ACIT, ALWAR vs. DEEPAK JAIN, ALWAR

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ITA 422/JPR/2017Status: DisposedITAT Jaipur28 August 2018AY 2013-144 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the assessee's cross-objection as not pressed. The Revenue's appeal was dismissed as not maintainable due to the tax effect being below the prescribed limit as per CBDT Circular No. 3 of 2018.

What were the facts?

The Revenue appealed against an order of the CIT(A) which restricted an addition made by the Assessing Officer. The assessee also filed a cross-objection. During the hearing, the assessee did not press their grounds, and the Revenue's appeal was found to be below the monetary limit prescribed by CBDT circulars.

What were the issues?

Maintainability of the Revenue's appeal due to low tax effect and whether the assessee's grounds in the cross-objection should be pressed.

Which sections of the Income-tax Act were involved?

Section 68,Section 133A,Section 40A(2)(b),Section 268A(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 422/JP/2017

Hearing: 24/08/2018Pronounced: 28/08/2018

Heard together (2 matters)

ITA No. 422/JP/2017
C.O. No. 25/JP/2017

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 422/JP/2017 fu/kZkj.k o"kZ@Assessment Year : 2013-14 cuke The ACIT, Sh. Deepak Jain, Vs. Circle-2, Prop. M/s Anjali Rakhi Udhyog, Alwar Saxena Mohalla, Manni Ka Bar, Alwar LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AFAPJ 7429 P vihykFkhZ@Appellant izR;FkhZ@Respondent izR;k{ksi.k@C.O. No. 25/JP/2017 (Arising out of vk;dj vihy la-@ITA No. 422/JP/2017) fu/kZkj.k o"kZ@Assessment Year 2013-14 cuke Sh. Deepak Jain Prop. M/s Anjali The ACIT, Vs. Rakhi Udhyog, Saxena Mohalla, Circle-2, Manni Ka Bar, Alwar Alwar LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AFAPJ 7429 P izR;k{ksid@Objector izR;FkhZ@Respondent jktLo dh vksj ls@ Revenue by : Smt Roshanta Meena (JCIT) fu/kZkfjrh dh vksj ls@ Assessee by : Shri Narendra Jain lquokbZ dh rkjh[k@ Date of Hearing : 24/08/2018 mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 28/08/2018 vkns'k@ ORDER

PER: VIJAY PAL RAO, JM: The appeal filed by the Revenue and the cross objection filed by the assessee are directed against the order of the ld. CIT(A), Alwar dated 03/03/2017 for the A.Y. 2013-14. The grounds taken by the Revenue and the assessee are as under:-

ITA 422/JP/2017 & C.O. 25/JP/2017_ 2 ACIT, Alwar Vs Shri Deepak Jain, Alwar

Grounds of revenue’s appeal: “1. On the facts and in the circumstances of the case, ld. CIT(A) erred in restricting the addition of Rs. 57,46,980/- to Rs. 1,01,940/- which was made by the Assessing Officer u/s 68 of IT Act on account of purchase of stock which was found excess and unrecorded/unexplained, during the survey conducted u/s 133A of the IT Act, 1961.”

Grounds of assessee’s C.O.: “1. That ld. CIT (Appeals), Alwar erred in sustaining the disallowance of Rs. 43,588/- u/s 40A(2)(b) of IT Act even when the interest was paid at usual market rates and there was no excessive payment of interest.

2.

That the appellant prays to add or alter any ground of appeal at or before the time of hearing.”

2.

Firstly we take C.O. of the assessee. At the outset of hearing, the ld

AR of the assessee has stated that he doesn’t wish to press the grounds

so taken in the cross objection therefore, the same may be dismissed as

not pressed. On the other hand, the ld DR has not raised any objection if

the assessee does not want to press the grounds of C.O. Therefore, the

grounds taken by the assessee in the C.O. are dismissed being not

pressed.

3.

Now we take the revenue’s appeal. At the time of hearing, the ld.

AR of the assessee has raised an objection of maintainability of the appeal

of the Revenue due to the tax effect not exceeding Rs. 20 lacs as per the CBDT Circle No. 3 of 2018 dated 11th July, 2018. The ld. A/R submitted

that in the facts of the present case, tax effect in Revenue’s appeal is

stated to be below the prescribed limit of Rs 20 lacs.

ITA 422/JP/2017 & C.O. 25/JP/2017_ 3 ACIT, Alwar Vs Shri Deepak Jain, Alwar

4.

The ld. D/R has fairly submitted that the tax effect involved in the

Revenue’s appeal is less than 20 lacs which is prescribed threshold limit in terms of the CBDT Circular No. 3/2018 dated 11th July, 2018 issued in

supersession of its earlier Circular No. 21 of 2015 dated 10.12.2015.

5.

We have heard the rival contentions and perused the materials

available on record. It is observed that the demand/ tax effect in the Revenue’s appeal in question is below Rs. 20.00 lacs . Under the powers

vested by section. 268A(1) of the I T Act, CBDT has recently issued Circular No. 3/2018 dated 11th July, 2018 (F No. 279/Misc.

142/2007-ITJ(Pt) instructing the authorities below that

departmental appeal should not be filed before ITAT where the

demand/tax effect does not exceed Rs. 20 lacs. The circular is

specifically mentioned to be applicable for all pending appeals.

6.

Subject to some exceptions, it is further directed by CBDT that all

the departmental appeals pending before ITAT where the demand/tax

effect is not exceeding than 20 lacs should be either withdrawn or not

pressed by the departmental representatives.

7.

The present appeal is not covered by any exceptions mentioned in

the said CBDT circular. Since the tax demand in dispute in this

departmental appeal is below the limit set out by CBDT for the appeal, the

ITA 422/JP/2017 & C.O. 25/JP/2017_ 4 ACIT, Alwar Vs Shri Deepak Jain, Alwar

appeal of the assessee is not maintainable in view of CBDT Circular No. 3

of 2018 dated 11.07.2018. Accordingly the appeal of the Department is

dismissed as not pressed/withdrawn.

8.

In the result, both the appeal of the Revenue and the C.O. of the

assessee are dismissed.

Order pronounced in the open Court on 28/08/2018.

Sd/- Sd/- ¼foØe flag ;kno½ ¼fot; iky jko½ (Vikram Singh Yadav) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 28/08/2018 *Ranjan आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- The ACIT, Circle-2, Alwar 2. izR;FkhZ@The Respondent- Shri Deepak Jain, Jaipur 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File (ITA No. 422/JP/2017 & CO 25/JP/2017) vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत

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