ITO 24(2)(4), MUMBAI V. MAZAHIR M RAHIM, MUMBAI

ITA 6518/MUM/2011

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2852 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 02-12-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 27-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 6518/MUM/2011 ASSESSMENT YEAR: 2005-06 THE ITO 24 (2)(4), ROOM NO. 605, C-13, BKC BANDRA (E), MUMBAI- 400051. VS. MA ZAHIR M. RAHIM, MEHFUZ, PLOT NO. 82, RSC 14. MALWANI, SAMTA NAGAR COMPLEX, MALAD(W), MUMBAI. PAN- AAGPM4539C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. AKHILENDRA PRATAP YADAV RESPONDENT BY : NONE DATE OF HEARING: 22/06/2016 DATE OF PRONOUNCEMENT: 22/06/2016 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAI NST ORDER DATED 18/07/2011 PASSED BY THE LD CIT(APPEALS)-34, MUMBAI FOR THE AS SESSMENT YEAR 2005-06. 2. THE REVENUE HAS CHALLENGED THE IMPUGNED ORDER O N FOLLOWING EFFECTIVE GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 14 ,99,000/- ON ACCOUNT OF UNEXPLAINED CREDIT WITHOUT APPRECIATING THE DETAILED REASONS GIVEN BY THE AO IN THE ASSESSMENT ORDER AND WITHOUT CONSIDERING THE FACT THE ASSESSEE FAILED TO EXPLAIN AS TO WHY THE SAID 2 ITA NO. 6518/MUM/2011 ASSESSMENT YEAR: 2005-06 AMOUNT WAS REFLECTING AS ADVANCE RECEIVABLE, HENCE TAXABLE IN THIS YEAR. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE ON A CCOUNT OF UNEXPLAINED RECEIPTS AMOUNTING TO RS. 6,00,000/-IGN ORING THE FACT THE ASSESSEE FAILED TO EXPLAIN THE CREDITWORTHINESS OF PERSON FROM WHOM AMOUNT RECEIVED. 3. AT THE OUTSET, THE LD. DEPARTMENTAL REPRESENTAT IVE POINTED OUT THAT THE TAX INVOLVED IN THIS CASE DOES NOT EXCEED RS. 10,00,000 /- AS THE QUANTUM IN DISPUTE IS RS. 20,99,000/- ONLY. AS PER THE CBDT C IRCULAR NO. 21 OF 2015, DATED 10 TH DECEMBER, 2015, NEW GUIDELINES OF MONETARY LIMIT O F FILING OF APPEALS BY THE DEPARTMENT HAS BEEN ISSUED, WHEREBY THE TAX EFFECT FOR FILING OF APPEAL BEFORE THE ITAT HAS BEEN PRESCRIBED AS AMOUN T EXCEEDING RS. 10 LAKHS. WE ALSO FIND THAT THE ISSUE RAISED IN APPEAL DOES N OT FALL UNDER ANY OF THE EXCEPTIONS SPECIFIED IN PARA 8 OF THE CIRCULAR. SIN CE, IT HAS BEEN SPECIFICALLY CLARIFIED THAT THE INSTRUCTION WILL APPLY RETROSPEC TIVELY TO ALL THE PENDING APPEALS, THE PRESENT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. WE, THEREFORE, DISMISS THE SAME IN LIMINE . ORDER PRONOUNCED IN THE OPEN COUR T ON 22 ND JUNE, 2016 SD/- SD/- ( B.R.BASKARAN ) (RAM LAL NEGI) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 22/06/2016 3 ITA NO. 6518/MUM/2011 ASSESSMENT YEAR: 2005-06 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A)- 4. / CIT 5. !' , $ !'% , / DR, ITAT, MUMBAI 6. &' ( / GUARD FILE. / BY ORDER, ) //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI PRAMILA