The Incomet-ax Officer, Jammu V. M/s. Hemkund Transport Services, Jammu

ITA 607/ASR/2014

• Counselvise Citation: 60720914 RSA 2014
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 08-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Tax effect

Judgement Text

ITA NO.607(ASR)/2014 IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.607(ASR)/2014 ASSESSMENT YEAR:2009-10 PAN :AAEFM4113R INCOME TAX OFFICER, VS. M/S. HEMKUND TRANSPORT SER VICE, WARD 1(1), JAMMU. TRANSPORT NAGAR, JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. V.K.SINGH, DR RESPONDENT BY:SH.JOGINDER SINGH, CA DATE OF HEARING:19/02/2015 DATE OF PRONOUNCEMENT: 19.02.2015 ORDER PER A.D.JAIN, JM: THIS IS DEPARTMENTS APPEAL FOR THE ASSESSMENT YEA R 2009-10 AGAINST THE ORDER OF THE CIT(A), JAMMU DATED 22.07.2014. T HE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. WHETHER THE CIT(A), JAMMU WAS RIGHT IN LAW TO A LLOW RELIEF IN RESPECT OF ADDITION ON ACCOUNT OF ADHOC DISALLOWANC E OF EXPENSES AS THE AO HAS REQUESTED THE CIT(A) IN THE REMAND REPORT THAT THE ASSESSEE DID NOT DESERVE ANY RELIEF IN RESPECT OF THE SAME. IT A NO.607(ASR)/2014 2 2. WHETHER THE CIT(A),JAMMU WAS RIGHT IN LAW IN AL LOWING RELIEF IN RESPECT OF ADDITION ON ACCOUNT OF BOGUS CREDITOR S WHEN THE ASSESSEE HAD FAILED TO ESTABLISH THEIR GENUINENESS DURING THE ASSESSMENT PROCEEDINGS. 3. WHETHER THE CIT(A),JAMMU WAS RIGHT IN LAW IN AL LOWING RELIEF ON ACCOUNT OF UNEXPLAINED PROVISION FOR EXPENSES AS THE AO HAS REQUESTED THE CIT(A) IN THE REMAND REPORT THAT THE ASSESSEE DID NOT DESERVE ANY RELIEF IN RESPECT OF THE SAME. 2. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE A SSESSEE RAISED A PRELIMINARY OBJECTION THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN RS.4 LACS. THEREFORE, THE PRESENT APPEAL FILED BY THE DEPARTMENT MAY BE DISMISSED, AS THE SAME IS NOT MAINTAINABLE B EING CONTRARY TO CBDTS INSTRUCTION NO.5 OF 2014 DATED 10 TH JULY, 2014. 3. ON THE OTHER HAND, THE LD. DR RELIED UPON THE OR DERS OF THE AUTHORITIES BELOW. 4. AFTER HEARING BOTH THE PARTIES, IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.4,00,000/-. HENCE, AS P ER CBDT INSTRUCTION NO. 5 OF 2014, DATED 10 TH JULY, 2014, WHICH IS BINDING ON THE DEPARTMENT, TH E DEPARTMENT IS PRECLUDED FROM FILING THE PRESENT APP EAL. WE ALSO FIND THAT THE REVENUE HAS FILED THE PRESENT APPEAL ON 08.10.201 4 MUCH AFTER THE ISSUANCE OF THE SAID CBDT INSTRUCTION NO. 5 OF 2014, WHICH I S EFFECTIVE FROM 10 TH JULY, 2014. THEREFORE, IN OUR CONSIDERED OPINION, T HE SAID INSTRUCTION OF CBDT IS BINDING UPON THE DEPARTMENT AND THE PRESENT APPEAL HAS BEEN FILED IT A NO.607(ASR)/2014 3 CONTRARY TO THE SAID INSTRUCTION ISSUED BY THE CBD T. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS DISMISSED, AS NOT MA INTAINABLE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19TH FEBRUARY, 2015. SD/- SD/- (B.P. JAIN) (A.D.JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19TH FEBRUARY, 2015 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. HEMKUND TRANSPORT SERVICE, JAMMU. 2. THE ITO WARD-1(1), JAMMU. 3. THE CIT(A), JAMMU 4. THE CIT, JAMMU. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.