The DCIT, Circle-1(1)(1), Ahmedabad V. B. Zaveri Jewels Pvt. Ltd., Ahmedabad

ITA 649/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9379 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 15-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Tax effect
• Section: 268A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.649/AHD/2017 / ASSTT.YEAR : 2010-11 DCIT, CIR.(1)(1)(1) AHMEDABAD. VS. B. ZAVERI JEWELS P.LD. C/O. ARUNBHAI SONI, 1 SHIKSHAPATRI BUNGALOWS SCIENCE CITY ROAD, SOLA AHMEDABAD 380 060 PAN: AADCB 3832 B ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI VINOD TANWANI, AR ASSESSEE BY : NONE / DATE OF HEARING : 30/08/2019 / DATE OF PRONOUNCEMENT: 23/09/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST TH E ORDER OF THE LD.CIT(A), GANDHINAGAR DATED 20.12.2016 PASSED FOR THE ASSESSMENT YEAR 2010-11. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: (A) THAT THE LD.CIT(A) ERRED IN LAW AND ON FACTS I N DELETING THE ADDITION OF RS.19,60,494/- MADE ON ACCOUNT OF DISAL LOWANCE OF EXPENSES BEING 25% OF THE TOTAL EXPENSES. (B) THAT THE LD.CIT(A) ERRED IN TAW AND ON FACTS IN DELETING THE ADDITION OF RS.1,00,00,000/- MADE U/S 68 OF THE AC T AN ACCOUNT OF UNEXPLAINED CASH CREDIT IN THE CASE OF M/SA.A. J EWELS. ITA NO.649/AHD/2017 2 3. THE AFTER GOING THROUGH THE GROUNDS, WE NOTICED THAT TOTAL ADDITION DISPUTED BEFORE THE TRIBUNAL IS RS.1,19,60,494/- (R S.19,60,494/- PLUS RS.1,00,00,000/-). THEREFORE, TOTAL TAX INVOLVED W OULD NOT BE MORE THAN RS.50 LAKHS. THEREFORE, WE ENQUIRED WITH THE LD.DR WHETHER TAX EFFECT ON THE AGGREGATE OF DISPUTED SUM EXCEEDS RS. 50 LAKHS OR NOT, AND WHETHER CBDT INSTRUCTION NO.17 OF 2019 DATED 8. 8.2019 APPLICABLE TO THE PRESENT CASE OR NOT, TO WHICH, TH E LD.DR DID NOT DISPUTE THE SAME, BUT LEFT TO THE TRIBUNAL TO DISPO SE OF THE APPEAL IN ACCORDANCE WITH LAW. 4. ON DUE CONSIDERATION OF THE RECORD AND ON PERUSA L OF CBDT INSTRUCTION NO.17 OF 2091 DATED .8.2019 WE ARE OF T HE VIEW THAT THE PRESENT APPEAL OF THE REVENUE FALLS WITHIN THE PURV IEW OF THE CBDT INSTRUCTION CITED (SUPRA). IT IS NOT DISPUTED BY TH E REVENUE THAT TAX EFFECT ON THE DISPUTED ADDITION IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISI ONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON VERIFICATIO N AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUE'S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE AP PEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 23 RD SEPTEMBER, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 23/09/2019