ITO 17(3)(3), MUMBAI V. NAGINDAS RATHOD, MUMBAI

ITA 3962/MUM/2011

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3137 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 1 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 27-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 13-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 3962/MUM/2011 ASSESSMENT YEAR: 2006-07 THE ITO - 1 7 (3) (3) , 613, PIRAMAL CHAMBERS, LALBAUG, MUMBAI- 400012. VS. LATE. S HRI. NAGINDAS RATHOD BY HIS LEAGAL HEIR SHRI. NARENDRA RATHOD, HORMUZD BUILDING, FLAT NO. 7, N, BHARUCHA MARG, MUMBAI- 400007. PAN- AAAPR5613G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. AKHILENDRA PRATAP YADAV RESPONDENT BY : SHRI. HORMUZD JAMSHEDJI. DATE OF HEARING: 23/06/2016 DATE OF PRONOUNCEMENT: 23/06/2016 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAI NST ORDER DATED 11/02/2011 PASSED BY THE LD CIT(APPEALS)-29, MUMBAI FOR THE AS SESSMENT YEAR 2006-07. 2. THE REVENUE HAS CHALLENGED THE IMPUGNED ORDER O N FOLLOWING EFFECTIVE GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THE A.O. TO DELETE TH E ADDITION OF AN AMOUNT OF RS. 28,00,000/- UNEXPLAINED CASH CREDIT U /S. 68 OF THE I. T. ACT. 2 ITA NO. 3962/MUM/2011 ASSESSMENT YEAR: 2006-07 2. THE LD. CIT(A) FAILED TO APPRECIATE THE SURROU NDING CIRCUMSTANCES RELATING TO THE TRANSACTION AND THE ORDER BASED ON SUCH IMPROPER APPRECIATION OF THE FACTS AND PREVAILING JUDICIAL D ECISIONS IS ERRONEOUS AND MAY BE QUASHED. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUNDS BE REVERSED AND THAT OF THE ASSESSING OFFIC ER BE RESTORED. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS BELOW RS.10,00,000/- AS THE TOTAL A DDITION MADE BY THE AO IN RESPECT UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT I S RS. 28,00,000/-. HENCE, AS PER THE CBDT CIRCULAR NO. 21 OF 2015, DATED 10/12/2 015, THE PRESENT APPEAL IS NOT MAINTAINABLE. 4. THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT I N DEPARTMENTS APPEAL IS BELOW RS.10 LAKHS, WE FIND THAT THE ISSUE RAISED IN APPEAL DOES NOT FALL UNDER ANY OF THE EXCEPTIONS SPECIFIED IN PARA 8 OF THE C IRCULAR. SINCE, IT HAS BEEN SPECIFICALLY CLARIFIED IN THE CIRCULAR AFORESAID TH AT THE INSTRUCTION WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS, THE PRE SENT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. WE, THEREFORE, DISMIS S THE SAME IN LIMINE . ORDER PRONOUNCED IN THE OPEN COUR T ON 23 RD JUNE, 2016 SD/- SD/- ( B.R.BASKARAN ) (RAM LAL NEGI) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 23/06/2016 3 ITA NO. 3962/MUM/2011 ASSESSMENT YEAR: 2006-07 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A)- 4. / CIT 5. !' , $ !'% , / DR, ITAT, MUMBAI 6. &' ( / GUARD FILE. / BY ORDER, ) //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI PRAMILA