The ACIT, Circle-5, Surat V. Shri Sandeep S. Nanavati, Surat

ITA 382/AHD/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62903 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 08-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKRUTI UPADHYAY
• Assessee Lawyers: RAKESH AGRAWALSR
• Keywords: Tax effect
• Section: 260A

Judgement Text

ITA 382/ AHD/2010 ASSTT.YEAR: 2006-07 . 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD (BEFORE SHRI G.C.GUPTA VICE PRESIDENT & SHRI ANIL C HATURVEDI, A.M.) I.T.A. NO.382/AHD/2010 (ASST. YEARS: 2006-07) THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE-5, ROOM NO.309, AAYAKAR BHAVAN, MAJURA GATE,SURAT. (APPELLANT) VS. SHRI SANDEEP NANAVATI, C-5 KRISHNA NAGAR SOCIETY, NEW RANDER ROAD, OPP.CHOKSI WADI, SURAT. (RESPONDENT) PAN: AAOPN 1000D APPELLANT BY : MS.PRAKRUTI UPADHYAY RESPONDENT BY : MR. RAKESH AGRAWAL,SR.D.R. ( )/ ORDER DATE OF HEARING : 11-7-2 012 DATE OF PRONOUNCEMENT : 03-8-2012 PER: SHRI ANIL CHATURVEDI, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT (A) IV, SURAT DATED 10-11-2009, FOR THE ASSESSMENT YEAR 2006-07 IN THE MATTER OF ORDER PASSED U/S. 143 (3) OF THE ACT. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS:- ITA 382/ AHD/2010 ASSTT.YEAR: 2006-07 . 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT (A)-IV, SURAT HAS ERRED IN RESTRICTING THE LABOUR EXPENSES @ 20% INSTEAD OF 25% MADE BY THE A.O. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT (A0-IV,SURAT HAS ERRED IN DELETING THE ADDITION OF RS.2,83,.322/- MADE BY THE A.O. ON ACCOUNT OF EXCES S PURCHASES. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT (A)-IV, SURAT OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. CIT (A)-IV, SURAT MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER RESTORED. 3. AT THE OUTSET, THE LD. A.R. SUBMITTED THAT THE P RESENT APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE FACT THA T THE TAX EFFECT IS LESS THAN RS.2 LACS. SHE THUS URGED THAT THE APPEAL OF T HE REVENUE NEEDS TO BE DISMISSED IN VIEW OF THE CBDT INSTRUCTION DATED 15- 5-2008.THE LD. D.R. COULD NOT CONTROVERT THESE FACTS. 4. WE HAVE CONSIDERED RIVAL CONTENTIONS AND GONE TH ROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FIND FROM THE RECORDS THA T THE TOTAL ADDITION DELETED BY CIT(A) AMOUNTS TO RS. 2,83,322/- ON WHIC H TAX EFFECT WORKS OUT TO BE LESS THAN RS.2 LACS. THE APPEAL WAS FILED BY THE REVENUE ON 8-2- 2010. AS PER THE CBDT INSTRUCTION NO.5/2008 DATED 1 5-5-2008, THE DEPARTMENT IS NOT TO FILE APPEAL FROM 15-5-2008, IF THE TAX EFFECT IS LESS THAN RS.2 LACS. ITA 382/ AHD/2010 ASSTT.YEAR: 2006-07 . 3 5. THE CBDT VIDE INSTRUCTION NO.5/2008 DATED 15-5-2 008 REVISED/RAISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEP ARTMENT AS UNDER:- SR.NO. AUTHORITY MONETARY LIMIT.(IN RS.) 1 ITAT 2,00,000/- 2 APPEAL UNDER SECTION 260A BEFORE HIGH COURT. 4,00,000/- 3 SUPREME COURT 10,00,000/- THE ABOVE INSTRUCTIONS ARE APPLICABLE TO THE APPEAL S FILED ON OR AFTER 15-5- 2008, ISSUED U/S. 268A (1) OF THE I.T. ACT, 1961. 6. IN VIEW OF THE ABOVE INSTRUCTION OF CBDT THE APP EAL FILED BY THE DEPARTMENT IS NOT MAINTAINABLE AS THE TAX EFFECT IN THE APPEAL FILED BY THE REVENUE IS LESS THAN RS. 2 LACS. EVEN ON MERITS WE FIND THAT CIT (A) HAS DELETED THE ADDITION AFTER RECORDING DETAILED FINDI NG WHICH IS AS PER MATERIAL ON RECORD AND DO NOT REQUIRE ANY INTERFERENCE AT OU R PART. ACCORDINGLY WE CONFIRM THE ORDER OF CIT (A). 7. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON 3-8- 2012. SD/- SD/- (G.C.GUPTA) (ANIL CHATURVEDI) VICE PRESIDENT ACCOUNTANT M EMBER ITA 382/ AHD/2010 ASSTT.YEAR: 2006-07 . 4 AHMEDABAD. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) XX, AHMEDABAD. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD. 1.DATE OF DICTATION 27 - 7 -2012 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 1 / 8 / 2012 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 1 - 8 -2012. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT - -2012 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S - -2012 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK - -2012. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..