ITO, Faridabad V. Sh. Khushpal Singh, Faridabad

ITA 3699/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3868 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 01-06-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 03-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MONGA
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI K.G. BANSAL ITA NO. 3699/DEL/2010 ASSTT. YR: 2007-08 INCOME-TAX OFFICER, VS. KHUSHPAL SINGH, WARD-II(1), FARIDABAD. M/S HARPREET ENGINEERING WORKS, 214/133, PARVATIYA COLONY, NIT, FARIDABAD. PAN/GIR NO. ADMPS2628H (APPELLANT ) ( RESPONDENT ) DEPARTMENT BY : SHRI A.K. MONGA SR. DR ASSESSEE BY : SHRI ALOK GUPTA CA O R D E R PER R.P. TOLANI, J.M : THIS IS REVENUES AGAINST CIT(A)S ORDER DATED 31 -05-2010 RELATING TO A.Y. 2007-08. 2. THE REVENUE HAS RAISED AS MANY AS 4 GROUNDS OF A PPEAL TO CHALLENGE THE DELETION OF ADDITION OF RS. 7,11,094/- ON ACCOU NT OF BOGUS PURCHASES. 3. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET CONTENDS THAT THE TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REVENUE IS LESS THAN RS. 3 LACS AND THEREFORE IN VIEW OF CBDT INSTRUCTIONS ISSUED IN TH IS BEHALF, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE. 4. LEARNED DR, ON THE OTHER HAND SUPPORTED THE ORDE R OF AO. 5. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN REVENUES APPEAL IS LESS THAN RS. 3 LACS. AS PER CB DT INSTRUCTION NO. 1979 DATED 27-3-2000; INSTRUCTION NO. 2 OF 2005 DATED 2 4-10-2005; AND RECENT INSTRUCTION NO. 3 DATED 9 TH FEBRUARY 2011, APPEALS BEFORE THE ITAT WOULD 2 NOT BE MAINTAINABLE IF THE TAX EFFECT IS BELOW RS. 3 LACS, THEREFORE, IN VIEW OF INSTRUCTIONS OF THE CBDT, REFERRED TO ABOVE, THE DE PARTMENTAL APPEAL IS NOT MAINTAINABLE. IN ARRIVING AT SUCH CONCLUSION WE ARE ALSO FORTIFIED BY THE RATIO OF DECISIONS IN THE FOLLOWING CASES: (1) CIT VS. PRADEEP KUMAR GUPTA (2007) 207 CTR (DEL) 11 5; (2) ACIT VS. SATISH CHAND JAIN (2006) 10 SOT 383 (DEL.) ; (3) ACIT VS. DOON VALLEY MOTORS (2006) 10 SOT 525 (DEL. ); (4) JCIT VS. DEV RAJ AGARWAL (2005) 92 TTJ (LUCKNOW) 43 6; (5) ITA NO. 3839/D/04 & C.O. 28/DEL/07 ITO VS. M/ S M.J. WARE HOUSING (P) LTD.& VICE VERSA DATED 31-8-2007. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 01-06-2011. ( K.G. BANSAL ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01-06-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR