ACIT, Ajmer V. NAVNEET KUMAR SOMANI, BHILWARA

ITA 600/JPR/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6288 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 02-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BK GUPTA
• Keywords: Tax effect; Retraction
• Section: 132

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKWY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 600/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2013-14. THE ACIT, CENTRAL CIRCLE, AJMER. CUKE VS. SHRI NAVNEET KUMAR SOMANI, E-94/1, SHREENATH VILLA, AJMER ROAD,SUBHASH NAGAR, BHILWARA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ACXPS 9368 N VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI B.K. GUPTA (CIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI MUKESH SONI (C.A.) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 16/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 17/07/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-2, UDAIPUR DATED 18.03.2016 FOR AY 2013-14. THE GROUND S RAISED BY THE REVENUE ARE AS UNDER:- 1) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 32,50,000 /- MADE ON ACCOUNT OF DISCLOSURE OF UNDISCLOSED ADVANCES GIVEN FOR PUR CHASE OF LAND. 2) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 32,50,000 /- WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HIMSELF ADM ITTED AND DISCLOSED 2 ITA NO. 600/JP/2016 SHRI NAVNEET KUMAR SOMANI, BHILWARA. ADVANCES OF RS. 32,50,000/- GIVEN AGAINST LAND IN H IS STATEMENT RECORDED ON OATH U/S 132(4) OF THE I.T. ACT, DURING THE COURSE OF SEARCH ACTION U/S 132 OF THE I.T. ACT IN PRESENCE OF INDEP ENDENT WITNESSES. 3) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT (A) WAS RIGHT IN ACCEPTING THE SUBSEQUENT RETRACTION OV ER THE STATEMENTS RECORDED U/S 132(4). 4) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 6,720/- M ADE ON ACCOUNT OF INCOME FROM HOUSE PROPERTY. 5) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 6,720/- W ITHOUT APPRECIATING THE FACTS THAT DURING THE COURSE OF ASSESSMENT PROC EEDINGS, THE A.O. HAS MADE VERIFICATION REGARDING RENTAL VALUE OF THE PROPERTY THROUGH INSPECTOR AND AS PER THE INSPECTORS REPORT THE HOU SE WAS FOUND LET- ABLE. THE APPELLANT CRAVE, LEAVE OR RESERVING THE RIGHT T O AMEND, MODIFY, ALTER ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. AT THE OUTSET, LD. AR SUBMITTED THAT IN LIGHT OF THE RECENT CBDT CIRCULAR NO. 3/2018 DATED 11 JULY, 2018, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AS THE TAX EFFECT INVOLVED IN THE GROU NDS RAISED BY THE REVENUE DOES NOT EXCEED THE MONETARY THRESHOLD OF RS. 20,000,00/-. 3. THE DR IS HEARD WHO HAS FAIRLY SUBMITTED THAT TH E TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20,000,00/- WHICH IS PRESCRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATE D 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. 3 ITA NO. 600/JP/2016 SHRI NAVNEET KUMAR SOMANI, BHILWARA. 4. IN ITS LATEST CBDT CIRCULAR CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018, IT HAS BEEN STATED THAT THE APPEALS MAY BE FILED ON ME RITS BEFORE THE TRIBUNAL KEEP IN VIEW THE MONETARY LIMIT AND THE CONDITION S PECIFIED BELOW. THE MONETARY LIMIT PRESCRIBED FOR FILING APPEALS BEFORE THE TRIBUNAL HAS BEEN SPECIFIED AT RS. 20,00,000/-. IT HAS BEEN CLARIFIED THE TAX EFFECT SHALL INCLUDE THE APPLICABLE SURCHARGE AND CESS. IN PARA NO. 13, IT HAS BEEN FURTHER STATED THAT THE SAID CIRCULAR SHALL ALSO APPLY RETROSPECTI VELY TO PENDING APPEALS AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 5. IN THE FACTS OF THE PRESENT CASE, TAX EFFECT IN REVENUES APPEAL HAS BEEN STATED TO BE RS 11.42 LAKHS ON ADDITIONS OF RS 32.56 LAKHS WHICH IS BELOW THE PRESCRIBED THRESHOLD OF RS 20 LACS. IN LI GHT OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018, THE APPEAL FILED BY THE REVENUE IS HER EBY DISMISSED AS NOT PRESSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17/07/2018 SD/- SD/- FOT; IKWY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 17/07/2018. DAS/ 4 ITA NO. 600/JP/2016 SHRI NAVNEET KUMAR SOMANI, BHILWARA. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CENTRAL CIRCLE, AJMER. 2. IZR;FKHZ@ THE RESPONDENT- SH. NAVNEET KUMAR SOMANI, BHILWARA. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 600/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR