ITO, JHALAWAR V. ASHOK KUMAR GOYAL, JHALAWAR

ITA 712/JPR/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6357 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 15-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J C KULHARI
• Keywords: Unexplained investment; Valuation report; Tax effect
• Section: 43(5)

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; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 712/JP/2016 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12. THE INCOME TAX OFFICER, WARD JHALAWAR. CUKE VS. SHRI ASHOK KUMAR GOYAL. PROP. M/S. ASHOK KUMAR PRAKASH CHAND, MAIN MARKET, AKLERA, JHALAWR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABGPG 8471 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI J.C. KULHARI (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI SAURAV HARSH (ADVOCATE) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 24/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 25/07/2018 VKNS'K@ ORDER PER VIJAY PAL RAO, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 05.05.2016 OF CIT (A), KOTA FOR THE ASSESSMENT YEAR 2011-12. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT (A) HAS ERRED IN : 1. DELETING TRADING ADDITION OF RS. 1,94,640/- MADE BY INVOKING PROVISIONS OF SECTION145(3) OF THE ACT. 2. DELETING ADDITION OF RS. 28,55,934/- MADE ON ACCOUN T OF UNEXPLAINED INVESTMENT IN CONSTRUCTION OF GODOWN ON THE BASIS OF THE VALUATION REPORT OF THE DISTRICT VALUA TION OFFICER. 3. DELETING ADDITION OF RS. 5,70,944/- MADE U/S 43(5) OF THE ACT BY DISALLOWING LOSS INCURRED ON ONLINE COMMODITY TR ANSACTION. 2 ITA NO. 712/JP/2016 SHRI ASHOK KUMAR GOYAL, JHALAWAR. 4. DELETING ADDITION OF RS. 40,759/- MADE BY DISALLOWI NG EXPENSES INCURRED ON SPECULATIVE TRANSACTIONS. 5. THE APPELLANT CRAVES LIBERTY TO RAISE ADDITIONAL GR OUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TIME OF HE ARING. THE DISPUTE IN THIS APPEAL OF THE REVENUE IS REGARD ING THE DISALLOWANCE/ADDITION OF RS. 36,62,277/- MADE BY THE AO WHICH WAS DELETED BY THE LD. CIT (A). THUS, ADMITTEDLY THE TAX EFFECT ON THE RELIEF GRANTED BY THE LD. CIT (A) IS THE SUBJECT MATTER OF THE REVENUES APPEAL IS NOT EXCEEDING THE LIMIT OF RS. 20 LACS AS PER CBDT CIRCULAR NO. 3 OF 2018. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRESCRIBED THR ESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER C IRCULAR NO. 21 OF 2015 DATED 10.12.2015. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 4. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT 3 ITA NO. 712/JP/2016 SHRI ASHOK KUMAR GOYAL, JHALAWAR. EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 5. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEA L OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PR ESSED/WITHDRAWN. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/07 /2018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 25/07/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE INCOME-TAX OFFICER, WARD JHAL AWAR. 2. THE RESPONDENT SHRI ASHOK KUMAR GOYAL, JHALAWA R. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 712/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 712/JP/2016 SHRI ASHOK KUMAR GOYAL, JHALAWAR.