ITO 15(3)(1), MUMBAI V. ARVIND D. BHANUSHALI, THANE

ITA 4830/MUM/2010

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1999 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 10-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MORYA PRATAP
• Keywords: Unexplained cash credit; Retrospective amendment; Tax effect
• Section: 144

Judgement Text

A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ./ I.T.A. NO. 4830 /MUM/2010 ( / ASSESSMENT YEAR : 2006-07) THE INCOME TAX OFFICER WARD -15(3)(1), ROOM NO. 106, MATRU MANDIR, IST FLOOR, TARDEO ROAD, MUMBAI 400 007. / V. SHRI ARVIND D. BHANUSHALI, BLDG. NO. 1, ROOM NO. 41, 4 TH FLOOR, OPP. DISOJA WADI, SHIVAJI NAGAR, CHECKNAKA, THANE. ./ PAN : AIIPB7011L ( / APPELLANT ) .. ( / RESPONDENT ) REVENUE BY SHRI MORYA PRATAP REVENUE BY : SHRI SHYAM SABOO / DATE OF HEARING : 15-12-2015 / DATE OF PRONOUNCEMENT : 15-12-2015 / O R D E R PER RAMIT KOCHAR, ACCOUNTANT MEMBER : THIS APPEAL, FILED BY THE REVENUE, BEING ITA NO. 48 30/MUM/2010, IS DIRECTED AGAINST THE ORDER DATED 22-3-2010 PASSED B Y THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- 26, MUMBAI (H EREINAFTER CALLED THE CIT(A)), FOR THE ASSESSMENT YEAR 2006-07. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE IN T HE MEMO OF APPEAL FILED READ AS UNDER:- ITA 4830/M/10 2 I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND LAW, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION M ADE BY THE A.O. U/S.68 OF THE I. T. ACT ON ACCOUNT OF UNEXPLAINED CASH CREDITS OF RS. 20,37,000/- IGNORING THE MATERIAL FACTS AVAILABLE O N THE RECORD THAT THE SEVERAL STATUTORY NOTICES WERE ISSUED AND SERVED ON TH E ASSESSEE TO EXPLAIN CASH DEPOSITS DURING THE ASSESSMENT PROCEEDIN GS. ' 02. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AN D LAW, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION M ADE BY THE A.O. U/S.68 OF THE I. T. ACT ON ACCOUNT OF UNEXPLAINED CASH CREDITS OF RS. 20,37,000/- IGNORING THE FACT THAT THE ASSESSEE HAS FA ILED TO GIVE SATISFACTORY DETAILS/EXPLANATION WITH RESPECT TO NATURE AN D SOURCE OF THE SAID CASH DEPOSITS.' 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS. 10 LACS AS THE INCOME ASSESSED IS RS. 21,41,360/- WHILE THE DECLARED INCOME WAS RS . 1,04,360/- AND THE ASSESSMENT WAS FRAMED U/S 144 OF THE INCOME TAX ACT , 1961 VIDE ASSESSMENT ORDER DATED 22-12-2008. THE LD. COUNSEL SUBMITTED THAT AS PER THE LATEST CBDT CIRCULAR NO. 21/2015, F. NO. 279/MISC.142/2007 -ITJ (PT) DATED 10 TH DECEMBER, 2015 ISSUED BY CENTRAL BOARD OF DIRECT TA XES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NO APPEAL SHALL BE FILED BY THE REVENUE IN RESPECT OF AN ASSESSMENT YEAR OR YEA RS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3 . PARA 3 OF THE CIRCULAR NO. 21/2015 S NO. APPEALS IN INCOME TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IN THE SAID CIRCULAR VIDE PARA 10, IT IS STIPULATE D THAT THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEAL S TO BE FILED HENCEFORTH IN ITA 4830/M/10 3 HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE S PECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. THE LD. D.R. FAIRLY CONCEDED THAT TAX EFFECT INV OLVED IN THIS APPEAL IS LESS THAN RS. 10 LACS AND THE CBDT CIRCULAR NO. 21/2015 IS APPLICABLE TO THIS APPEAL AND THE APPEAL IS NOT MAINTAINABLE. 5. KEEPING IN VIEW THE CBDT CIRCULAR NO. 21/2015 DA TED 10 TH DECEMBER, 2015 WHICH IS APPLICABLE FROM RETROSPECTIVE EFFECT AND IS ALSO APPLICABLE TO PENDING APPEALS AND ALSO IN VIEW OF DR STATING BEFO RE US THAT THIS APPEAL IS NOW NOT MAINTAINABLE IN VIEW OF ABOVE CBDT CIRCULAR , WE HOLD THAT THE PRESENT APPEAL FILED BY THE REVENUE INVOLVING TAX E FFECT LESS THAN RS. 10 LACS IS NOT MAINTAINABLE. THE SAME IS, THEREFORE, DISMI SSED AT THE THRESHOLD. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH DECEMBER, 2015. # $% &' 15-12-2015 ( ) SD/- SD/- (JOGINDER SINGH) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER $ MUMBAI ; & DATED 15-12-2015 [ .9../ R.K. R.K. R.K. R.K. , EX. SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. : ( ) / THE CIT(A)- CONCERNED, MUMBAI 4. : / CIT- CONCERNED, MUMBAI 5. =>( 99?@ , ?@ , $ / DR, ITAT, MUMBAI H BENCH 6. (BC D / GUARD FILE. / BY ORDER, = 9 //TRUE COPY// / ( DY./ASSTT. REGISTRAR) , $ / ITAT, MUMBAI