The DCIT, Central Circle-2(4), Ahmedabad V. M/s. Sita Fabric Mills Pvt.Ltd., Ahmedabad

ITA 582/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6100 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 05-04-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 05-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: S N SOPARKAR
• Keywords: Unexplained cash credit; Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD . . , , BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NOS.582 & 584/AHD/2013 ( / ASSESSMENT YEARS : 2006-07 & 2008-09) DY. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2(4), AHMEDABAD. V/S M/S. SITA FABRIC MILLS PVT. LTD. 63, NEW CLOTH MARKET, RAIPUR GATE, SARANGPUR, AHMEDABAD-380002 (APPELLANT) (RESPONDENT) PAN: AADCS 3753 J APPELLANT BY : SHRI, SURENDRA KUMAR, CIT D.R . RESPONDENT BY : SHRI S.N. SOPARKAR & PARIN SHA H, A.R. ( )/ ORDER DATE OF HEARING : 05/04/2017 DATE OF PRONOUNCEMENT : 25/04/2017 PER MAHAVIR PRASAD, JUDICIAL MEMBER: 1. THESE TWO APPEALS BY THE REVENUE ARE PREFERRED AGAI NST THE ORDER OF LD. CIT(A)-III, AHMEDABAD DATED 28/12/2012 PERTAINING TO A.YS.2006-07 AND 2008- 09. ITA NO. 582 & 584/AHD/2013 A.Y. 2006-07 & 2008-09 2 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE READS AS U NDER:- IN ITA NO. 582/AHD/2013 FOR A.Y. 2006-07: THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.10,00,000/- MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S. 68 OF THE IT ACT. IN ITA NO. 584/AHD/2013 FOR A.Y. 2008-09: THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN RESTRICTING THE ADDITION TO RS. 10 LAKH OUT OF TOTAL ADDITION OF RS.20 LAKH, MADE O N ACCOUNT OF UNEXPLAINED CASH CREDIT U/S. 68 OF THE IT ACT. 3. THE LEARNED AR OF THE ASSESSEE POINTED OUT BY WAY O F WRITTEN SUBMISSIONS THAT THE APPEALS OF THE REVENUE ARE NOT MAINTAINABL E ON ACCOUNT OF LOW TAX EFFECT AND, THEREFORE, LIABLE TO BE DISMISSED. THE LD. SR. D.R. FAIRLY ADMITTED THAT THE TAX EFFECT ON THE IMPUGNED ADDITIONS IN APPEALS IS LESS THAN THE LIMIT PRESCRIBED BY THE CBDT CIRCULAR OF 10/12/2015 BEARING NO. 21 OF 2015. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENU E, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LEARNED CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE CIRCULAR OF CENTRAL BOARD OF DIRECT TAXES ( CBDT) DATED 10/12/2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS AR E TO BE FILED AGAINST RELIEF GIVEN BY LEARNED CIT(A) BEFORE THE INCOME TAX TRIBU NAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTH ER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS ALSO. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON R ECORD POINTED OUT BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESEN T APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INST RUCTIONS OF THE AFORESAID CBDT ITA NO. 582 & 584/AHD/2013 A.Y. 2006-07 & 2008-09 3 CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEALS OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEALS ARE NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS BOTH THE APPEALS OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. HOWEVER, IN CA SE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR AN Y REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEALS. 5. IN THE RESULT, BOTH APPEALS FILED BY THE REVENUE ARE DISMISSED IN LIMINE. ORDER PRONOUNCED IN OPEN COURT ON 25/04/2017 SD/- SD/- . . ( ) ( ) (N.K. BILLAIYA) (M AHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: 25/04/2017 PRITI COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) III, AHMEDABAD. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, AHMEDABAD TRUE COPY