Income Tax Officer, Ward-1(3), Ajmer V. Shri Atish Kapoor, Pune

ITA 728/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4586 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 28-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J. C. KULHARI
• Keywords: Tax effect
• Section: 201; 20

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; IKWY 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. 728/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2015-16 INCOME- TAX OFFICER WARD-1(3), AJMER CUKE VS. SHRI ATISH KAPOOR, GROUP CENTRE CRPF, TALEGAON DABHADE, PUNE (MAHARSHTRA) LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AZQPK7583D 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 P.C. PARWAL (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 01/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 02/08/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT (A)- AJMER DATED 22.03.2018 FOR ASSESSMENT YEAR 201 5-16 WHEREIN THE REVENUE HAS TAKEN THE FOLLOWING SOLE GROUNDS OF APP EAL:- ON FACTS AND IN LAW, THE LD CIT(A), AJMER ERRED IN :- 1. ALLOWING INDEXATION FROM THE FY 1981-82 BY TAKING F AIR MARKET VALUE OF RESIDENTIAL PROPERTY AS ON 01.04.1981 AS C OST OF ACQUISITION WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS ACQUIRED THE PROPERTY ON 15.08.2006 AND NOT DURING THE FY 1981-82. ITA NO. 728/JP/2018 ITO, WARD-1(3), AJMER VS. SHRI ATISH KAPOOR, GROUP CENTRE, MAHARSHTRA 2 2. ALLOWING THE EXEMPTION U/S 54 OF RS. 10,69,308/- FO R INVESTMENT IN NEW RESIDENTIAL HOUSE WITHOUT APPRECI ATING THE FACT THAT THE ASSESSEE FAILED TO PRODUCE ANY INVOIC E/BILL AND DOCUMENTARY EVIDENCE IN SUPPORT OF CLAIM AND IT HAS ALSO NOT BEEN PROVED THAT THE CASH AVAILABLE OUT OF WITHDRAW AL OF RS. 18,04,305/- WAS ACTUALLY UTILIZED FOR THE CONSTRUCT ION OF THE RESIDENTIAL HOUSE, AS HELD BY THE CIT(A). 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS RAISED AN OBJECTION OF MAINTAINABILITY OF THE APPEAL OF THE R EVENUE DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO . 3 OF 2018 DATED 11 TH JULY, 2018. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL COMES TO RS 12,58,934 LESS THAN 20 LACS WHICH IS PRESCRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3 /2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR 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 DEMAN D/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LAC S . 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 ITA NO. 728/JP/2018 ITO, WARD-1(3), AJMER VS. SHRI ATISH KAPOOR, GROUP CENTRE, MAHARSHTRA 3 DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PEN DING 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 EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRA WN OR 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 DISPUT E IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE A PPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCUL AR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMEN T IS DISMISSED AS NOT PRESSED/WITHDRAWN. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 02/08/2018. SD/- SD/- FOT; IKWY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 02/08/2018 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- INCOME TAX OFFICER, AJMER 2. IZR;FKHZ@ THE RESPONDENT- M/S ATISH KAPOOR, GROUP CENTRE CRPF , PUNE (MAHARSHTRA) ITA NO. 728/JP/2018 ITO, WARD-1(3), AJMER VS. SHRI ATISH KAPOOR, GROUP CENTRE, MAHARSHTRA 4 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 728/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR