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

ITA 589/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6105 (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: 2010-2011
• Appeal Filed On: 05-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Keywords: Unexplained cash credit; Audit objection; Tax effect

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. NO.589/AHD/2013 ( / ASSESSMENT YEARS : 2010-11) DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 2(4), AHMEDABAD V/S M/S. SEKHANI FABRIC MILLS PVT. LTD. 62, NEW CLOTH MARKET, RAIPUR GATE, SARANGPUR, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AACCS 1080 K APPELLANT BY : SHRI SURENDRA KUMAR, CIT DR RESPONDENT BY : SHRI S.N. SOPARKAR & PARIN S HAH, AR ( )/ ORDER DATE OF HEARING : 05/04/2017 DATE OF PRONOUNCEMENT : 25/04/2017 PER MAHAVIR PRASAD, JUDICIAL MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF LD. CIT(A)-III, AHMEDABAD DATED 28/12/2012 PERTAINING T O A.Y. 2010-11. 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE READS AS U NDER:- ITA NO. 589/AHD/2013 . A.Y. 2010-11 2 I. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE ADDITION OF RS.44 LAKH, MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S.68 OF THE IT ACT. II. THE LEARNED CIT(A) HAS ERRED IN LAW AND IN FACTS IN DELETING THE ADDITION OF RS.4 LAKH, MADE ON ACCOUNT OF UNRECORDED CASH PA YMENT. III. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.3,96,492/-, MADE ON ACCOUNT OF UNRECORDED CAS H PAYMENT. IV. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN RESTRICTING THE ADDITION TO 55,188/- OUT OF TOTAL ADDITION OF RS.15 ,97,321/-, MADE ON ACCOUNT OF STOCK DIFFERENCE. V. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER ON THE ABOVE POINTS. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUB MITTED THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LAC S. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. ITA NO. 589/AHD/2013 . A.Y. 2010-11 3 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN OPEN COURT ON 25/04/2017 SD/- SD/ - /- . . ( ) ( ) (N.K. BILLAIYA) ( MAHAVIR 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