INCOME TAX OFFICER, JAIPUR V. SHRI MUNNA LAL PAREEK , JAIPUR

ITA 455/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6389 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 05-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI
• Assessee Lawyers: S B NATANI
• Keywords: Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 455/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12. THE INCOME TAX OFFICER, WARD 4(3), JAIPUR. CUKE VS. SHRI MUNNA LAL PAREEK S/O SHRI RADHA MOHANPAREEK, PROP. HINDUSTANMILK PRODUCTS, PLOT NO. 10, SHANKAR VIHAR, CHARAN NADI, NADI KA PHATAK, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AEVPP 5233 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SMT. POONAM RAI (DCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI S.B. NATANI (C.A.) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 16/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 16/07/2018 VKNS'K@ ORDER PER VIJAY PAL RAO, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 22.01.2018 OF CIT (A), AJMER FOR THE ASSESSMENT YEAR 2011-12. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS:- 1) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT (A) IS JUSTIFIED IN DELETING THE ENT IRE ADDITIONS AND ACCEPTING THE CLAIM OF THE ASSESSEE THAT HE IS BENA MIDAR OF THE ACCOUNT NO. 1790101442770 (ICICI BANK) AND PROFIT O F M/S. HINDUSTAN MILK PRODUCTS IS TO BE TAXED IN THE HANDS OF SHRI VISHNU AGARWAL, WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE 2 ITA NO. 455/JP/2018 SHRI MUNNA LAL PAREEK, JAIPUR. HIMSELF IS THE PROPRIETOR OF M/S. HINDUSTAN MILK PR ODUCTS AND HAS SIGNED ON AUDIT REPORT AS PROP. OF HINDUSTAN MI LK PRODUCTS AND ALSO ALL THE RELATED COMMERCIAL CERTIFICATES AR E IN HIS NAMES. 2) WHETHER THE LD. CIT (A) IS JUSTIFIED IN NOT CONS IDERING THE EVIDENCE AVAILABLE IN THE PAPER BOOK FILED BY ASSES SEE WITH REGARD TO CONDUCT OF SEARCH BY HEALTH OFFICER (DT. 15.08.2010 AT ASSESSEES BUSINESS PREMISES) AND ACB ON 07.12.2013 (WITH REGARD TO CONDUCT OF BUSINESS BY ASSESSEE). THESE E VIDENCES ESTABLISH THAT THE BENAMIDAR PLEA TAKEN BEFORE THE CIT (A) IS AN AFTER-THOUGHT. 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS RAISED AN OBJECTION OF MAINTAINABILITY OF THE APPEAL OF THE REVENUE DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO. 3 OF 2018 DATED 11 TH JULY, 2018. THE LD. A/R SUBMITTED THAT IN THE FACTS OF THE PRESENT CASE, TA X EFFECT IN REVENUES APPEAL IS STATED TO BE RS. 13.36 LAKHS ON THE ADDITION OF RS 44.55 LAKHS WHICH IS BELOW THE PRESCRIBED LIMIT OF RS 20 LACS. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRESCRIBED THR ESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER C IRCULAR NO. 21 OF 2015 DATED 10.12.2015. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/2018 DATED 11 TH JULY, 3 ITA NO. 455/JP/2018 SHRI MUNNA LAL PAREEK, JAIPUR. 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 4. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING 20 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 5. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEA L OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PR ESSED/WITHDRAWN. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/07/ 2018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 16/07/2018. DAS/ 4 ITA NO. 455/JP/2018 SHRI MUNNA LAL PAREEK, JAIPUR. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO WARD 4(3), JAIPUR. 2. THE RESPONDENT SHRI MUNNA LAL PAREEK, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 455/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR