The ITO, Ward-4(2)(3), Ahmedabad V. Shri Mohan D. Bharwad, Ahmedabad

ITSSA 336/AHD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5047 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 14-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 05-09-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 29-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SHARMA
• Assessee Lawyers: P M MEHTA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER ./I.T.(SS)A. NO. 336/AHD/2016 ( / ASSESSMENT YEAR: 2011-12) ITO WARD-4(2)(3), AHMEDABAD / VS. SHRI MOHAN D. BHARWAD S/1, NEW UMANG SOCIETY, OPP. MADHAV BAUG, NIRNAYNAGAR, AHMEDABAD ./ ./PAN/GIR NO. : ADD PB0 907 D ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI O. P. SHARMA, CIT DR / RESPONDENT BY: SHRI P. M MEHTA, AR !' /DATE OF HEARING 05/09/2019 #$!' / DATE OF PRONOUNCEMENT 14/10/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2011-12, A RISE FROM ORDER OF THE CIT(A)-12, AHMEDABAD DATED 27.03.2015, IN PROCEEDING S UNDER SECTION 143(3) R.W.S. 153B(1)(B) OF THE INCOME TAX ACT, 1961; IN SH ORT THE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. WHETHER THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN GRANTING RELIEF BY ALLOWING 50% OF THE UNACCOUNTED CASH RECE IPTS ON ACCOUNT OF THE EXPENSES ON ESTIMATION BASIS FOR THE A.Y. 2011- 12. 2. WHETHER THE LD. CIT(A) HAS ERRED IN LAW AND ON T HE FACTS IN ESTIMATING THE EXPENSES @50% ON UNACCOUNTED CASH RE CEIPTS IN SPITE OF THE FACT THAT THE ASSESSING OFFICER HAS ALREADY GRA NTED THE SAME @12.5% ON THE BASIS OF DEVELOPMENT AGREEMENT. IT(SS)A NO. 336/AHD/2016( ITO VS. MOHAN D. BHARWAD) A.Y. 2011-12 2 3. WHETHER THE LD. CIT(A) HAS ERRED IN LAW AND ON F ACTS IN DIRECTING THE ASSESSING OFFICER TO GRANT CREDIT OF PROFIT OUT OF UNDISCLOSED CASH RECEIPT PERTAINS TO A.Y.S 2010-11 AND 2011-12 IN THE A.Y. 2012-13, IN SPITE OF THE FACT THAT THE UNACCOU NTED CASH RECEIPT FOR ALL THE ASSESSMENT YEARS WERE MUTUALLY EXCLUSIVE AN D THE PROFIT WAS DETERMINED BY THE LD. CIT(A) PURELY ON ESTIMATION B ASIS. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG 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.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 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. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. DURING THE COURSE OF APPELLATE PROCEEDING BEFORE US THE LD. COUNSEL HAS REPORTED THE TOTAL TAX EFFECT IN THIS CASE IS THIS AS HERE UNDER:- PARTICULARS AMOUNT (RS.) 1. ADDITION MADE ON ACCOUNT OF UNDISCLOSED RECEIPT AMOUNTING TO RS. 75,70,500/- [BEING 50% OF TOTAL CASH RECEIPT OF RS. 1,65,51,000/- I.E. 82,75,500/- LESS ALREADY OFFERED RS. 7,05,000/-] 23,39,285/- TOTAL DISPUTED ADDITION 23,39,285/- TAX ON TOTAL DISPUTED ADDITION (INCL. CESS @3%) 23,39,285/- IT(SS)A NO. 336/AHD/2016( ITO VS. MOHAN D. BHARWAD) A.Y. 2011-12 3 THE LD. DR COULD NOT CONTROVERT THE SAME. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 14/10/2019 TANMAY TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 17.09.2019 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 18.09.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. .09.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .09.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S .09.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 21.10.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER THIS ORDER PRONOUNCED IN OPEN COURT ON 14/ 10/2019