Deputy Commissioner of Income Tax , Circle-3, Jaipur V. M/s. Chokhi Dhani Resorts Private Limited, Jaipur

ITA 762/JPR/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7852 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 31-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S NEHRA
• Assessee Lawyers: R K BATRA
• 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 NOS. 762 & 763/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2013-14 & 14-15. THE DCIT, CIRCLER-3, JAIPUR. CUKE VS. M/S. CHOKHI DHANI RESORTS PVT. LTD., CHOKI DHANI TOWER, S-8, SHYAM NAGAR, AJMER ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABCP 1152 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI A.S. NEHRA (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI R.K. BATRA (C.A.) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 09/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 14/08/2018 VKNS'K@ ORDER PER VIJAY PAL RAO, J.M. THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST TWO SEPARATE ORDERS OF LD. CIT (A)-I, JAIPUR BOTH DATED 27.03.2018 FOR THE ASSESSMENT YEARS 2013-14 AND 14-15 RESPECTIVELY. THE GROUNDS BY THE REVENUE IN I TA NO. 762/JP/2018 ARE AS UNDER :- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) WAS RIGHT IN DELETING THE DISALLOWANCE OF C REDIT CARD CHARGES PAID TO BANK U/S 40(A)(IA) OF THE ACT AMOUN TING TO RS. 5,04,193/-. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) WAS RIGHT IN DELETING THE DISALLOWANCE U/S 36(1)(VA) R.W.S. 2(24)(X) OF PF &ESI DUES OF EMPLOYEES AMOUNT ING TO RS. 19,22,350/-. 2 ITA NOS. 762 & 763/JP/2018 M/S. CHOKHI DHANI RESORTS PVT. LTD., JAIPUR. 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) WAS RIGHT IN DELETING THE LUMP SUM DISALLOW ANCE OUT OF ADVT. BUSINESS PROMOTION, TRAVELLING, CONVEYANCE EX PENDITURES AMOUNTING TO RS. 7,00,000/-. THE APPELLANT CRAVE, LEAVE OR RESERVES THE RIGHT TO AMEND MODIFY, ALTER ADD OR FOREGO ANY GROUND (S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. GROUNDS RAISED IN ITA NO. 763/JP/2018 : 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) WAS RIGHT IN DELETING THE DISALLOWANCE U/S 36(1)(VA) R.W.S. 2(24)(X) OF PF & ESI DUES OF EMPLOYEES AMOUN TING TO RS. 24,47,717/-. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) WAS RIGHT IN DELETING THE ADDITION OF RS. 6 4,000/- ON ACCOUNT OF ALLOTMENT OF SHARES AT LOWER RATE BY RS/ 8/- PER SHARE. 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) WAS RIGHT IN DELETING THE LUMP SUM DISALLOW ANCE OUT OF ADVT. BUSINESS PROMOTION, TRAVELLING, CONVEYANCE EX PENDITURES AMOUNTING TO RS. 9,50,000/-. THE APPELLANT CRAVE, LEAVE OR RESERVES THE RIGHT TO AMEND MODIFY, ALTER ADD OR FOREGO ANY GROUND (S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. THE DISPUTES IN THE APPEAL OF THE REVENUE FOR TH E A.Y. 2013-14 ARE REGARDING DISALLOWANCE/DELETION OF ADDITIONS OF RS. 5,04,193/ - MADE BY THE AO ON ACCOUNT OF CREDIT CARD CHARGES PAID TO BANK, RS. 19,22,350/- M ADE BY THE AO ON ACCOUNT OF PF & ESI DUES OF THE EMPLOYEES AND RS. 7,00,000/- ON A CCOUNT ADVERTISEMENT, BUSINESS PROMOTION, TRAVELLING, CONVEYANCE EXPENSES ETC. AN D FOR THE A.Y. 2014-15 THE DISPUTES ARE REGARDING DISALLOWANCE/DELETION OF ADD ITIONS OF RS. 24,47,717/- ON ACCOUNT OF PF & ESI DUES OF EMPLOYEES, RS. 64,000/- ON ACCOUNT OF ALLOTMENT OF 3 ITA NOS. 762 & 763/JP/2018 M/S. CHOKHI DHANI RESORTS PVT. LTD., JAIPUR. SHARES AT LOWER RATE AND RS. 9,50,000/- ON ACCOUNT OF ADVERTISEMENT, BUSINESS PROMOTION, TRAVELLING, CONVEYANCE EXPENSES ETC. A DMITTEDLY THE TAX EFFECT IN EACH OF THE REVENUES APPEALS IS NOT EXCEEDING THE LIMIT OF RS. 20 LACS AS PER CBDT CIRCULAR NO. 3 OF 2018. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN EACH OF 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 10.12.2015. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN THE REVENUES APPEALS 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) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED 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 WITHDRAWN O R 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 DISPUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEA L OF THE ASSESSEE IS NOT 4 ITA NOS. 762 & 763/JP/2018 M/S. CHOKHI DHANI RESORTS PVT. LTD., JAIPUR. MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISSED AS NOT PR ESSED/WITHDRAWN. 6. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14/08/ 2018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 14/08/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE DCIT,CIRCLE-3, JAIPUR. 2. THE RESPONDENT M/S. CHOKHI DHANI RESORTS PVT. LTD., JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 762 & 763/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR