The ITO, Ward-5(3)(1), Ahmedabad V. Shri Kshitinbhai Pravinbhai Sheth, Ahmedabad

ITA 839/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2420 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 06-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAUMYA SHETH
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 839/AHD/2017 WITH CROSS OBJECTION NO. 79/AHD/2017 ( ASSESSMENT YEAR : 2009-10) I.T.O., WARD 5(3)(1), ROOM NO.128, 1 ST FLOOR, NARAYAN CHAMBERS, ASHRAM ROAD, AHMEDABAD-380009 / VS. SHRI KSHITINBHAI PRAVINBHAI SHETH, 3, DHARMISTHA NAGAR SOCIETY, NEW SHARDA MANDIR ROAD, PALDI, AHMEDABAD - 380007 ./ ./ PAN/GIR NO. : ACEPS6989E ( APPELLANT ) .. ( RESPONDENT & CROSS OBJECTOR ) REVENUE BY : SHRI MUDIT NAGPAL, SR. D.R. ASSESSEE BY : SAUMYA SHETH, A.R. DATE OF HEARING 29/08/2018 / DATE OF PRONOUNCEMENT 04/09/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-5, AHMEDABA D (CIT(A) IN SHORT), DATED 03.01.2017 ARISING IN THE ASSESSMENT ORDER DATED 18.02.2016 PASSED BY THE ASSESSING OFFICER (AO) U/S . 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961; (THE ACT) CONCERNI NG ASSESSMENT ITA NO. 839/AHD/17 WITH CO NO. 79/AHD/2017 ITO VS. SHRI KSHITINBHAI P. SHETH] A.Y. 2009-10 - 2 - YEAR 2009-10. THE ASSESSEE HAS ALSO FILED CROSS-OBJ ECTION IN THE REVENUES APPEAL SUPPORTING THE ACTION OF THE CIT(A ). 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE AS U NDER: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN RESTRICTING THE ADDITION OF RS.49,47,495/-, MADE ON ACCOUNT OF DISA LLOWANCE OF PURCHASES TREATING IT AS BOGUS/NOT GENUINE, TO RS.2 ,47,375, WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS FAILED TO PROVE THE GENUINENESS OF PURCHASES FROM SHRI BHANWA RLAL JAIN GROUP. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISIN G THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED IS SUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. H OWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPE AL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN A NY MANNER. ITA NO. 839/AHD/17 WITH CO NO. 79/AHD/2017 ITO VS. SHRI KSHITINBHAI P. SHETH] A.Y. 2009-10 - 3 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 6. THE ASSESSEE HAS FILED CROSS OBJECTION IN THE RE VENUES APPEAL CHALLENGING THE JURISDICTION OF THE AO TO REOPEN TH E ASSESSMENT UNDER S. 147 OF THE ACT. HOWEVER, THE LD.AR FOR THE ASSE SSEE AT THE TIME OF HEARING MADE A STATEMENT AT THE BAR THAT THE CROSS OBJECTION RAISED ON BEHALF OF THE ASSESSEE IS NOT PRESSED. THE CROSS O BJECTION IS ACCORDINGLY DISMISSED AS NOT PRESSED. 7. IN THE COMBINED RESULT, THE APPEAL OF THE REVENU E IS DISMISSED, WHEREAS ASSESSEES CROSS OBJECTION IS DISMISSED AS NOT PRESSED. SD/- SD/- (RAJPAL YADAV) (PRADI P KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 04/09/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- '. / REVENUE 2. / ASSESSEE $. %&' ( / CONCERNED CIT 4. (- / CIT (A) +. ,-. /00&'1 &'1 23% / DR, ITAT, AHMEDABAD 4. .56 7 / GUARD FILE. BY ORDER / 1 /2 &'1 23% THIS ORDER PRONOUNCED IN OPEN COURT ON 04/09/201 8