I.T.O., Ward-1(3), Aligarh V. Sh. Kamal Kant Varshney Prop., Aligarh

ITA 89/AGR/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0675 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 1 month(s) 12 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 24-06-2013
• Assessment Year: misc
• Appeal Filed On: 04-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Assessee Lawyers: VITHAL DAS
• Keywords: Gift; Audit objection; Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 89/AGRA/2013 ASSTT. YEAR : 2007-08 INCOME-TAX OFFICER, VS. SHRI KAMAL KANT VARSHNEY, WARD 1(3), ALIGARH. PROP. M/S. PRAKHAR INDUSTRIE S, D-86, INDUSTRIAL ESTATE, ALIGARH. (PAN: AAQPV 4809 E) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.K. MISHRA, JR. D.R. RESPONDENT BY : SHRI VITHAL DAS, ADVOCATE DATE OF HEARING : 24.06.2013 DATE OF PRONOUNCEMENT OF ORDER : 24.06.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) MUZAFFARNAGAR DATED 12.12.2012 FOR THE ASSES SMENT YEAR 2007- 08. 2. IN THE DEPARTMENTAL APPEAL, THE REVENUE HAS CHAL LENGED THE DELETION OF ADDITION OF RS.2,81,080/- ON ACCOUNT OF DISALLOWANCE OUT OF ITA NO. 89/AGRA/2013 2 COMMISSION AND DELETION OF ADDITION OF RS.7,17,541/ - ON ACCOUNT OF DISALLOWANCE OF EXPENSES CLAIMED ON GIFT OF TAXI ON ALL THE GROUNDS OF APPEAL. THE LD. CIT(A) AFTER ELABORATELY DISCUSSING BOTH THE ISSUES GAVE A FINDING OF FACT IN FAVOUR OF THE ASSESSEE FOR DELET ING BOTH THE ADDITIONS. THE TOTAL OF THE ABOVE ADDITIONS DELETED BY THE LD. CIT(A) COMES TO RS.9,98,621/- UPON WHICH THE TAX EFFECT IN DEPARTME NTAL APPEAL COMES TO RS.2,99,586/-. THE DEPARTMENTAL APPEAL IS, THEREFOR E, HAVING TAX EFFECT LESS THAN RS.3,00,000/-. THE DEPARTMENTAL APPEAL IS FILED ON 04.04.2013. ACCORDING TO THE CBDT CIRCULAR NO. 03/2011 DATED 09 .02.2011, IF THE TAX EFFECT IN THE DEPARTMENTAL APPEAL WOULD NOT EXCEED RS.3,00,000/- IN CASE THE APPEAL HAS TO BE FILED BEFORE THE TRIBUNAL, THE DEPARTMENTAL APPEAL IS DIRECTED NOT TO BE FILED. SINCE IN THE DEPARTMENTAL APPEAL, ADMITTEDLY, THE TAX EFFECT IS BELOW RS.3,00,000/-, THEREFORE, THE D EPARTMENTAL APPEAL WOULD NOT BE MAINTAINABLE. NO QUESTION OF LAW IS IN VOLVED IN THE PRESENT APPEAL. NO AUDIT OBJECTION HAS BEEN POINTED OUT. NO BOARDS CIRCULAR OR NOTIFICATION ETC. HAVE BEEN CHALLENGED IN THE PRESE NT APPEAL. ADDITIONS HAVE BEEN DELETED PURELY ON MERIT GIVING FINDING OF FACT IN FAVOUR OF THE ASSESSEE. THE DEPARTMENTAL APPEAL IS, THEREFORE, NO T MAINTAINABLE AND IS ITA NO. 89/AGRA/2013 3 FILED IN CONTRAVENTION OF CBDT CIRCULAR. THE DEPART MENTAL APPEAL IS, THEREFORE, LIABLE TO BE DISMISSED. 3. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY