ACIT, CIRCLE- 36(1), NEW DELHI vs. BHARAT BHUSHAN SAWHNEY, DELHI

1. “The Ld. CIT(A) erred in law and in the facts in deleting the addition of Rs. 74,31,496/- merely on the ground that when separate addition is already made on unaccounted cash of Rs. 7,76,450/- and unaccounted stock of Rs. 72,23,450/- there is no locus standi to make separate GP addition without appreciating the fact that even such addition of these items in gross profit do not compensate for 300% abnormal wastage Page 1 of 5 ITA No.-3648/Del/2018 Shri Bharat Bhushan Sawhney shown in fruits and vegetables sold amounting to Rs. 6,82,22,260/- which is abnormal in comparison to growth of sale of only 20% and in comparison to previous year loss of only Rs. 2,16,15,370/- and also explanation given in this regard of heavy rainfall as the cause of such wastage is untenable as the assessee is not grower of fruits and vegetables but merely a vendor who secures such fruits and vegetables in cold storage and in this circumstances addition of GP was justified. Reliance is placed on the decision of the Hon’ble Supreme Court in the case of Brijbhushan Lal Praduman Kumar vs. CIT [1978] 115 ITR 524 and State of Kerala Vs. C. Velukutty [1996] 60 ITR 239. Further reliance is also placed on the decision of Delhi ITAT E-Bench in the case of ACIT Vs. Sunder Chemical and Agarbati Works Pvt. Ltd. [2015] 146 Taxman 11 (Delhi) and ITAT Amritsar Bench in the case of Jagan Nath Gurbachan Singh Vs. ITO [2001] 73 ITJ 878.

Notwithstanding, the tax effect is also above the monetary limit as prescribed by the CBDT circular No. 21/2015 dated 10.12.2015, therefore, further appeal is recommended in this case.” (B) At the outset, it was brought to our notice at the time of hearing, by learned Senior Departmental Representative (“Sr. DR”, for short) for Revenue; that tax effect in this appeal is below Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal (“ITAT”, for short) has been enhanced to Rs. 50,00,000/-. In a subsequent Page 2 of 5 ITA No.-3648/Del/2018 Shri Bharat Bhushan Sawhney clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. In view of the foregoing, it was submitted by Ld. Sr. DR for Revenue, that this appeal is not maintainable. He did not press the appeal. Therefore, this appeal is dismissed being not pressed; and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.