ACIT, Kota V. M/S KENDRIYA ACADEMY VIDHYALAYA, Kota

ITA 544/JPR/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5101 (ITAT-JAIPUR)
• Duration Of Justice: 4 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 04-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S DAGUR ADD CIT DHK
• Assessee Lawyers: B V MAHESHWARI
• Keywords: Tax effect
• Section: 133A

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 DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 544 & 545/JP/12 & ITA NO. 533/JP/15 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2005-06, 2006-07 & 2010-11 THE ACIT, CIRCLE, KOTA CUKE VS. M/S KENDRIYA ACADEMY VIDHYALAYA SHIKHA SAMITI, CENTRAL ACADEMY SCHOOL, DADABARI, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAATK 5660L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI B.V. MAHESHWARI (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.S. DAGUR (ADD. CIT ) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 29.07.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 29/07/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THESE ARE THE APPEALS FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-KOTA DATED 26.03.2012 IN ITA NOS. 544 & 545 /JP/12 AND ORDER OF LD. CIT(A)-KOTA DATED 27.03.2015 IN ITA NO. 533/JP/15 WHEREIN THE REVENUE HAS HAS TAKEN FOLLOWING GROUNDS OF APPEAL: APPEAL NO. 544/JP/12 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE LD. CIT(A) HAS ERRED IN DELETING DISALLOWANCE OF RS. 30,22,564/- OUT OF SALARY EXPENSES IGNORING THE FACT THAT DURING THE COURSE OF SURVEY, THE PRINCIPAL AND TEACHERS OF THE SCHOOL STATED THAT THEY HAVE RECEIV ED LESS SALARY AS ITA NOS. 544 & 545/JP/12 AND ITA NO. 533/JP/15 ACIT, CIRCLE KOTA VS. KENDRIYA VIDHYALAYA SHIKSHA SAMITI KOTA. 2 AGAINST HIGHER SALARY RECORDED IN THE BOOKS OF ACCO UNTS BY WAY OF TAKING SIGNATURE FROM THE EMPLOYEES OF THE SOCIETY. APPEAL NO. 545/JP/12 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE LD. CIT(A) HAS ERRED IN DELETING DISALLOWANCE OF RS. 30,22,564/- OUT OF SALARY EXPENSES IGNORING THE FACT THAT DURING THE COURSE OF SURVEY, THE PRINCIPAL AND TEACHERS OF THE SCHOOL STATED THAT THEY HAVE RECEIV ED LESS SALARY AS AGAINST HIGHER SALARY RECORDED IN THE BOOKS OF ACCO UNTS BY WAY OF TAKING SIGNATURE FROM THE EMPLOYEES OF THE SOCIETY. APPEAL NO. 533/JP/15 (1). ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF SALARY EXPENSES OF RS.28,57,750/- DESPITE THE FACT THAT THE PAYMENTS W ERE MADE TO PERSONS SPECIFIED U/S 13(3) AS WELL AS THE DEFECTS NOTICED DURING THE COURSE OF SURVEY U/S 133A REMAINED UNCONTROVERTED. (2). ON ACCOUNT OF SALARY EXPENSES DESPITE THE FACT THAT THESE EXPENSES WERE NOT FULLY VOUCHED. (3). DELETING THE DISALLOWANCE OF RS. 25,81,229/- O N A/C OF PRINTING & STATIONARY EXPENSES. (4). DELETING THE ADDITION ON ACCOUNT OF OUTSTANDIN G LIABILITY U/S 41(1)OF THE IT ACT DESPITE THE FACT THAT THE ASSESSEE COULD NOT FURNISH ANY DOCUMENTARY EVIDENCE WITH REGCRD TO PAYMENT MADE IN RESPECT OF THE LIABILITY SHOWN. 2. DURING THE COURSE OF HEARING, THE LD. AR SUBMITTED THAT THE SUBJECT APPEALS OF REVENUE ARE NOT MAINTAINABLE IN LIGHT OF CIRCULAR NO. 21 DATED 10.12.2015 ISSUED BY THE CBDT. 3. WE HAVE HEARD LD AR AND THE LD DR. FROM PERUS AL OF MATERIAL AVAILABLE ON RECORD IN RESPECT OF THE ABOVE APPEALS, IT IS O BSERVED THAT THE DEMAND/ TAX EFFECT IN THESE REVENUE APPEALS IS NOT EXCEEDING RS . 10 LACS IN EACH OF THE THREE YEARS UNDER CONSIDERATION. 3.1 UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I.T. ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12. 2015 (F.NO.279 /MISC.142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT ITA NOS. 544 & 545/JP/12 AND ITA NO. 533/JP/15 ACIT, CIRCLE KOTA VS. KENDRIYA VIDHYALAYA SHIKSHA SAMITI KOTA. 3 DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS.10 LACS. THE C IRCULAR SPECIFICALLY MENTIONS THAT IT WILL BE APPLICABLE TO ALL PENDING APPEALS ALSO. 3.2. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIR ECTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING RS. 10 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES AT THE TIME OF HEARING . 3.3 THE SUBJECT REVENUE APPEALS ARE NOT COVERED B Y ANY EXCEPTIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THE DEPARTMENTAL APPEALS DOES NOT EXCEED THE LIMIT OF R S. 10 LACS AS SET OUT BY CBDT, SUCH APPEALS ARE NOT MAINTAINABLE. ACCORDINGL Y, THE SUBJECT APPEALS ARE DISMISSED IN VIEW OF THE CBDT CIRCULAR NO.21 OF 201 5 DATED 10.12.2015. IN THE RESULT, THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/07 /2016. SD/- SD/- ( KUL BHARAT ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 29/ 07/2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE, KOTA 2. IZR;FKHZ@ THE RESPONDENT- M/S KENDRIYA VIDHYALAYA SHIKSHA SAM ITI, KOTA 3. VK;DJ VK;QDR@ CIT , KOTA ITA NOS. 544 & 545/JP/12 AND ITA NO. 533/JP/15 ACIT, CIRCLE KOTA VS. KENDRIYA VIDHYALAYA SHIKSHA SAMITI KOTA. 4 4. VK;DJ VK;QDRVIHY@ THE CIT(A)-KOTA 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.544 & 545 /JP/2012 & ITA NO. 533 /JP/15) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRARS