ITO, V. Dr. Sushanth Rai,

ITA 38/BANG/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9386 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 07-09-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 10-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S SUNDAR RAJAN
• Assessee Lawyers: V SRINIVASAN
• Keywords: Unexplained investment; Valuation report; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH C, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO.38(BANG) 2014 (ASSESSMENT YEAR : 2010-11) THE INCOME TAX OFFICER, WARD-1(2), MANGALORE APPELLANT VS DR. SUSHANT RAI, RAISON BREEDERS, MALABAR HILLS, CAPITANIO, KANKANADY, MANGALORE-570 002 PAN NO.AGDPR8582P RESPONDENT REVENUE BY : SHRI S. SUNDAR RAJAN, JCIT ASSESSEE BY : SHRI V SRINIVASAN, ADVOCATE DATE OF HEARING : 07-09-2016 DATE OF PRONOUNCEMENT : -09-2016 O R D E R PER SHRI A.K.GARODIA, AM THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORD ER OF THE LD. CIT(A), MYSORE DATED 08-10-2013 FOR THE ASSESSMENT YEAR 2010-11. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER; 1. THE ORDER OF THE LD. CIT(A) IS AGAINST LAW AND FACTS OF THE CASE. 2. THE LD. CIT(A) ERRED IN NOT CONSIDERING THE FAC T THAT CASH DEPOSITS IN BANK ACCOUNTS ARE NOT SATISFACTORILY EXPLAINED, AS THE ASSESSEE PREPARED & ITA NO.38(BANG)2014 2 PRODUCED BOOKS OF ACCOUNTS ON THE BASIS OF BANK ENTRIES. 3. THE LD. CIT(A) ERRED IN NOT CONSIDERING THE FAC T THAT UNEXPLAINED INVESTMENTS ARE NOT PROPERLY EXPLAINED AS THE ASSESSEE COULD NOT EXPLAIN AS TO HOW HE COULD MAKE ACCOUNTING ENTRIES AS ON 01-04- 2010 WHEN THE SECOND VALUATION REPORT WAS NOT AVAILABLE AS ON THAT DATE. 4. FR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE ORDER OF CIT(A) MAY SET AS IDE ON THIS POINT AND THAT OF THE AO BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD, DELETE, AMEND OR MODIFY ANY OF THE GROUNDS OF APPEAL. 3. THIS APPEAL OF THE REVENUE WAS EARLIER DECIDED BY THE TRIBUNAL AS PER ORDER DATED 20-11-2016 AND THE APPEAL OF THE REVENUE WAS ALLOWED FOR STATISTICAL PURPOSES. LATER, THE ASSES SEE HAS FILED MP AND AS PER ORDER IN VIDE MP NO.64(B)/2016 DATED 07-03-2016 , THE EARLIER TRIBUNAL ORDER WAS RECALLED ON THIS BASIS THAT THE ONLY ADDITION DELETED BY THE LD.CIT(A) IN THE APPELLATE ORDER RELATES TO A SUM OF RS.31.15 LAKHS AND TAX EFFECT OF THE AFORESAID ADDITION WORK S OUT TO RS.9,93,435/- WHICH IS LESS THAN RS.10.00 LAKHS AND AS PER THE BO ARDS CIRCULAR NO.21/2015 DATED 10-12-2015, THE APPEAL OF THE REVE NUE IS NOT MAINTAINABLE AS THE TAX EFFECT IS LESS THAN RS.10.0 0 LAKHS AND THEREFORE, THERE IS A MISTAKE APPARENT IN THE TRIBUNAL ORDER. ACCORDINGLY, THE TRIBUNAL ORDER DATED 20-01-2016 WAS RECALLED. 4. NOW WE HAVE TO DECIDE THE APPEAL OF THE REVENUE AFRESH. ITA NO.38(BANG)2014 3 5. LD. DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER WHEREAS THE LD. AR OF THE ASSESSEE SUPPORTED THE ORDER OF T HE LD. CIT(A) AND HE ALSO SUBMITTED THAT BECAUSE OF THE LOW TAX EFFECT, THE APPEAL OF THE REVENUE SHOULD BE DISMISSED. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND WE FIND FORCE IN THE SUBMISSIONS OF THE LD. AR OF THE ASSESSEE BECAU SE ADMITTEDLY, THE TAX EFFECT IN THE PRESENT CASE IS BELOW RS.10.00 LA KHS AND THEREFORE, AS PER THE BOARDS CIRCULAR NO.21/2015 DATED 10-12-201 5, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE, IF THE TAX EFFECT IS BLOW RS.10.00 LAKHS AND THIS CIRCULAR IS APPLICABLE TO PENDING APPEALS ALSO. ACCORDINGLY, WE DISMISS THE APPEAL OF THE REVENUE BECAUSE OF LOW TA X EFFECT. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MEN TIONED ON THE CAPTION PAGE. (VIJAY PAL RAO) (A.K. GARODIA) JUDICAL MEMBER AC C OUNTANT MEMBER BANGALORE: D A T E D : .09.2016 AM* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)-II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER, AR, ITAT, BANGALORE ITA NO.38(BANG)2014 4 1. DATE OF DICTATION 2. , , DATE ON WHICH TYPED DRAFT IS PLACED BEFORE THE DICT ATING MEMBER .. 3. !' # . $ %# / $ %# # & DATE ON WHICH THE APPROVED DRAFT COMES TO THE PS/SR .PS. 4. ''() & * + DATE ON WHICH THE ORDER IS PLACED BEFORE THE DICTAT ING MEMBER FOR PRONOUNCEMENT 5. * . %# / # . . %# # + DATE ON WHICH THE ORDER COMES BACK TO THE PS/SR.PS .. 6 * !', + DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. ! !', ' , - ) IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO . 8. .% / 0 + DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. * 1'2 / 34 & 5 + DATE ON WHICH ORDER GOES FOR XEROX &ENDORSEMENT 10. 0 6 / + DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 11. * 7 & 0 8 + THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 12. !) * 9() & 0 9() /#5 . + THE DATE ON WHICH THE FILE GOES TO DESPATCH SECTION FOR DESPATCH OF THE TRIBUNAL ORDER 13. * 9() + DATE OF DESPATCH OF ORDER .