INCOME TAX OFFICER, WARD-2-2, JAIPUR V. SHRI RAVI PRAKASH PALIWAL, JAIPUR

ITA 608/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2844 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENAJCIT
• Assessee Lawyers: R K MATRA
• Keywords: Gift; Tax effect
• Section: 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 608/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 INCOME TAX OFFICER, WARD 2(2), JAIPUR. CUKE VS. RAVI PRAKASH PALIWAL, 9, PURANI SABJI MANDI, AJMERI GATE, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABOPP 9805 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT IZR;K{KSI.K @ C.O. NO. 22/JP/2018 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 608/JP/2018) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR 2009-10 RAVI PRAKASH PALIWAL, 9, PURANI SABJI MANDI, AJMERI GATE, JAIPUR. CUKE VS. INCOME TAX OFFICER, WARD 2(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABOPP 9805 D IZR;K{KSID@ OBJECTOR IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SMT. ROSHANTA MEENA(JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI R.K. MATRA (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 24/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 29/08/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, JM: THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJEC TION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-I, JAIPUR DATED ITA 608/JP/2018 & C.O. 22/JP/2018_ ITO VS RAVI PRAKASH PALIWAL 2 13/02/2018 FOR THE A.Y. 2009-10. THE GROUNDS TAKEN B Y THE REVENUE AND THE ASSESSEE ARE AS UNDER:- GROUNDS OF REVENUES APPEAL: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION O F RS. 37,98,283/- AND RS. 18,99,142/- MADE BY THE A.O. ON ACCOUNT OF SHORT TE RM CAPITAL GAIN AND LONG TERM CAPITAL GAIN? 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS JUSTIFIED IN CONSIDERING THE TRANSFE R AS GIFT, WHEN THE TRANSFEREE IS NOT RELATIVE OF THE ASSESSEE. GROUNDS OF ASSESSEES C.O.: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD CIT(A) IS WRONG, UNJUST AND HAS GROSSLY ERRED IN LAW IN NOT A CCEPTING PLEA OF THE APPELLANT THAT THE PROCEEDINGS INITIATED BY THE A.O . U/S 148 OF THE IT ACT, 1961 IS WRONG AND BAD IN LAW AND THEREFORE CONSEQUE NT ASSESSMENT MADE BY HIM DESERVES TO BE SET ASIDE. 2. THE APPELLANT CRAVES PERMISSION TO ADD OR TO AME ND TO ANY OF THE ABOVE GROUNDS OF APPEAL OR TO WITHDRAW ANY OF THEM. 2. FIRSTLY WE TAKE C.O. OF THE ASSESSEE. AT THE OUTS ET OF HEARING, THE LD AR OF THE ASSESSEE HAS STATED THAT HE DOESNT WISH T O PRESS THE GROUNDS SO TAKEN IN THE CROSS OBJECTION THEREFORE, THE SAME MA Y BE DISMISSED AS NOT PRESSED. ON THE OTHER HAND, THE LD DR HAS NOT RAISE D ANY OBJECTION IF THE ASSESSEE DOES NOT WANT TO PRESS THE GROUNDS OF C.O. THEREFORE, THE GROUNDS TAKEN BY THE ASSESSEE IN THE C.O. ARE DISMI SSED BEING NOT PRESSED. 3. NOW WE TAKE THE REVENUES APPEAL. AT THE TIME OF H EARING, THE LD. AR OF THE ASSESSEE HAS RAISED AN OBJECTION OF MAINTAIN ABILITY OF THE APPEAL OF ITA 608/JP/2018 & C.O. 22/JP/2018_ ITO VS RAVI PRAKASH PALIWAL 3 THE REVENUE DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO. 3 OF 2018 DATED 11 TH JULY, 2018. THE LD. A/R SUBMITTED THAT IN THE FACTS OF THE PRESENT CASE, TAX EFFECT I N REVENUES APPEAL IS STATED TO BE BELOW THE PRESCRIBED LIMIT OF RS. 20 LACS. 4. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFF ECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRES CRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAN D/ 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 PEN DING APPEALS. 6. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DE MAND/TAX EFFECT IS ITA 608/JP/2018 & C.O. 22/JP/2018_ ITO VS RAVI PRAKASH PALIWAL 4 NOT EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 7. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPTI ONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DIS PUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CB DT FOR THE APPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW O F CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF TH E DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHDRAWN. 8. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE AN D THE C.O. OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/08/2018. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 29/08/2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD 2(2), JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- SHRI RAVI PRAKASH PALIWAL, JAIPUR 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. 608/JP/2018 & CO 22/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR