The ITO, Ward-9(4), Surat V. Shri Viren Ganeshbhai Munjani, Surat

ITA 785/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9327 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 09-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGID
• Keywords: Rejection of books of accounts; Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.785/AHD/2012 ( / ASSESSMENT YEAR : 2008-09) THE ITO WARD-9(4) SURAT / VS. SHRI VIREN GANESHBHAI MUNJANI BLOCK NO.30/B, SADHNA SOCIETY VARACHHA ROAD SURAT-395 006 ./ ./ PAN/GIR NO. : ALYPM 9479 Q ( ' / APPELLANT ) .. ( #' / RESPONDENT ) ' $ / APPELLANT BY : SHRI J.P. JANGID, SR.DR #' % $ / RESPONDENT BY : -NONE- (WRITTEN SUBMISSION) &'( % ) / DATE OF HEARING 10/02/2016 *+, % ) / DATE OF PRONOUNCEMENT 16/02/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-V, SURAT [CIT(A) IN SHORT] DATED 19/12/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2008-09. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - ITA NO.785 /AHD /2012 ITO VS. SHRI VIREN GANESHBHAI MUNJANI ASST.YEAR 2008-09 - 2 - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 26,95,911/- ON ACCOUNT OF DISALLOWANCES OF EXPENSES AND PURCHASES DUE TO REJECTION OF BOOKS OF ACCOUNTS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A), OUGHT TO HAVE UPHELD THE ORDER OF THE A. O. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD.C IT(A) BE SET-ASIDE AND THAT OF THE AO BE RESTORED. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSE SSEE SUBMITTED THROUGH WRITTEN SUBMISSION DATED 06/02/2016 THAT AS PER CEN TRAL BOARD OF DIRECT TAXES CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/20 07-ITJ (PT) DATED 10TH DECEMBER 2015, THE REVISED LIMIT FOR PREFERRIN G REVENUE'S APPEALS IS RS. 10 LACS. HE SUBMITTED THAT THE TAX EFFECT IN T HE PRESENT REVENUE'S APPEAL IS RS.8,11,200/- WHICH IS BELOW THE PRESCRIB ED LIMIT OF RS.10 LACS. HE, THEREFORE, PLEADED THAT IN VIEW OF THE CBDT CIR CULAR, THE REVENUE'S APPEAL MAY BE DISMISSED AS THE TAX EFFECT BEING BEL OW THE PRESCRIBED LIMIT. 3. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR THE AS SESSEE. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BE EN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INC OME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD H AS PROVIDED ITA NO.785 /AHD /2012 ITO VS. SHRI VIREN GANESHBHAI MUNJANI ASST.YEAR 2008-09 - 3 - EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOE S NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS. 10 LA KHS. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS NOT MAINTAINABLE A ND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON TUESDAY, THE 16 TH DAY OF FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( PRAMOD KUMAR ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 16/ 02 /2016 0)..& , '.&../ T.C. NAIR, SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 123 4 / CONCERNED CIT 4. 4 ( ) / THE CIT(A)-V, SURAT 5. 5'6 &23 , ) 23 , , 1 / DR, ITAT, AHMEDABAD 6. 689 :( / GUARD FILE. / BY ORDER, #5 //TRUE COPY// / ( DY./ASSTT.REGISTRAR)