ACIT, Ajmer V. RAHUL GOYAL, Kishangarh

ITA 904/JPR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5371 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 07-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P R MEENA JCIT DHK
• Assessee Lawyers: N KATARIA
• Keywords: Tax effect

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 VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO.904 /JP/15 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 THE ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AJMER CUKE VS. SHRI RAHUL GOYAL S/O SHRI OM PRAKASH GOYAL, OPP.GOPAL BUILDING, AJMER ROAD, MADANGANJ, KISHANGARH LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ARPPG 7178 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI N. KATARIA (C.A.) JKTLO DH VKSJ LS@ REVENUE BY :S HRI P.R. MEENA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 11.03.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 16/03/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-2, UDAIPUR DATED 5.10.2015 WHEREIN THE REVENUE HAS TA KEN FOLLOWING GROUNDS OF APPEAL: (1) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT(A) WAS RIGHT IN MODIFYING THE G.P. ADDITION, MADE BY T HE AO ON TRANSACTION FACILITATED BY THE ASSESSEE, BY HOLDING THAT ONLY N ET COMMISSION INCOME OF RS.225/- PER LAC RS.1 COULD BE TAXED ON THE BAN K DEPOSITS TAKEN BY THE AO AS TURNOVER WITHOUT GIVING ANY SPECIFIC FINDINGS ON THE OWNER OF THE DEPOSITS MADE IN THE BANK ACCOUNTS. (2) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE CIT(A) WAS RIGHT NOT APPRECIATING THE FACTS THAT THE ASSE SSEE HAS BEEN UNABLE ITA NO. 904/JP/15 THE ACIT, CENTRAL CIRCLE, AJMER VS. SHRI RAHUL GOYA L, KISHANGARH 2 TO PRODUCE THE DEPOSITORS AS WELL AS BENEFICIARIE S AND IN ABSENCE OF BASIC DETAILS, IT WAS NOT PROVED BY THE ASSESSEE TH AT HE WAS PROVIDING FACILITY OF BRINGING UNRECORDED SALES PROCEEDS OF ANY SELLERS THROUGH HIS BANK ACCOUNTS AND THEREFORE IN THIS SITUATION, THER E WAS NO OTHER OPTION EXCEPT TO HOLD THAT THE DEPOSITS IN BANK ACCOUNTS A RE NOTHING BUT ASSESSEES OWN TRADING RECEIPTS/SALE PROCEEDS AND WITHDRAWALS WERE FOR THE CORRESPONDING PURCHAS4S AND EXPENSES. (3) (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE THE CIT(A) WAS RIGHT NOT APPRECIATING THE FACTS THAT IN THIS CASE IT WAS ESTABLISHED BY THE AO THAT ASSESSEE WAS ENGAGED IN THE BUSIN ESS OF MARBLE TRADING AND THE DEPOSITS IN BANK ACCOUNTS REPRESENTS THE SA LE PROCEEDS. (II) THE AO HAS RIGHTLY APPLIED THE RATE ON GROSS PROFIT OF TRADING BUSINESS OF MARBLE CONSIDERING THE AMOUNT OF DEPOSITS IN HIS BANK ACCOUNTS AS TRADING RECEIPTS BEING UNRECORDED SALES IN HER HAND S. 2. AT THE OUTSET, LD. AR SUBMITTED THAT THE SUBJECT APPEAL OF REVENUE IS NOT MAINTAINABLE IN LIGHT OF CIRCULAR NO. 21 DAT ED 10.12.2015 ISSUED BY THE CBDT. 3. WE HAVE HEARD LD AR AND THE DR. FROM PERUSAL OF MATERIAL AVAILABLE ON RECORD IN RESPECT OF THE ABOVE APPEAL, IT IS OB SERVED THAT THE DEMAND/ TAX EFFECT IN THIS REVENUE APPEAL IS NOT EXCEEDING RS . 10 LACS. UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I.T. ACT, CBDT HAS RE CENTLY ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015(F.NO.279/MISC. 142/2 007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFEC T DOES NOT EXCEED RS.10 LACS. THE CIRCULAR SPECIFICALLY MENTI ONS THAT IT WILL BE APPLICABLE TO ALL PENDING APPEALS ALSO. ITA NO. 904/JP/15 THE ACIT, CENTRAL CIRCLE, AJMER VS. SHRI RAHUL GOYA L, KISHANGARH 3 3.1. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIR ECTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING RS. 10 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES AT THE TIME OF HEARING . 3.2 THE REVENUE APPEAL IS NOT COVERED BY ANY EXCE PTIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN THE DEPARTMENTAL APPEAL DOES NOT EXCEED THE LIMIT OF RS. 10 LACS AS SET OUT BY CBDT, SUCH APPEALS ARE NOT MAINTAINABLE. ACCORDINGLY, THE LD. DR AGREE TH AT THIS APPEAL OF THE DEPARTMENT MAY BE TREATED AS NOT PRESSED/WITHDRAWN AND DISMISSED IN VIEW OF THE CBDT CIRCULAR. IN THE RESULT, THE APPEAL FILED BY THE R EVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 /0 3/2016. SD/- SD/- ( R.P. TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 16 / 03 /2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CENTRAL CIRCLE, AJMER 2. THE RESPONDENT- SHRI RAHUL GOYAL, KISHANGARH 3. THE CIT(A)-2, UDAIPUR 4. THE CIT -AJMER 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO 904 /JP/15) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR ITA NO. 904/JP/15 THE ACIT, CENTRAL CIRCLE, AJMER VS. SHRI RAHUL GOYA L, KISHANGARH 4