / RESPONDENT ) & ./ I.T.A. NO. 368/RJT/2014 ( ASSESSMENT YEAR : 2008-09) THE A.C.I.T., CIRCLE 1, JUNAGADH / VS. M/S. HOTEL PARAMOUNT, KALWA CHOWK, JUNAGADH ./ ./ PAN/GIR NO. : AABFH2359A ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI PRAVEEN VERMA, SR. D.R. / RESPONDENT BY : SHRI DARSHIT RANPURA, A.R. DATE OF HEARING 19/07/2018 !'# / DATE OF PRONOUNCEMENT 02/08/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: ITA NO. 346 & 368/RJT/14 [HOTEL SHREE PARAMOUNT & A NR.] A.Y. 2008-09 - 2 - THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE REVENUE AGAINST THE ORDERS OF THE CIT(A)-IV, RAJKOT (CIT(A) IN SHORT), DATED 26.03.2014 AND 25.03.2014 ARISING IN THE ASSESSMENT ORDERS DATED 28.12.2011 & 24.12.2010, PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) R.W.S. 147 AND 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT); RESPECTIVELY, CONCERNING ASSES SMENT YEAR IN BOTH APPEALS 2008-09. 2. SIMILAR GROUNDS OF APPEAL RAISED BY THE REVENUE IN BOTH APPEALS READS AS UNDER:- 1. ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS 32 LAKHS BEING ENTRI ES FOUND ON LOOSE PAPER AND DIARY IMPOUNDED DURING THE SURVEY PROCEEDINGS C ONDUCTED AT THE HEAD OFFICE OF M/S YOGIRAJ ENTERPRISE AND M/S ROYAL ENTE RPRISE. 2. IN DOING SO, THE LD. CIT(A) HAS NOT APPRECIATED THE FOLLOWING FACTS OF THE CASE:- (I) THOUGH THE LOOSE PAPER CONTAINING THE TOTAL TRANSACTION OF RS.83 LAKHS WAS FOUND AT THE THIRD PARTY PREMISES, IT IS IMPORTANT TO NOTE THAT THE SELLER, HOTEL PARAMOUNT AND THE TWO PARTIE S ON WHOM SURVEY WAS CONDUCTED ARE RELATED AND OPERATE FROM T HE SAME BUILDING PREMISES. (II) THE SURVEY PARTY ALSO FOUND A COPY OF AGREEM ENT OF RS 51 LAKHS, WHICH WHEN LINKED WITH THE LOOSE PAPER FOUND AT THE SAME PREMISES IS SUFFICIENT CORROBORATIVE EVIDENCE. (III) IN STATEMENT OF SHRI JAYESHBHAI PREMJIBHAI TA NK, PARTNER OF HOTEL SHREE PARAMOUNT(PURCHASER) WHEN QUESTIONED ABOUT TH E CASH PAYMENT NOTINGS OF RS.22,25,000/-, RS.7,25,000/- AND RS.21,000/- APPEARING IN LOOSE PAPER NUMBERED 127 OF ANNEXURE B/1D, STATED THAT RS 21,000/- CASH WAS PAID AT THE TIME OF SATAK HAT AND ALL OTHER PAYMENTS WERE MADE BY BANK CHEQUE. THE FACT THAT HI S ACCEPTANCE OF PAYMENT OF RS 21,000/- IN CASH IS A SUFFICIENT P ROOF THAT HE HAS NOT TOTALLY DENIED THE FIGURES MENTIONED IN THE LOOSE P APER WHICH PROVES THAT ADDITION MADE BY THE AO IS NOT BASED ON SURMIS ES AND THAT THE ENTRIES CANNOT BE PARTIALLY TRUE. 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 ITA NO. 346 & 368/RJT/14 [HOTEL SHREE PARAMOUNT & A NR.] A.Y. 2008-09 - 3 - 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 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/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 02/08/2018 TRUE COPY S. K. SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITA T, RAJKOT THIS ORDER PRONOUNCED IN OPEN COURT ON 02/08/20 18