ITO, Jamshedpur V. Shri Ravi Rungta, Jamshedpur

ITA 7/RAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0009 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 07 /RAN/2016 ASSESSMENT YEAR : 2009 - 2010 ITO, WARD 2(4), JAMSHEDPUR VS. SHRI RAVI RUNGTA, PROP. M/S. RUNGTA ENTERPRISES, ANUSUYA SADAN, Q ROAD, BISTUPUR, JAMSHEDPUR PAN/GIR NO. ACGPR 9248 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 8 /12/ 2016 DATE OF PRONOUNCEMENT : 8 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE REVENUE AGA INST THE ORDER OF CIT(A) - JAMSHEDPUR , DATED 28.9.2015 , FOR THE ASSESSMENT YEAR 2009 - 2010 . 3. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: 1. THE LD CIT(A)JAMSHEDPUR IS NOT JUSTIFIED IN ALLOWING RELIEF OF RS. 3,33,292/ - U/S 40(A)(IA) OF THE I.T.ACT STATING IN THE APPELLATE ORDER THAT THE ASSESSEE WAS NOT LIABLE TO DEDUCT TAX AT SOURCE U/S 194A OF THE ACT AND ADDITION U/S 40(A)(IA) OF THE ACT DID NOT ATTRACT THEREFORE IN THE A SSESSEES CASE WHICH IS CONTRARY TO THE FACTS AND CIRCUMSTANCES. 2. THE LD CIT (A) JAM SH E DPUR IS NOT JUSTIFIED IN DELETING THE ADDITION OF RS. 1028711/ - UNDER THE HEAD SHORT TERM CAPITAL 2 ITA NO. 07/RAN/2016 ASSESSMENT YEAR :2009 - 2010 GAINS ON ACCOUNT OF THE SALE OF UNITS OF HDFC MUTUAL FUND (CONFIRMING THE ADDITION OF RS. 36607/ - ONLY) STATI NG IN HIS APPELLATE ORDER TH AT REDEMPTION HAS NOT BEEN MAD E BY THE ASSESSEE ON PURCHASE PRICE WHICH SHOWS THAT THERE WAS NO GAIN AND THE INCOME EARNED WAS DIVIDEND INCOME AND NOT CAPITAL GAIN WHICH IS CONTRARY TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 3.THE LD CIT(A) JAMSHEDPUR IS NOT JUSTIFIED IN DELETING THE ADDITION OF RS .95 , 952/ - OUT OF RS. 97,950/ - WHICH WAS ADD DUE TO A DIFFERENCE OF RS. 97,950/ - FOUND IN GROSS PROFIT FIGURE AS PER FORM NO 409 JVAY AT RS.17,11,98 8/ - AND RS. 16,14,038/ - IN P & L A/C. THE LD CIT(A) CONFIRMED THE ADDITION OF RS. 1298/ - AND DELETED THE ADDITION OF RS. 95,952/ - STATING THAT DIFFERENCE IN GP HAS ARISEN DUE TO CLAIM OF EXPENSES OF CARRIAGE ONWARDS OF RS., 92,948/ - AND COLLIE AND WAGES AT RS. 6,300/ - WHICH IS CONTRA RY TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE LD CIT(A) JAMSHEDPUR IS NOT JUSTIFIED IN REDUCING THE ESTIM AT ES OF MONTHLY WITHDR A WAL FOR PERSONAL EXPENSES FROM RS. 3,00,000/ - (RS. 25,000/ - PER MONTH)TO RS. 1,20,000/ - (RS. 10,000/ - ) WITHOUT ANY FACT UAL GROUND; WHICH IS CONTRARY TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. AT THE OUTSET, LD D.R. SUBMITTED THAT IN THIS APPEAL, LD CIT(A) HAS ALLOWED RELIEF OF RS.3,33,292/ - U/S.40(A)(IA) OF THE ACT, RS.10,28,711/ - UNDER THE HEAD SHORT TERM CAPITAL GAINS AND R S.95,952/ - UNDER THE HEAD DIFFERENCE IN GROSS PROFIT AND DELETION OF RS.1,80,000/ - ON P ERSONAL DRAWINGS. THUS, THE TOTAL RELIEF ALLOWED BY THE LD CIT(A) WORKS OUT TO RS.16,37,955/ - AND THE TAX EFFECT ON THIS AMOUNT IS RS.5,07,766/ - . HE, THEREFORE, SUBMITTED THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AS THE TAX EFFECT INVOLVED IS L ESS THAN RS.10, 00, 000/ - IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 . 5. IN VIEW OF THE ABOVE SUBMISSION OF THE LD D.R. THE APPEAL FILED BY THE REVENUE IS DISMISSED. 3 ITA NO. 07/RAN/2016 ASSESSMENT YEAR :2009 - 2010 6 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED . ORDER PRO NO UNCED IN THE OPEN COURT ON 8 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 8 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : ITO, WARD 2(4), JAMSHEDPUR 2. THE RESPONDENT. SHRI RAVI RUNGTA, PROP. M/S. RUNGTA ENTERPRISES, ANUSUYA SADAN, Q ROAD, BISTUPUR, JAMSHEDPUR 3. THE CIT(A) JAMSHEDPUR 4. CIT , JAMSHEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//