The DCIT, 1(1), Bhopal V. M/S. Swastik Housing & Construction, Bhopal

ITA 7/IND/2014

• Counselvise Citation: 722714 RSA 2014
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 03-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Keywords: Tax effect
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER ITA NO.07/IND/2014 A.Y.2005-06 DCIT-1(1), BHOPAL. VS. M/S. SWASTIK HOUSING & CONSTRUCTION, G-1/226, SHAGUN APARTMENT, TRIANGA, BHOPAL. PAN: AANFS 9619Q (APPELLANT) (RESPONDENT) REVENUE BY : SHRI R.A. VERMA, SR.D.R. ASSESSEE(S) BY : NONE (WRITTEN SUBMISSION) /DATE OF HEARING : 09/09/2014 /DATE OF PRONOUNCEMENT: 12/09/2014 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE ARISING FRO M THE ORDER OF LEARNED CIT(A)-I BHOPAL DATED 22.10.2013 AND THE GR OUND RAISED IS REPRODUCED BELOW: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN CANCELLING THE ORDER PASSED U/S.154 DATED 15.03.2011 BY THE ASSESSING OFFICER WHEN ACTION U/S.154 WAS ADMITTED BY THE ASSESSEE AND WHEN THE LD. CIT(A) DID NOT ADJUDICATE ON THE MERIT OF DISALLOWANCE OF SECTION 40(A)(IA) IN A.Y. 2005-06 LEVYING A PENALTY OF RS.4,00,000/- U/S.271(1)(C) OF THE IT ACT. 2. AT THE OUTSET, FROM THE SIDE OF THE RESPONDENT-A SSESSEE, IT IS PLEADED THAT THE TAX EFFECT IS LESS THAN THE PRESCR IBED LIMIT FOR FILING AN APPEAL BEFORE THE TRIBUNAL, THEREFORE, THIS APPEAL OF THE REVENUE CAN BE ITA NO.07/IND/2014 DCIT-1(1) BHOPAL VS. M/S. SWASTIK HOUSING & CONSTRUCTION A.Y.2005-06 - 2 - DISMISSED ON THIS TECHNICAL REASONS. THE RELEVANT P ORTION OF THE SUBMISSION OF THE ASSESSEE IS REPRODUCED BELOW: 1. THAT THE ABOVE REFERRED DEPARTMENTAL APPEAL RELATES TO ORDER OF CIT (A)-1, BHOPAL PASSED ON 22.10.2013 DELETING ADDITION OF RS.7,58,650/- U/S. 40(A)(IA) MADE BY THE A.O. INVOKING PROVISIONS OF SECTION 154 OF THE ACT. 2. THAT THE TAX EFFECT OF THE AMOUNT INVOLVED IN THIS APPEAL IS MEREL Y RS.2,55,360/- WHICH IS LESS THAN LIMIT PRESCRIBED BY THE BOARD DIRECTING THE LOWER AUTHORITIES NOT TO FILE APPEAL WHEN TAX EFFECT IS LESS THAN 3 LAKHS BEFORE HONBLE TR IBUNAL. THE CIT(A) HAS DELETED ADDITION OF RS.7,58,650/- AND RATE OF TAX WAS 30 + 10% SURCHARGE AND 2% EDUCATION CESS. THE EFFECTIVE RATE OF TAX WAS 33.66%. 3. THE GROUND OF APPEAL NO.1 IS MISCONCEIVED AND DOES NOT ARISE EITHER OUT OF ORDER OF CIT(A) OR ORDER U/S.154 PASSED BY THE A.O. 4. THE ASSESSEE HAS NEVER CONCEDED THE ADDITION BEFORE THE A.O. 5. THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE IN VIEW OF BOARD CIRCULAR. 3. IN A SITUATION WHEN NO SERIOUS OBJECTION HAS BEE N RAISED FROM THE SIDE OF THE REVENUE AND ADMITTEDLY THE TAX EFFECT I S LESS THAN THE PRESCRIBED LIMIT THEN THIS APPEAL OF THE REVENUE SH OULD NOT HAVE BEEN FILED AS PER THE DIRECTIONS OF THE CBDT. RESULTANTL Y, THIS APPEAL OF THE REVENUE DOES NOT SURVIVE; HENCE DISMISSED. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. SD/- SD/- (P.K. BANSAL) (MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED 12/09/2014 PRABHAT KR. KESARWANI, SR. P.S. / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '# ! / THE RESPONDENT. 3. $%$&' # # ( / CONCERNED CIT 4. # # ( ( ) / THE CIT(A), INDORE 5. +,# &' , # # &' , ./ % / DR, ITAT, INDORE 6. ,01 2 / GUARD FILE. / BY ORDER, 3 33 3/ // /.# $4 .# $4 .# $4 .# $4 ( DY./ASSTT.REGISTRAR) ITAT, INDORE