ASSISTANT COMMISSIONER OF INCOME TAX, ALWAR V. SHRI NARENDRA KUMAR MODI, ALWAR

ITA 721/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6281 (ITAT-JAIPUR)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 25-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P P MEENA
• Keywords: Tax effect
• Section: 72(1); 28

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,O JH HKKXPUN] YS[KK LNL; LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM VK;DJ VIHY LA-@ ITA NO. 721/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR: 2013-14 THE ACIT CIRCLE-1 ALWAR CUKE VS. SHRI NARENDER KUMAR MODI A-11, NEW MANDI YARD ALWAR 301 001 LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ACBPM 1092 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY:SHRI P.P. MEENA, JCIT - DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: NONE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 20/07/2018 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 24 /07/2018 VKNS'K@ ORDER PER BHAGCHAND, AM THE APPEAL FILED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(A), ALWAR DATED 08-03-2018 FOR THE ASSESS MENT YEAR 2013-14 RAISING THEREIN FOLLOWING GROUND OF APPEAL. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN ALLOWING SET OFF OF THE BROUGHT FORWARD SHARE BUSINESS LOSS OF RS. 33,09,99 8/- AGAINST THE INCOME OF ASSESSEE ON ACCOUNT OF THE REMUNERATION AND THE INTEREST ON CAPITAL RECEIVED F ROM THE PARTNERSHIP FIRM M/S. G.M. HI-TECH WHERE THERE IS N O PROFIT AND GAINS OF BUSINESS CARRIED ON BY THE ASSESSEE A ND WITHOUT ITA NO.721/JP/2018 THE ACIT, CIRCLE 1, ALWAR VS SHRI NARENDRA KUMAR MODI, ALWAR 2 APPRECIATING THE FACT THAT THE PROVISION OF SECTION 72(1) ARE APPLICABLE ONLY ON THE INCOME OF THE ASSESSEE FALLS UNDER THE CLAUSE (I) AND NOT UNDER THE CLAUSE (V) OF SECTION 28 OF THE I.T. ACT, 1961. 2. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERI ALS 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 CI RCULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007- ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPA RTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DE MAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 3. 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 EXCEEDING THAN 20 LACS SHOULD BE EITH ER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 4. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DI SPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY C BDT FOR THE APPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN V IEW OF CBDT CIRCULAR ITA NO.721/JP/2018 THE ACIT, CIRCLE 1, ALWAR VS SHRI NARENDRA KUMAR MODI, ALWAR 3 NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APP EAL OF THE DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHDRAWN. 5.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24-07-20 18. SD/- SD/- FOT; IKY JKO HKKXPUN (VIJAY PAL RAO) ( BHAGCHAND) U;KF;D LNL; / JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 24 /07/ 2018 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE-1, ALWAR 2. IZR;FKHZ@ THE RESPONDENT- SHRI NARENDRA KUMAR MODI, ALWAR, 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.721 /JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR