ASST CIT CIR 22(1), NAVI MUMBAI V. CHERUVELLIL K NINAN, MUMBAI

ITA 5856/MUM/2014

• Counselvise Citation: 585619914 RSA 2014
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 19-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 56

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN (ACCOUNTANT MEMBER) . . , ./ I.T.A. NO S . 58 56 / MUM/20 14 ( / ASSESSMENT YEAR : 200 7 - 08 ) ASSTT.COMMISSIONER OF INCOME TAX CIRCLE 22(1), ROOM NO.411, 4 TH FLOOR, TOWER NO.6, VASHI RAILWAY STATION COMPLEX, NAVI MUMBAI - 400703 / VS. SHRI CHERUVELLIL, K NINAN, GALA NO.1, OPP. DARGAH MAULANA CHAWL, LBS M ARG, GHATKOPAR (W), MUMBAI - 400086 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN/GIR NO. : AACPN3447L / APPELLANT BY SHRI K P R R MURTY / RSPONDENT BY SHRI PRAYAG JHA / DATE OF HEARING : 0 3.8 . 201 5 / DATE OF PRONOUNCEMENT : 03. 8. 201 5 / O R D E R PER B ENCH: THE PRESENT APPEAL FILED ON 19.9.2014 BY THE REVENUE AGAINST THE ORDER DATED 14. 7.2014 PASSED BY THE LD. CIT(A) - 33, MUMBAI FOR THE ASSESSMENT YEAR 2007 - 08 ON THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE C I T(A) ERRED IN DELETING THE ADDITION OF RS.4,27,112/ - ON ACCOUNT OF DISALLOWA NCE U/S. 40A(3), RS.79,672/ - ON ACCOUNT OF ESTIMATED G.P. @3% ON RS.26,55,717/ - , WITHOUT APPRECIATING THAT THE ASSESSEE HAS NOT MERELY ACTED AS AN AGENT OF M/S GEETA ENTERPRISES. IN FACT, HE IS THE KEY PERSON OF M/S GEETA ENTERPRISES. 2. THE APPELLANT PR AYS THAT THE ORDER OF C I T(A) ON THE ABOVE GROUND BE REVERSED AND THAT OF THE ASSESSING OFFICER BE RESTORED ITA NO. 58 56 / MUM/20 14 2 2. THAT AFTER MAKING SUBMISSION BY LEARNED DEPARTMENTAL REPRESENTATIVE (DR) AS WELL AS BY LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE ON THE GROUNDS OF APPEAL, THE AR OF ASSESSEE BROUGHT TO MY NOTICE THAT THE TAX EFFECT IN THE IMPUGNED ORDER COMES TO BE RS. 1,89,149/ - . HE FURTHER SUBMITTED THAT THE REVENUE IS PRECLUDED TO FILE THE PRESENT APPEA L, IN VIEW OF THE FACT THAT THE TAX EFFECT IS LES S THAN THE MONETARY LIMIT PRESCRIBED IN CBDT CIRCULAR NO.3/2011 DATED 9.2.2011 AND FURTHER CIRCULAR NO.5/2014 (F NO.279/MISC./142/2007 - IT(PT) DATED 10.07.2014) ISSUED IN PURSUANCE OF SECTION 268A OF THE IT ACT. IN THE LATER CIRCULAR, THE MONETARY LIMIT PR ESCRIBED WAS RS.4 LAKHS AND THE REVENUE IS PRECLUDED FROM FILING APPEAL, IF THE TAX EFFECT IS LE S S THAN RS.4 LAKHS. 3. ADMITTEDLY , THE TAX EFFECT (CALCULATION CHART OF WHICH IS PLACED ON RECORD) IS BELOW THE AMOUNT OF RS. 4 LAKHS, WHICH FACT WAS NOT DIS PUTED BY THE LD.DR. IT WAS ALSO NOT SHOWN TO US THAT THE ISSUE CONTESTED IN THIS APPEAL FA LL S UNDER EXCE P TI ON S GIVEN IN THE C IRCULAR OF CBDT, REFERRED ABO V E. HENCE, IN VIEW OF THE ABOVE ADMITTED POSITION , THE PRESENT APPEAL IS NOT MAINTAINABLE AND THE SAME IS DISMISSED. 4. AS A RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. PRONOUNCED ACCORDINGLY ON 3 RD AUGUST 2015. 3 RD AUG , 2015 SD ( . . / B.R. BAS KARAN) / ACCOUNTANT MEMBER MUMBAI: 3 RD AUG , 2015 . ITA NO. 58 56 / MUM/20 14 3 . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , /ITAT, MUMBAI