ITO, New Delhi V. Sh. Rajesh Kumar Chawla, New Delhi

ITA 601/DEL/2010

• Counselvise Citation: 60120114 RSA 2010
• Duration Of Justice: 1 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 25-10-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 08-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Assessee Lawyers: N S BHATNAGAR
• Keywords: Unexplained cash credit; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI A.N. PAHUJA ITA NO. 601/DEL/2010 ASSTT. YR: 2007-08 INCOME-TAX OFFICER, VS. SHRI RAJESH KUMAR CHAWL A, WARD 41(2), NEW DELHI. H. NO. 87, BLOCK-13, POCKE T-9, SECTOR-4, ROHINI, NEW DELHI. PAN/GIR NO. ADEPC6636R (APPELLANT ) ( RESPONDENT ) APPELLANT BY : SMT. PRATIMA KAUSHIK SR. DR RESPONDENT BY : SHRI N.S. BHATNAGAR, ADV. O R D E R PER R.P. TOLANI, J.M : THIS IS REVENUES APPEAL AGAINST CIT(A)S ORDER DAT ED 19-11-2009 RELATING TO A.Y. 2007-08. FOLLOWING GROUNDS ARE RAI SED 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE FOLL OWING ADDITIONS RIGHTLY MADE BY THE AO BY ACCEPTING THE FRESH EVIDENCE IN CONTRAVENTION OF RULE 46A OF I.T. RULES :- I) ADDITION OF RS. 2,34,875/- ON ACCOUNT OF INVESTMENT MADE IN JEWELLERY II) ADDITION OF RS. 3,58,500/- ON ACCOUNT OF LOW HOUSEH OLD WITHDRAWALS. III) ADDITION OF RS. 72,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDITS. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET SUBMITTED THAT THE TAX EFFECT INVOLVED IN REVENUES APPEAL IS LESS THAN RS . 3 LACS AND THEREFORE IN ITA 601/DEL/10 RAJESH KUMAR CHAWLA 2 VIEW OF CBDT INSTRUCTIONS, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AND MAY BE REJECTED AS SUCH. 3. LEARNED DR ON THE OTHER HAND, CONTENDS THAT THIS IS AN OLD APPEAL FOR WHICH THE TAX LIMIT WAS RS. 2 LACS, WHICH SHOULD BE MADE APPLICABLE TO THIS CASE. 4. LEARNED COUNSEL FOR THE ASSESSEE IN REJOINDER VE HEMENTLY ARGUES THAT NEW TAX LIMIT OF RS. 3 LACS WILL APPLY TO OLD APPE ALS ALSO. RELIANCE IS PLACED ON HONBLE DELHI HIGH COURT DECISION DATED 18-2-201 1 RENDERED IN ITA NO. 230/2011 IN THE CASE OF CIT V. RAJAN RAMANEE; AND THE ORDER OF ITAT DELHI BENCH A DATED 4-3-2011 IN ITA NO. 4514/DEL/ 2010 IN THE CASE OF ITO V. BHAVYA SOFTECT (P) LTD., HOLDING AS UNDER: 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE TAX EFFECT IN THE PRESENT CASE IS BELOW RS. 3 LAKH AND WE FIND THAT A S PER THIS BOARD INSTRUCTION NO. 3 DATED 9-2-2011, THE LIMIT O F TAX EFFECT FOR FILING THE APPEAL BEFORE THE TRIBUNAL HAS BEEN INCREASED TO RS. 3 LAKHS AND THE SAME FOR FILING APPEAL BEFORE H ONBLE HIGH COURT HAS BEEN INCREASED TO RS. 10 LAKHS. IN THE CA SE OF CIT V. RAJAN RAMANEE (SUPRA), THE HONBLE DELHI HIGH COURT HAS APPLIED THIS BOARD INSTRUCTION DATED 9-2-2011 AND D ISMISSED THE APPEAL OF THE REVENUE BECAUSE OF LOW TAX EFFECT. IN THAT CASE ALSO, THE APPEAL WAS FILED BY THE REVENUE BEFORE TH E HONBLE DELHI HIGH COURT PRIOR TO THE DATE OF THIS BOARD IN STRUCTION AS SUBMITTED BY LD. AR OF THE ASSESSEE AND HENCE, WE D O NOT FIND ANY MERIT IN THE SUBMISSION OF THE LD. DR OF THE R EVENUE THAT THIS BOARD INSTRUCTION IS APPLICABLE ONLY TO THOSE APPEALS WHICH ARE FILED BY THE REVENUE AFTER THE DATE OF THIS BOA RD INSTRUCTION. SINCE THIS BOARD INSTRUCTION WAS APPLIED BY HONBLE DELHI HIGH COURT TO PENDING APPEALS ALSO, THE SAME IS APPLICAB LE IN THE PRESENT CASE ALSO. LD. DR OF THE REVENUE COULD NOT SHOW THAT THE TAX EFFECT IN THE PRESENT CASE IS ABOVE RS. 3 LAKHS AND ITA 601/DEL/10 RAJESH KUMAR CHAWLA 3 HENCE, THIS APPEAL OF THE REVENUE IS NOT MAINTAINAB LE BECAUSE OF LOW TAX EFFECT AS PER BOARD INSTRUCTION NO. 3 OF 9- 2-2011. 5. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE MATERIAL AVAILABLE ON RECORD. IT IS NOT DISPUTED THAT THE T AX EFFECT INVOLVED IN REVENUES APPEAL IS LESS THAN RS. 3 LACS. RESPECTFU LLY FOLLOWING THE RATIO OF DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT V. RAJAN RAMANEE (SUPRA) AND THAT OF ITAT IN THE CASE OF ITO V. BHAV YA SOFTECT (P) LTD. (SUPRA), WE HOLD THAT RECENT CBDT INSTRUCTION NO. 3 /2011[F.NO.279/MISC.- 142/2007-ITJ] DATED 9-2-2011, INCREASING TAX LIMIT TO RS. 3 LACS FOR FILING APPEAL BEFORE THE TRIBUNAL, IS APPLICABLE TO PENDI NG APPEALS ALSO. THUS, IN VIEW OF LOW TAX EFFECT, THE PRESENT APPEAL FILED B Y THE REVENUE IS NOT MAINTAINABLE. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 25-10-2011. SD/- SD/- (A.N. PAHUJA ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 25-10-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR ITA 601/DEL/10 RAJESH KUMAR CHAWLA 4