Income Tax Officer, Ward-2, Kishangarh V. Smt. Parul Jain, Madanganj-Kishangarh

ITA 743/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4585 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 29-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J C KULHARI
• Keywords: Earning of tax free income; Wrong claim; Accommodation entries; Tax effect; Sham transactions
• Section: 69C

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. 743/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2014-15 INCOME- TAX OFFICER WARD-2, KISHANGARH CUKE VS. SMT. PARUL JAIN, RAJVILLA, OPP. RAVINDRA RANGMANCH, JAIN COLONY, MADANGANJ, KISHANGARH LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABUPJ0144K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI J. C. KULHARI (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 06/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 07/08/2018 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 28.03.2018 FOR ASSESSMENT YEAR 201 4-15 WHEREIN THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL: - ON FACTS AND IN LAW, THE LD CIT(A), AJMER ERRED IN :- 1. DELETING THE ADDITION OF RS. 45,15,529/- MADE U/S 6 8 OF THE I.T. ACT, 1961 ON ACCOUNT OF BOGUS CLAIM OF LTCG U/S 10( 38) AND ADDITION OF RS. 90,311/- MADE U/S 69C OF THE I.T. A CT FOR ITA NO. 743/JP/2018 ITO, WARD-2, KISHANGARH VS. SMT. PARUL JAIN, RAJVIL LA, KISHANGARH 2 COMMISSION PAYMENT, WITHOUT APPRECIATING THE FACTS OF THE CASE AND MODUS OPERANDI OF THE SCHEME WHICH CLEARLY PROVE THAT ALL THE TRANSACTIONS WERE SHAM TRANSACTIONS AND USED AS A COLORABLE DEVICE TO CREATE DOCUMENTARY EVIDENCES FO R CONVERTING UNACCOUNTED MONEY INTO TAX EXEMPT INCOME . 2. DELETING BOTH THE ADDITIONS WITHOUT APPRECIATING TH E FACT THAT THE ASSESSEE MADE BOGUS CLAIM OF LTCG BY AVAILING ACCOMMODATION ENTRIES IN LISTED COMPANIES CONTROLLE D BY SHRI PRAVEEN KUMAR AGARWAL WHO ACCEPTED ON OATH THAT HE WAS INDULGED IN PROVIDING BOGUS LTCG/STCL ENTRIES AND M /S PS IT INFRASTRUCTURE & SERVICES LIMITED WAS ONE OF THE BE NEFICIARIES. THE DIRECTOR OF M/S PS IT INFRASTRUCTURE & SERVICES LIMITED ALSO ADMITTED THAT THIS COMPANY IS A PAPER COMPANY. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. THE LD . D/R HAS SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEA L COMES TO RS 17,68,380/- LESS THAN RS 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 LD DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN THE R EVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF TH E IT ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/201 8 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRU CTING THE ITA NO. 743/JP/2018 ITO, WARD-2, KISHANGARH VS. SMT. PARUL JAIN, RAJVIL LA, KISHANGARH 3 AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD N OT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DO ES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY ME NTIONED 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 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 REVENUE I S DISMISSED AS NOT PRESSED/WITHDRAWN. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/08/2018. 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:- 07/08/2018 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: ITA NO. 743/JP/2018 ITO, WARD-2, KISHANGARH VS. SMT. PARUL JAIN, RAJVIL LA, KISHANGARH 4 1. VIHYKFKHZ@ THE APPELLANT- INCOME TAX OFFICER, KISHANGARH 2. IZR;FKHZ@ THE RESPONDENT- SMT. PARUL JAIN, 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. 743/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR