ITO, Jaipur V. ARPIT MARBLES PVT. LTD., Jaipur

ITA 572/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99592 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 26-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANISH AGARWAL CA DHK
• Keywords: Tax effect
• Section: 43B

Judgement Text

ITA NO. 572/JP/2014 THE ITO, WARD- 5(1 ) JAIPUR VS. M/S. ARPIT MARBLES (P) LTD. , JAIPUR 1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE:SHRI R.P.TOLANI, JM & SHRI VIKRAM SINGH YADA V, AM VK;DJ VIHY LA-@ ITA NO. 572JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 THE ITO WARD- 5(1) JAIPUR CUKE VS. M/S. ARPIT MARBLES (P) LTD. C-146-147, ROAD NO.9, VKI AREA JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACCA 0145P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : MS. NEENA JEPH, JCIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGARWAL, CA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 22/12/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 23-06-2014 FOR THE ASSESSMENT YEAR 200 8-09 WHEREIN FOLLOWING GROUND HAS BEEN RAISED BY THE REVENUE. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) HAS ERRED:- (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DIR ECTING TO ADOPT THE VALUE OF CLOSING STOCK OF MARBLE TILES AT NET REALIZABLE ITA NO. 572/JP/2014 THE ITO, WARD- 5(1 ) JAIPUR VS. M/S. ARPIT MARBLES (P) LTD. , JAIPUR 2 VALUE AS AGAINST THE VALUE OF SUCH MARBLE TILES AT COST ADOPTED BY THE AO NOTWITHSTANDING THE FACT THAT THE ASSESSE E HAS NOT BEEN ABLE TO SUBSTANTIATE SUCH VALUATION WITH HELP OF ANY PROOF / SALE BILL. (II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DEL ETING TRADING ADDITION OF RS. 19,06,707/- ON ACCOUNT OF UNDER VA LUATION OF CLOSING STOCK. (III) (A) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 42,4209/- MADE FOR DEP OSITING THE EMPLOYEES CONTRIBUTION TO PF AND ESI BEYOND THE PR ESCRIBED TIME LIMIT PROVIDED IN THE RESPECTIVE ACTS. (B) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN HOLDING THAT EMPLOYEES CONTRIBUTION TO PF AND ESI ARE COVERED BY THE PROVISION OF SECTION 43B AND NOT BY SECTION 36(1)(VA) R.W.S. 2(24)(X) OF I.T. ACT. 2.1 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAN D/ TAX EFFECT IN THE REVENUE APPEAL IN QUESTION IS TO THE TUNE OF RS. 5, 84,074/-. UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULARNO.21 OF 2015 DATED 10.12.2015(F NO. 279/MI SC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DE MAND/TAX ITA NO. 572/JP/2014 THE ITO, WARD- 5(1 ) JAIPUR VS. M/S. ARPIT MARBLES (P) LTD. , JAIPUR 3 EFFECT DOES NOT EXCEED LESS THAN RS.10 LACS. THE CI RCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 2.2 SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIRE CTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS LESS THAN 10 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 2.3 THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEP TIONS 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 A PPEAL THE SAME IS NOT MAINTAINABLE IN VIEW OF FORE GOINGS. ACCORDINGLY TH E APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHDRAWN. 3.0 IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 /12/2 015. SD/- SD/- FOE FLAG ;KNO VKJ-IH-RKSYKUH (VIKRAM SINGH YADAV) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 22 /12/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: ITA NO. 572/JP/2014 THE ITO, WARD- 5(1 ) JAIPUR VS. M/S. ARPIT MARBLES (P) LTD. , JAIPUR 4 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD- 5(1), JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S. ARPIT MARBLES (P) LTD. , JAIPU R 3. VK;DJ VK;QDRVIHY ) @ CIT(A) 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.572/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR