DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AJMER V. SHRI BANNA LAL JAT CONST. PVT. LTD., BHILWARA

ITA 602/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1919 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 01-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA
• Keywords: Document seized; Tax effect
• Section: 40A(3); 20

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; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 602/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2015-16. THE DEPUTY COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE, AJMER. CUKE VS. SHRI BANNA LAL JAT, NEAR BUS STAND, JAHAJPUR, BHILWARA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AFNPJ 1819 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 30.08.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30/08/2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 01.02.2018 OF LD. CIT (A)-2, UDAIPUR FOR THE ASSESSMENT YEAR 2015 -16. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS :- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 2 2,94,800/- OUT OF ADDITION OF RS. 30.09,720/- MADE BY THE AO ON AC COUNT OF UNACCOUNTED IMPREST MONEY RECEIPTS FOUND DURING THE COURSE OF SEARCH. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 2 ,80,000/- MADE U/S 40A(3) OF THE INCOME TAX ACT, 1961 DESPITE THE FACT THAT THE SAID AMOUNT WAS FOUND ON VOUCHER OF PAYMEN T. 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 1 ,73,440/- OUT 2 ITA NO. 602/JP/2018 SHRI BANNA LAL JAT, BHILWARA. OF ADDITION OF RS. 2,00,000/- MADE ON ACCOUNT OF UN ACCOUNTED RECEIPTS MADE ON ACCOUNT OF DOCUMENT SEIZED. 4. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 5 ,47,350/- OUT OF ADDITION OF RS. 6,32,171/- ON UNDISCLOSED EXPEND ITURE AS PER INCRIMINATING DOCUMENTS FOUND DURING THE SEARCH. THE APPELLANT CRAVE, LEAVE OR RESERVING THE RIGHT TO AMEND MODIFY, ALTER ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. THE DISPUTE IN THE APPEAL OF THE REVENUE IS REGA RDING DELETION OF ADDITIONS OF RS. 22,94,800/-, RS. 2,80,000/-, RS. 1,73,440/ AND RS. 5,47,350/- MADE BY THE AO ON VARIOUS ACCOUNTS. ADMITTEDLY THE TAX EFFECT IN THE REVENUES APPEAL IS NOT EXCEEDING THE LIMIT OF RS. 20 LACS AS PER CBDT CIRC ULAR NO. 3 OF 2018. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRESCRIBED THR ESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER C IRCULAR NO. 21 OF 2015 DATED 10.12.2015. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 3 ITA NO. 602/JP/2018 SHRI BANNA LAL JAT, BHILWARA. 4. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 5. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEA L OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PR ESSED/WITHDRAWN. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/08/2 018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 30 /08/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE DCIT, CENTRAL CIRCLE, AJMER. 2. THE RESPONDENT SHRI BANNA LAL JAT, BHILWARA. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 602/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 602/JP/2018 SHRI BANNA LAL JAT, BHILWARA.