INCOME TAX OFFICER, WARD-4-2, Jaipur V. M/S CLASSIC ALUMINUM WORKS PVT. LTD., Jaipur

ITA 463/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6283 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 06-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI
• Keywords: Accommodation entries; Tax effect
• Section: 68

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. 463/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2009-10. THE INCOME TAX OFFICER, WARD 4(2), JAIPUR. CUKE VS. M/S CLASSIC ALUMINUM WORKS PVT. LTD., 43, ASHOK VIHAR, NEAR AMBABARI BRIDGE, BEHIND PETROL PUMP, JHOTWARA, JAIPUR. LFKK;H YS[KK LA - @THVKBZVKJ LA - @ PAN/GIR NO.: AACCH 0140 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SMT. POONAM RAI (DCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE LQUOKBZ DH RKJH[ K@ DATE OF HEARING: 17/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 19/07/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 22.01.2018 OF CIT (A), AJMER FOR THE ASSESSMENT YEA R 2009-10. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 4 8,00,000/- MADE UNDER SECTION 68 OF THE I.T. ACT ON ACCOUNT OF ACCOMMODATION ENTRIES OF RS. 48,00,000/- OBTAINED I N THE FORM OF SHARE APPLICATION MONEY? 2) THE APPELLANT CRAVES ITS RIGHTS TO ADD, AMEND OR ALTER ANY OF THE GROUNDS ON OR BEFORE THE HEARING. 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE BUT THE TAX EFFECT INVOLVED IN THE APPEAL IS NOT EXCEEDING RS. 20 LACS AS PER THE CBDT 2 ITA NO. 463/JP/2018 ITO VS. M/S CLASSIC ALUMINUM WORKS PVT .LTD. CIRCULAR NO. 3 OF 2018 DATED 11 TH JULY, 2018. IN THE PRESENT CASE, TAX EFFECT IN REVENUES APPEAL IS BELOW THE PRESCRIBED LIMIT OF R S. 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 PRES CRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR 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 EFFE CT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS. UNDER THE POWE RS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIR CULAR NO. 3/2018 DATED 11 TH JULY, 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 EFFEC T DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY ME NTIONED 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 THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R 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 DISPUT E IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE A PPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCUL AR NO. 3 OF 2018 DATED 3 ITA NO. 463/JP/2018 ITO VS. M/S CLASSIC ALUMINUM WORKS PVT .LTD. 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMEN T IS DISMISSED AS NOT PRESSED/WITHDRAWN. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19/07/2018 . SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 19 TH JULY, 2018 * RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD 4(2), JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- M/S CLASSIC ALUMINUM WORKS PVT. LTD ., JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K]T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 463/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR