Assistant Commissioner of Income Tax, Central Circle-1, , Visakhapatnam V. Jagadish Timber Mart, Visakhapatnam

ITA 363/VIZ/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7771 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 05-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SONAWAL
• Assessee Lawyers: C KAMESWARA RAO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 363 / VIZ /201 8 (ASST. YEAR : 20 08 - 0 9 ) ACIT, CENTRAL CIRCLE - 1, VISAKHAPATNAM. V S . M/S. SRI JAGADISH TIMBER MART, D.NO. 11 - 101/F, MAIN ROAD, RRV PURAM, GOPALAPATNAM, VISAKHAPATNAM. PAN NO. AAEFS 4439 B (APPELLANT) (RESPONDENT) C.O.NO. 107/VIZ/2018 (ARISING OUT OF ITA NO. 363 / VIZ /201 8) (ASST. YEAR : 20 08 - 09 ) M/S. SRI JAGADISH TIMBER MART, D.NO. 11 - 101/F, MAIN ROAD, RRV PURAM, GOPALAPATNAM, VISAKHAPATNAM. VS. ACIT, CENTRAL CIRCLE - 1, VISAKHAPATNAM. PAN NO. AAEFS 4439 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. KAMESWARA RAO C A. DEPARTMENT BY : SHRI D.K. SONAWAL CIT DR DATE OF HEARING : 10 / 0 1 /201 9 . DATE OF PRONOUNCEMENT : 18 / 0 1 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE REVENUE AND THE CROSS OBJECTION BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF COMMISSIONER OF 2 ITA NO. 363/VIZ/2018 & C.O.NO. 107/VIZ/2018 ( M/S. SRI JAGADISH TIMBER MART ) INCOME TAX (APPEALS) - 12 , HYDERABAD , DATED 11 /0 4 /201 8 FOR THE ASSESSMENT YEAR 2008 - 0 9 . 2. THE REVENUE HAS RAISED THE GROUND NO.2 IS EXTRACTED AS UNDER: - (II) THE CIT(A) ERRED IN IGNORING THE FACT THAT FOR THE EARLIER YEAR 2007 - 08, THE ASSESSEE DOES NOT HAVE EXPLAINED SOURCE OF INVESTMENT SO FAR AS UNACCOUNTED PURCHASES ARE CONCERNED AS THERE IS NO UNACCOUNTED SALES IN THE IMMEDIATELY PRECEDING YEAR AND HENCE THE UNACCOUNTED PURCHASE OF RS. 66,38,604/ - MADE IN F.Y. 2007 - 08 RELEVANT TO A.Y. 2008 - 09 SHOULD BE TREATED AS INVESTMENT OUT OF UNDISCLOSED SO URCES. 3 . WHEN THIS APPEAL IS TAKEN UP FOR HEARING, LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE HAS SUBMITTED THAT ADDITION MADE BY THE ASSESSING OFFICER IN RESPECT OF UNACCOUNTED PURCHASES OF RS. 54 ,38,604/ - IS DELETED BY THE LD. CIT(A) , T HEREFORE, THE TAX EFFECT IN THIS CASE IS ONLY RS. 16,80,528 / - . WHEN THIS IS POINTED TO THE LD. DR, THE LD. DR HAS SUBMITTED THAT THE ADDITION IS ONLY DELETED BY THE LD. CIT(A) OF RS. 54,38,604/ - . 3. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE , THOUGH IN THE GROUND , AN AMOUNT OF RS. 66,38,604/ - IS MENTIONED, WE FIND THAT THE ADDITION DELETED BY THE LD. CIT(A) IS RS. 54,38,604/ - , ON THAT GROUND , THE TAX EFFECT IS ONLY OF RS. 16,80,528/ - . THE CASE OF THE REVENUE IS SQUARELY COVERED BY THE CBDT CIRCULAR N O. 03 /201 8 DATED 11.07 .201 8 . IN VIEW OF THE ABOVE, THE TAX EFFECT INVOLVED IN 3 ITA NO. 363/VIZ/2018 & C.O.NO. 107/VIZ/2018 ( M/S. SRI JAGADISH TIMBER MART ) THIS APPEAL IS BELOW RS. 20.00 LAKHS , HENCE, AS PER CBDT CIRCULAR ABOVE, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND IS DISMISSED ACCORDINGLY . 5 . SO FAR AS CROSS OBJECTION IS CONCERNED, IN VIEW OF OUR DECISION ABOVE, THE CROSS OBJECTION FILED BY THE ASSESSEE IS ACADEMIC IN NATURE, THEREFORE, NO ADJUDICATION IS REQUIRED, SAME IS DISMISSED. 6 . IN THE RESULT, APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 1 8 T H DAY OF JAN . , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 8 T H JAN . , 201 9 . VR/ - COPY TO: 1. THE ASSESSEE - M/S. SRI JAGADISH TIMBER MART, D.NO. 11 - 101/F, MAIN ROAD, RRV PURAM, GOPALAPATNAM, VISAKHAPATNAM. 2. THE REVENUE - ACIT, CENTRAL CIRCLE - 1, VISAKHAPATNAM. 3. THE PR. CIT (CENTRAL), VISAKHAPATNAM. 4. THE CIT(A) - 12, HYDERABAD. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.