ACIT, Jaipur V. MANGLAM, ARTS, Jaipur

ITA 721/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5072 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 26-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA JHA J CIT DHK
• Assessee Lawyers: DINESH CHANDRA GOYAL
• Keywords: Tax effect

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 DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO ] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO.721/JP/16 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 THE ACIT, CIRCLE-5, JAIPUR CUKE VS. M/S MANGALAM ARTS, GOVIND NAGAR (EAST) AMBER PALACE, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABFM 9591 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI DINESH CHANDRA GOYAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA JHA (J CIT ) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 04.10.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 04/10/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-2, JAIPUR DATED 18.05.2016 WHEREIN THE RE VENUE HAS TA KEN FOLLOWING GROUNDS OF APPEAL: ( 1) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 10 ,24,729/- MADE BY THE AO ON ACCOUNT OF PAYMENT MADE FOR PROVIDENT FUND CO NTRIBUTION (CONTRACTORS LIABILITY) U/S 36(IV) OF THE IT ACT, 1961. (2) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 6, 50,276/- MADE BY THE AO ON ACCOUNT OF PAYMENT MADE FOR ESI CONTRIBUTION (CONTRACTORS LIABILITY) U/S 36(IV) OF THE IT ACT, 1961. ITA NO. 721/JP/16 ACIT, CIRCLE-5, JAIPUR VS. M/S MANGALAM ARTS , JAIP UR 2 2. WE HAVE HEARD THE LD AR AND THE DR AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. DURING THE COURSE OF HEARING, THE LD AR SUBMITTED THAT THE DEMAND/ TAX EFFECT IN THIS CASE IS RS. 5,17,577/- W HICH IS BELOW THE THRESHOLD OF RS 10 LACS, THE APPEAL OF THE DEPARTMENT IS NOT MAI NTAINABLE. 2.1 UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I.T. ACT, CBDT HAS ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015(F.NO.279/MI SC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EX CEED RS.10 LACS. THE CIRCULAR SPECIFICALLY MENTIONS THAT IT WILL BE APP LICABLE TO ALL PENDING APPEALS ALSO. THUS, THE INSTANT APPEAL FILED BY THE REVENU E IS COVERED BY THE SAID CIRCULAR. 2.2. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIR ECTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING RS. 10 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES AT THE TIME OF HEARING . 2.3 THE REVENUE APPEAL IS NOT COVERED BY ANY OF T HE EXCEPTIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE DOES NOT EXCEED THE LIMIT OF RS. 10 LACS AS SET OUT BY CBDT, THE IMPUNG ED APPEAL IS NOT MAINTAINABLE. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DI SMISSED. ITA NO. 721/JP/16 ACIT, CIRCLE-5, JAIPUR VS. M/S MANGALAM ARTS , JAIP UR 3 ORDER PRONOUNCED IN THE OPEN COURT ON 04/10 /2016. SD/- SD/- ( KUL BHARAT ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 04/10/2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE-5, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S MANGALAM ARTS, JAIPUR 3. VK;DJ VK;QDR@ CIT II, JAIPUR 4. VK;DJ VK;QDRVIHY@ THE CIT(A)-II, JAIPUR 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 721/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR