Income Tax officer, Ward-2(1), Ajmer V. Smt. Anjana Mittal, Ajmer

ITA 765/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3719 (ITAT-JAIPUR)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 31-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J. C. KULHARI J
• Keywords: Earning of tax free income; Wrong claim; Accommodation entries; Tax effect; Bogus
• Section: 69C; 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; 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. 765/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2015-16 THE ITO, WARD-2(1), AJMER. CUKE VS. SMT. ANJANA MITTAL GURU KRIPA, MEHBOOB KI KOTHI, ANASAGAR LINK ROAD, AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABXPM 3153 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE JKTLO DH VKSJ LS @ REVENUE BY : SHRI J. C. KULHARI (J.CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 27/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 30/07/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 27.03.2018 OF CIT(A), AJMER FOR THE ASSESSMENT YEAR 2015-16. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS AS UNDER:- IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CAS E THE LD. CIT(A), AJMER HAS ERRED IN: ITA NO. 765/JP/2018 ITO VS. SMT. ANJANA MITTAL 2 1. DELETING THE ADDITION OF RS. 41,56,396/- MADE U/ S 68 OF THE I.T. ACT, 1961 ON ACCOUNT OF BOGUS CLAIM OF LTCG U/S 10( 38) AND ADDITION OF RS. 83,128/- MADE U/S 69C OF THE I.T. A CT FOR COMMISSION PAYMENT, WITHOUT APPRECIATING THE FACTS OF THE CASE AND MODUS OPERANDI OF THE SCHEME WHICH CLEARLY PROV E THAT ALL THE TRANSACTIONS WERE SHAME TRANSACTIONS AND USED A S A COLORABLE DEVICE TO CREATE DOCUMENTARY EVIDENCES FOR CONVERTI NG UNACCOUNTED MONEY INTO TAX EXEMPT INCOME; 2. DELETING BOTH THE ADDITIONS WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE MADE BOGUS CLAIM OF LTCG BY AVAILING ACCOMMODATION ENTRIES IN LISTED COMPANIES INCORPORA TED WITH A VIEW TO PROVIDE ACCOMMODATION ENTRY. M/S PS IT INFR ASTRUCTURE & SERVICES LIMITED WAS ONE OF SUCH COMPANY WHOSE DIR ECTOR ALSO ADMITTED THAT THIS COMPANY IS A PAPER COMPANY; 3. THE APPELLANT CRAVES TO ADD, AMEND, ALTER, DELET ED OR MODIFY THE ABOVE GROUNDS OF APPEAL BEFORE OR AT THE TIME O F HEARING. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE-RESP ONDENT THIS APPEAL WAS CALLED FOR HEARING. IT IS APPARENT THAT THE LD. CIT(A) HAS DELETED ADDITION OF RS. 41,56,396/- MADE U/S 68 OF THE IT ACT AND FURTHER ADDITION OF RS. 83,128/- MADE U/S 69C OF TH E ACT FOR COMMISSION PAYMENT, THEREFORE, TAX EFFECT IS NOT EXCEEDING RS. 20 LACS WHEREAS AS PER THE CIRCULAR NO. 3/2018 DATED 11.07.2018 OF CBD T THE DEPARTMENT SHALL WITHDRAW ALL THE APPEALS HAVING TAX EFFECT NO T EXCEEDING RS. 20 LACS PENDING BEFORE THE TRIBUNAL. ITA NO. 765/JP/2018 ITO VS. SMT. ANJANA MITTAL 3 HENCE, WHEN THE TAX EFFECT IN THIS APPEAL OF THE RE VENUE IS NOT EXCEEDING THE LIMITS PROVIDED IN THE CIRCULAR NO. 3 /2018 THE SAME IS NOT MAINTAINABLE. ACCORDINGLY THE APPEAL OF THE REVENUE IS DISMISSED. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/07/2018. 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:- 30/07/2017. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD-2(1), AJMER. 2. IZR;FKHZ@ THE RESPONDENT- SMT. ANJANA MITTAL, AJMER. 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. 765/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR