ACIT, Ajmer V. SACHIN RATHI,

ITA 671/JPR/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6289 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 21-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BK GUPTA
• Keywords: Unexplained investment; Tax effect; Retraction
• Section: 132

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; IKWY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 671/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2013-14. THE ACIT, CENTRAL CIRCLE, AJMER. CUKE VS. SHRI SACHIN RATHI D-16, BASANT VIHAR, BHILWARA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAAPR 7283 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI B.K. GUPTA (CIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI MUKESH SONI (C.A.) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 16/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 17/07/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-2, UDAIPUR DATED 11.04.2016 FOR AY 2013-14. THE GROUND S RAISED BY THE REVENUE ARE AS UNDER:- 1) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 50,00,000/- M ADE ON ACCOUNT OF DISCLOSURE OF UNDISCLOSED ADVANCES GIVEN FOR PURCHA SE OF LAND DURING THE COURSE OF SEARCH WITHOUT APPRECIATING THE FACTS THA T DURING THE COURSE OF SEARCH OPERATION THE ASSESSEE HIMSELF ADMITTED AND DISCLOSED ADVANCE OF RS. 50,00,000/- GIVEN AGAINST LAND IN HIS STATEMENT REC ORDED ON OATH U/S 132(4) OF THE I.T. ACT AND THE STATEMENT RECORDED DURING T HE COURSE OF SEARCH ACTION U/S 132 OF THE ACT BEING IN PRESENCE OF INDEPENDENT WITNESS HAS OVERRIDING OF EFFECT OVER SUBSEQUENT RETRACTION. 2 ITA NO. 671/JP/2016 SHRI SACHIN RATHI, BHILWARA. 2) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 10,00,000/- M ADE ON ACCOUNT OF DISCLOSURE OF UNEXPLAINED INVESTMENT IN JEWELLERY D URING THE COURSE OF SEARCH WITHOUT APPRECIATING THE FACTS THAT DURING THE COUR SE OF SEARCH OPERATION THE ASSESSEE HIMSELF ADMITTED AND DISCLOSED UNEXPLAINED INVESTMENT IN JEWELLERY OF RS. 10,00,000/- IN HIS STATEMENT RECORDED ON OAT H U/S 132(4) OF THE I.T. ACT AND THE STATEMENT RECORDED DURING THE COURSE OF SEARCH ACTION U/S 132 OF THE ACT BEING IN PRESENCE OF INDEPENDENT WITNESS AS OVERRIDING OF EFFECT OVER SUBSEQUENT RETRACTION. THE APPELLANT CRAVE, LEAVE OR RESERVING THE RIGHT T O AMEND, MODIFY, ALTER ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFOR E OR DURING THE HEARING OF THIS APPEAL. 2. AT THE OUTSET, LD. AR SUBMITTED THAT IN LIGHT OF THE RECENT CBDT CIRCULAR NO. 3/2018 DATED 11 JULY, 2018, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AS THE TAX EFFECT INVOLVED IN THE GROUNDS RAISED BY TH E REVENUE DOES NOT EXCEED THE MONETARY THRESHOLD OF RS. 20,000,00/-. 3. THE DR IS HEARD WHO HAS FAIRLY SUBMITTED THAT TH E TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20,000,00/- WHICH IS PRESCRIBED 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. 4. IN ITS LATEST CBDT CIRCULAR CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018, IT HAS BEEN STATED THAT THE APPEALS MAY BE FILED ON MERITS BEFORE THE TRIBUNAL KEEP IN VIEW THE MONETARY LIMIT AND THE CONDITION SPECIFIED BELO W. THE MONETARY LIMIT PRESCRIBED FOR FILING APPEALS BEFORE THE TRIBUNAL HAS BEEN SPE CIFIED AT RS. 20,00,000/-. IT HAS BEEN CLARIFIED THE TAX EFFECT SHALL INCLUDE THE APP LICABLE SURCHARGE AND CESS. IN PARA NO. 13, IT HAS BEEN FURTHER STATED THAT THE SAID CI RCULAR SHALL ALSO APPLY RETROSPECTIVELY TO PENDING APPEALS AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED . 5. IN THE FACTS OF THE PRESENT CASE, TAX EFFECT IN REVENUES APPEAL HAS BEEN STATED TO BE RS 18.37 LAKHS ON ADDITIONS OF RS 60.0 0 LAKHS WHICH IS BELOW THE 3 ITA NO. 671/JP/2016 SHRI SACHIN RATHI, BHILWARA. PRESCRIBED THRESHOLD OF RS 20 LACS. IN LIGHT OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018, THE APPEAL FILED BY THE REVENUE IS HER EBY DISMISSED AS NOT PRESSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17/07/2018 SD/- SD/- FOT; IKWY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 17/07/2018. DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CENTRAL CIRCLE, AJMER. 2. IZR;FKHZ@ THE RESPONDENT- SH. SACHIN RATHI, BHILWARA. 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. 671/JP/2016} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR