ITO 25(2)(4), MUMBAI V. GUNJAN D. MODY, MUMBAI

ITA 8195/MUM/2010

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 2195 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 22-12-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 26-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SATYANDRA LAHOTI
• Keywords: Unexplained cash credit; Business income; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER / I .T A NO. 8195 /M UM /20 1 0 ( / ASSESSMENT YEAR : 200 6 - 0 7 THE ITO 25(2)(4), C - 11, PRATYAKSHAKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 4000 051 / VS. GUNJAN D. MODY, B/6/18, ABHISHEK CHSL, RATAN NAGAR, DAHISAR (E), MUMBAI - 400 0 68 ./ ./ PAN/GIR NO. AF F PM 5 590R ( / APPELLANT ) .. ( / RESPONDENT ) / A PPELLANT BY: SHRI MAURYA PRATAP / RESPONDENT BY: SHRI SATYANDRA LAHOTI / DATE OF HEARING : 2 2 .1 2 . 2015 / DATE OF PRONOUNCEMENT : 2 2 .1 2 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS IS AN APPEAL FILED B Y THE REVENUE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A) - 35 , MUMBAI DATED 15.9.2010 PERTAINING TO ASSESSMENT YEAR 2006 - 07 . 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN RESTRICTING THE ADDITION MADE BY THE AO ON ACCOUNT OF UNEXPLAINED CASH CREDIT TO RS. ITA. NO. 8195 /M/ 1 0 2 9,71,700/ - AS AGAINST RS. 12,50,700/ - MADE IN THE ASSESSMENT ORDER, WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS NOT BEEN ABLE TO PROVE SATISFACTORILY THE SOURCE OF CASH DEPOSITS IN HIS BANK ACCOUNT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, T HE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 13,85,962/ - ON ACCOUNT OF SUPPRESSION OF BUSINESS RECEIPTS BY APPLYING THE PRINCIPLE OF TELESCOPING WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS NOT BEEN ABLE TO PROVE THAT THESE RECEIPTS DO NOT BELONG TO HIM. 3. BEFORE GOING INTO THE MERITS OF THE CASE, LET US FIRST CONSIDER CBDTS LATEST INSTRUCTIONS VIDE CIRCULAR NO.21/2015 DATED 10/12/2015, THE RELEVANT PORTION OF WHICH READ AS UNDER: - CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007 - ITJ (PT) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10TH DECEMBER, 2015 SUBJECT: REVISION OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPRE ME COURT - MEASURES FOR REDUCING LITIGATION - REG REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/2014 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCOME - TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HAS BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPRE ME COURT KEEPING IN VIEW THE MONETARY LIMITS AND CONDITIONS SPECIFIED BELOW. ITA. NO. 8195 /M/ 1 0 3 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - S. NO APPEALS IN INCOME - TAX MATTERS MO NETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. IN THE CASE IN HAND, THE TOTAL DEMAND AS PER CIT(A) S ORDER IS LESS THAN THE AMOUNT OF RS. 10,00,000/ - , WHICH IS BELOW THE MONETARY LIMITS AS MENTIONED IN CBDT CIRCULAR DATED 10.12.2015 (SUPRA) . FOLLOWING THE SAME, THIS APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 2 2 ND DECEMBER , 2015 . SD/ - SD/ - ( SAKTIJIT DEY ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 2 2 ND DECEMBER , 2015 . . ./ RJ , SR. PS ITA. NO. 8195 /M/ 1 0 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI