ITO 21(3)(1), MUMBAI V. BAKULA HEMATLAL BADANI, MUMBAI

ITA 7063/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4583 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-11-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 04-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAVEEN GUPTA
• Assessee Lawyers: NAVIN B GANDHI
• Keywords: Income from undisclosed sources; Accommodation entries; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B , MUMBAI BEFORE SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO. 7063/MUM/2013 : (ASSESSMENT YEAR : 2005 - 06) ITO 21(3)(1), MUMBAI (APPELLANT) VS SMT. BAKULA HEMATLAL BADANI B/704, LOTUS BUILDING, HIRANANDANI GARDENS, POWAI, MUMBAI 400 076 (RESPONDENT) PAN : AAEPB6106A APPELLANT BY : SHRI NAVEEN GUPTA (DR) RESPONDENT BY : SHRI NAVIN B. GANDHI DATE OF HEARING : 14/01/2016 DATE OF PRONOUNCEMENT : 14 /01/2016 O R D E R PER AMIT SHUKLA, JM : 1. THE AFORESAID APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE IMPUGNED ORDER DT. 6.9.2013, PASSED BY CIT(A) - 22, MUMBAI FOR THE QUANTUM OF ASSESSMENT PASSED U/S 143(3) R.W.S 147 FOR THE A.Y 2005 - 06. IN THE GROUNDS OF APPEAL, THE REVENUE HAS CHALLENGED THE DELETION OF ADDITION OF RS.16,07,145/ - AS INCOME FROM UNDISCLOSED SOURCES AND RS. 8,036/ - BEING COMMISSION PAYABLE FOR TAKING ACCOMMODATION ENTRIES. 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT, THE TAX EFFECT ON THE DISPUTED ADDIT IONS ARE MUCH LESS THAN RS. 10 LACS, THEREFORE, IN VIEW OF THE LATEST CBDT CIRCULAR NO. 21 OF 2015 DT. 10.12.2015, THE APPEAL OF THE REVENUE SHOULD BE HELD TO BE NOT MAINTAINABLE. THE LD. DR ALSO ADMITTED THAT THE TAX EFFECT IS LESS THAN RS. 10 LACS. 2 SMT. BAKULA HEMATLAL BADANI ITA NO. 7063/MUM/2013 3. AFTER CONSIDERING THE TAX EFFECT ON THE DISPUTED ADDITIONS, WE FIND THAT IT IS MUCH BELOW RS. 10 LACS AND, THEREFORE, IN VIEW OF CBDT CIRCULAR ( SUPRA ) THE APPEAL OF THE DEPARTMENT IS TREATED TO BE NOT MAINTAINABLE. THE RELEVANT PARA NO. 10 OF THE CBDT CI RCULAR SPECIFICALLY PROVIDES THAT THE SAID INSTRUCTIONS SHALL APPLY RETROSPECTIVELY, WHICH FOR THE SAKE OF READY REFERENCE IS REPRODUCED HEREINBELOW. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS /TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. ACCORDI NGLY, THE APPEAL OF THE REVENUE IS TREATED AS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY, 2016. SD/ - SD/ - (RAJESH KUMAR) ACCOUNTANT MEMBER (AMIT SHUKLA) JUDICIAL MEMBER MUMBAI, DATE : 14 TH JANUARY, 2016 COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) - 22, MUMBAI 4) THE ITO 21(3)(1), MUMBAI 5) THE D.R, B BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI *SSL*