ACIT, Kanpur V. Smt. Reeta Gupta, Kanpur

ITA 582/LKW/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 5373 (ITAT-LUCKNOW)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-11-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 10-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANADI VERMA
• Keywords: Gift; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, A - BENCH, LUCKNOW. BEFORE SHRI H.L.KARWA, HON'BLE VICE PRESIDENT AND SHRI N.K.SAINI, ACCOUNTANT MEMBER I.T.A.NO.582(LKW.)/2010 A.Y. : 2001-02 THE ACIT-3, VS. SMT. RITA GUPTA, KANPUR. 47/61,HATIA, KANPUR. PAN ACEPG0260C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANADI VERMA, D.R. RESPONDENT BY : SHRI RAKESH GARG, ADVOCATE O R D E R PER H.L.KARWA, VICE PRESIDENT THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A)-II, KANPUR DATED 29.6.2010 RELATING TO TH E ASSESSMENT YEAR 2001- 02. 2. THE ONLY GRIEVANCE OF THE REVENUE IN THIS APPE AL RELATES TO THE DELETION OF ADDITION OF RS.1,00,000 ON ACCOUNT OF U NEXPLAINED EXPENDITURE ON COMMISSION ON GIFTS OF RS.20 LACS RECEIVED BY TH E ASSESSEE FROM SHRI SANJAY MOHAN AGARWAL S/O LATE G.C.AGARWAL R/O 4674, SHORA KOTHI, PAHARGANJ, DELHI. 3. DURING THE COURSE OF HEARING, THE LD.COUNSEL FOR THE ASSESSEE ,AT THE VERY OUTSET, STATED THAT THE TAX EFFECT IN THIS APP EAL IS LESS THAN RS.2 LACS AND, 2 THEREFORE, THE DEPARTMENT OUGHT NOT TO HAVE FILED THE APPEAL IN VIEW OF THE BOARDS CIRCULAR ISSUED BY THE C.B.D.T. 4. AFTER HEARING THE LD. REPRESENTATIVES OF BOTH THE PARTIES, WE FIND THAT IN REVENUES APPEAL TAX EFFECT IS LESS THAN RS.2 LA CS AND ADMITTEDLY, THE APPEAL WAS FILED ON 10.9.2010. IT IS NOTICED THAT THE C.B.D.T. HAS ISSUED INSTRUCTION NO.5 OF 2008 DATED 15.5.2008, BY WHICH THE C.B.D.T. HAS REVISED THE MONETARY LIMIT TO RS.2 LACS FOR FILING THE APPE ALS BEFORE THE TRIBUNAL. KEEPING IN VIEW THE C.B.D.T. INSTRUCTION NO.5 OF 20 08 DATED 15.5.2008, WE ARE OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE F ILED THIS APPEAL BEFORE THE TRIBUNAL AFTER THE DATE OF ISSUANCE OF THE AFORESAI D INSTRUCTION. RECENTLY, THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF CIT V. CO NCORD PHARMACEUTICALS (2008) 220 CTR GUJARAT 117 HAS UPHELD THE ORDERS OF I.T.A.T. AHMEDABAD BENCHES DISMISSING THE APPEALS OF THE REVENUE ON TH E GROUND THAT TAX EFFECT WAS LESS THAN THE LIMIT PRESCRIBED BY C.B.D.T. IN ITS CIRCULARS ISSUED FROM TIME TO TIME. 5. IN VIEW OF THE ABOVE, WITHOUT GOING INTO THE MER ITS OF THE CASE, WE DISMISS THE APPEAL FILED BY THE REVENUE. 6 IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMI SSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 1.11.20 10. SD. SD. (N.K.SAINI) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT NOVEMBER 1ST ,2010. 3 COPY TO THE : 1. APPELLANT 2. RESPONDENT 3. CIT(A) (4) CIT 5.DR. A.R.,ITAT, LUCKNOW. SRIVASTAVA.