ITO 23(3)(1), MUMBAI V. PRATIMA B. JADHAV, MUMBAI

ITA 6992/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88447 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2015
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 10-03-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 22-11-2012
• Court: TRIBUNAL
• Department Lawyers: IN CIRCUMSTANCES OF CA SE
• Keywords: Retrospective amendment; Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI VK;DJ VIHYH; VF/KDJ.K] LH U;K;IHB EQACBZ BEFORE SHRI VIJAY PAL RAO , JUDICIAL MEMBER AND SHRI RAJENDRA, ACCOUNTANT MEMBER JH FOT; IKY JKO] U;KF;D LNL; ,OA JH JKTSUNZ] YS[KK LNL; DS LE{K ITA NO. 6992 /MUM/201 2 ASSESSMENT YEAR: - 2005 - 06 I.T.O. 23(3)(1) ROOM NO. 401, 4 TH FLOOR, C - 10, PRATYAKSHKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E) MUMBAI 51 VS.` PRATIMA B. JADHAV 302, KAILASH DHAM, G.V. SCHEME ROAD NO. 4 CHA WRE WADI, MULUND (E), MUMBAI 81. APPELLANT / VIHYKFKHZ RESPONDENT / IZR;FKHZ ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 25.9.2012 OF CIT(A) FOR THE A.Y. 2005 - 06 . THE REVENUE HAS RAISED FOLLOWING GROUNDS: - 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE L EARNED CIT(A) WAS JUSTIFIED IN DELETING ADDITION OF RS. 9,52,775/ - MADE BY THE ASSESSING OFFICER U/S. 68 OF THE ACT WITHOUT APPRECIATING THAT BOLTON PROPERTIES LTD. IS A PENNY STOCK CO. AND THE SHARE TRANSACTIONS WERE NOT RECORDED ON ANY STOCK EXCHANGE AN D THE WHOLE TRANSACTION RELATING TO SHARES OF MIS BOLTON PROPERTIES LTD. LIKE PURCHASE IN CASH AND TRANSFER OF SHARES AFTER 10 YEARS OF PURCHASE IS STAGE MANAGED AND WAS DONE WITH A MOTIVE TO BRING UNACCOUNTED CASH IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE WITHOUT PAYMENT OF TAXES. REVENUE BY / JKTLP DH VKSJ LS SHRI PREMANAND J. ASSESSEE BY / FU/KKZFJRH FD VKSJ LS SHRI MANISH SHETH DATE OF HEARING 10.03.2015 DATE OF PRONOUNCEMENT 10 .03.2015 M/S. PROLIFIC CONSULTANCY SERVICES PVT. LTD. 2 | P A G E 2. AS IT IS CLEAR FROM THE GROUNDS RAISED BY THE REVENUE THAT THE ISSUE INVOLVED IN THE REVENUES APPEAL IS REGARDING THE ADDITION OF RS. 9,52,775/ - MADE U/S 68 OF THE INCOME TAX ACT WAS DELETED BY THE CIT(A) . ADMITTEDLY IN THIS CASE THE TAX EFFECT ON THE DISPUTED ISSUE IS LESS THAN FOUR LAKHS. NOW IN VIEW OF INSTRUCTION NO. 5/2014, DATED 10.07.2014, THE REVENUE SHOULD NOT FILE ANY APPEAL BEFORE THE TRIBUNAL, WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 4,00,000 / - . THE HONBLE BOMBAY HIGH COURT TIME AND AGAIN HELD THAT THE INSTRUCTIONS/CIRCULARS PRESCRIBING MONETARY LIMIT FOR FILING OF THE APPEAL WILL HAVE RETROSPECTIVE EFFECT AND WOULD BE APPLICABLE ON PENDING APPEAL ALSO. IN THE CASE OF CIT VS. SHRI MAHDHUKAR K . INAMDAR (HUF) THANE IN ITA NO. 1021 TO 1025 OF 2008, VIDE ORDER DATED 02.10.2009, THE HONBLE HIGH COURT WHILE INTERPRETING THE CBDT CIRCULAR DATED 15.05.2008, HELD THAT SUCH CIRCULARS WILL BE APPLICABLE ON THE OLD APPEAL ALSO. THEIR LORDSHIPS HAVE ALSO REFERRED TO THE EARLIER DECISIONS OF THE HONBLE BOMBAY HIGH COURT. IN VIEW OF THE AFORESAID BINDING PRECEDENCE OF THE HONBLE JURISDICTIONAL HIGH COURT, WE HOLD THAT THE APPEAL FILED BY THE REVENUE IN THE PRESENT CASE IS NOT MAINTAINABLE AS THE TAX EFFEC T IS LESS THAN FOUR LAKHS. ACCORDINGLY THE APPEAL FILED BY THE REVENUE IS TREATED AS DISMISSED. 3 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED ORDER PRONOUCNED IN THE OPEN COURT ON THIS 10 TH DAY OF MARCH 2015 VKNS'K DH ?KKS'K.KK [KQYS U;K;KY; ES FNUKAD 10 EKPZ 2015 DKS DH XBZA SD/ - SD/ - ( RAJENDRA ) (VIJAY PAL RAO) ( ACCOUNTANT MEMBER / YS[KK LNL; ) (JUDICIAL MEMBER/ U;KF;D LNL; ) MUMBAI DATED 10 .03.2015 SKS SR. P.S, M/S. PROLIFIC CONSULTANCY SERVICES PVT. LTD. 3 | P A G E COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI