ITO, Kishangarh V. NAVEEN AGARWAL, Ajmer

ITA 730/JPR/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3564 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 30-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANISH AGARWAL CA DHK
• 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 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. 730/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 INCOME TAX OFFICER, KISHANGARH. CUKE VS. NAVEEN AGARWAL, F-194, NAVEEN ENTERPRISES, IIIRD PHASE, RIICO INDUSTRIAL AREA, MADANGANJ, KISHANGARH, DISTT.- AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AASPA 0178 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI ANUP SINGH (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI MANISH AGARWAL (CA). LQUOKBZ DH RKJH[K @ DATE OF HEARING: 14/08/2018 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 20/08/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 21/08/2014 OF LD. CIT(A), AJMER FOR THE A.Y. 2011-12. THE REVE NUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) AJMER HAS ERRED IN:- 1. NOT APPRECIATING THE FACTS THAT SALE CONSIDERAT IONS RECEIVED WERE NOT RECORDED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE FO R THE YEAR UNDER CONSIDERATION, AS DISCLOSED BY SHRI P.C. VIJAYVARGI YA AND SHRI VASUDEO SOMANI IN THEIR STATEMENTS, RECORDED DURING THE SUR VEY OPERATIONS AND ASSESSMENT PROCEEDINGS ALSO. THEREFORE, G.P. RA TE DECLARED BY THE ASSESSEE DURING THE YEAR UNDER ASSESSMENT @ 28. 31% WAS RIGHTLY APPLIED BY THE A.O. ON UNDISCLOSED SALES OF RS. 1,4 6,35,635/-, COLLECTED THROUGH CARRIERS/COLLECTORS, RESULTING IN TO UNDISCLOSED 2 ITA NO. 730/JP/2014 ITO VS NAVEEN AGARWAL INCOME OF RS. 41,43,348/- AND HENCE, AN ADDITION OF RS. 41,43,348/- WAS RIGHTLY MADE ON ACCOUNT OF INCOME FROM UNDISCLO SED SALES. 2. THE APPELLANT CRAVES TO ADD, AMEND, ALTER, DELET E OR MODIFY THE ABOVE GROUND OF APPEAL BEFORE OR AT THE TIME OF HEA RING. 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS RAISED AN OBJECTION OF MAINTAINABILITY OF THE APPEAL OF THE REVENUE DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO. 3 OF 2018 DATED 11 TH JULY, 2018. THE LD. A/R SUBMITTED THAT IN THE FACTS OF T HE PRESENT CASE, TAX EFFECT IN REVENUES APPEAL IS STATED TO BE RS. 17,73,840/- ON THE ADDITION OF RS. 41,43,348/- WHICH IS BELOW THE PRESCRIBED LIMIT OF RS 20 LACS. 3. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EF FECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRES CRIBED 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 10.12.201 5. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFE CT 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) INSTRU CTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD N OT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EX CEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLIC ABLE FOR ALL PENDING APPEALS. 5. 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. 730/JP/2014 ITO VS NAVEEN AGARWAL EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 6. 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 APPEAL, THE APPEAL 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 DISMISS ED AS NOT PRESSED/WITHDRAWN. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/08/2018 . SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20 TH AUGUST, 2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, KISHANGARH. 2. IZR;FKHZ@ THE RESPONDENT- SHRI NAVEEN AGARWAL, MADANGANJ, KISHANGARH. 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. 730/JP/2014 ) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR