ITO, Kota V. M/S SURGICAL HOUSE, Kota

ITA 555/JPR/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5571 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 06-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• 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 BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA-@ ITA NOS. 555/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2006-07 . THE INCOME TAX OFFICER, WARD 2(1), KOTA. CUKE VS. M/S. SURGICAL HOUSE, BEHIND CENTRAL BANK OF INDIA, ARYA SAMAJ ROAD, RAMPURA, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAYFS 6536 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SMT. NEENA JEPH (ADDL.CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY S BY : NONE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17.12.2015. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 01/01/2016. VKNS'K@ ORDER PER SHRI T.R. MEENA, A.M. THE PRESENT APPEAL FILED BY THE REVENUE IS ARISING FROM THE ORDER DATED 26.03.2012 PASSED BY THE LEARNED CIT (A), KOTA FOR THE A.Y. 2006-07. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT (A) HAS ERRED IN :- 2 ITA NO. 555/JP/2012 A.Y. 2006-07. ITO VS. M/S. SURGICAL HOUSE, KOTA. 1) DELETING DISALLOWANCE OF INTEREST OF RS. 6,94,872/- PAID TO PARTNERS BY FOLLOWING HIS ORDER IN THE CASE OF THE ASSESSEE FOR A.Y. 2005-06, WITHOUT APPRECIATING THAT THE DISALLOWANCE WAS MADE U/S 184(5) OF THE ACT WHEREAS THE DISALLOWANCE IN A.Y. 2005-06 WAS MA DE U/S 184(2) OF THE ACT. 2) RESTRICTING DISALLOWANCE ON ACCOUNT OF TELEPHONE EX PENSES OF RS. 89,557/- TO RS. 50,000/- WITHOUT ASSIGNING ANY REAS ON AND WITHOUT APPRECIATING THAT EXPENSES OF RS. 89,557/- WERE IN RESPECT OF HONES WHICH WERE NEITHER INSTALLED AT BUSINESS PREMISES O F ASSESSEE NOR WERE IN THE NAME OF ASSESSEE OR ITS PARTNERS. 3) DELETING ADDITION OF RS. 11,12,219/- WITHOUT APPREC IATING THAT THE ASSESSEE HAD FAILED TO OFFER ANY EXPLANATION ABOUT NATURE AND SOURCES OF THESE CREDITS. 2. AFTER HEARING THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND CONSIDERING THE SAME ALONG WITH ORDERS OF THE AUTHORITIES BELOW, WE NOTE D THAT THE APPEAL FILED BY THE REVENUE RELATE TO DELETION OF DISALLOWANCE/ADDITION OF RS. 6,94,872/-, RS. 50,000/- AND RS. 11,12,219/- ON ACCOUNT OF INTEREST PAID TO PART NERS, TELEPHONE EXPENSES AND NATURE OF SOURCES OF THE CREDITS RESPECTIVELY BY HOLDING T HAT ASSESSEE HAS SUPPRESSED PROFIT. IT IS OBSERVED THAT THE TAX EFFECT IN THIS CASE IS LES S THAN RS. 10 LACS. WHEN THE TAX EFFECT IN THE APPEAL OF THE DEPARTMENT IS LESS THAN RS. 10 LACS, THEN THE SAME IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21 OF 201 5 (F. NO. 279/MISC.142/2007-ITJ (PT.) DATED 10.12.2015. 3. AS PER SECTION 268A, NOTIFICATION REFERRED HEREI N ABOVE, IF THE TAX EFFECT IS LESS THAN RS. 10 LACS, THEN THE APPEAL OF THE DEPARTMENT IS LIABLE TO BE DISMISSED BEING NOT MAINTAINABLE/PRESSED. ACCORDINGLY THE APPEAL OF TH E REVENUE /APPELLANT IS DISMISSED ON ACCOUNT OF TAX EFFECT BEING LESS THAN RS. 10 LACS. HOWEVER, THE DISMISSAL OF THE APPEAL 3 ITA NO. 555/JP/2012 A.Y. 2006-07. ITO VS. M/S. SURGICAL HOUSE, KOTA. WILL NOT BE TREATED AS PRECEDENT IN ANY PROCEEDINGS NOR IT WILL BE CONSIDERED AS AN EXPRESSION ON THE MERITS OF THE CASE. THE REVENUE I S FREE TO FILE ANY OTHER APPEAL ON THE SAME ISSUE BEFORE THIS TRIBUNAL. 4. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/01/2016. SD/- SD/- YFYR DQEKJ VH-VKJ-EHUK (LALIET KUMAR) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 01/01/2016. DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO WARD 2(1), KOTA. 2. IZR;FKHZ@ THE RESPONDENT- M/S. SURGICAL HOUSE, KOTA. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDRVIHY@ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 555/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR 4 ITA NO. 555/JP/2012 A.Y. 2006-07. ITO VS. M/S. SURGICAL HOUSE, KOTA.