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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 739/JP/2018
PER VIJAY PAL RAO, JM :
This appeal by the revenue is directed against the order dated 23.03.2017 of
ld. CIT (A)-I, Jaipur for the assessment year 2009-10. The revenue has raised the
following grounds :-
“ On the facts and in the circumstances of the case and in law the ld. CIT (Appeals)-I, Jaipur has erred in :-
2 ITA No. 739/JP/2018 M/s. Vanijya Impex Pvt Ltd., Jaipur.
Whether on the facts and in the circumstances of the case and in law the ld. CIT (A) was justified in deleting the addition of Rs. 64,35,000/- made by the AO on account of unexplained credit of share premium?
Whether on the facts and in the circumstances of the case and in law the ld. CIT (A) was not justified in ignoring the fact that the assessee has declared share application money receipt in balance sheet for F.Y. 2008-09 relevant to A.Y. 2009-10?
Whether on the facts and in the circumstances of the case and in law the ld. CIT (A) was not justified to appreciate the facts that the assessee has credited the share application money during A.Y. 2009-10 (in balance sheet)?
Whether on the facts and in the circumstances of the case and in law the ld. CIT (A) was not justified in ignoring the facts that the assessee has not filed bank statement and confirmations of share application money/share premium received during assessment proceedings ?”
The dispute in this appeal of the revenue is regarding the deletion of addition
of Rs. 64,35,000/- made by the AO on account of unexplained credit of share
premium. Admittedly the tax effect in the revenue’s appeal is not exceeding the
limit of Rs. 20 lacs as per CBDT Circular No. 3 of 2018.
2.1. 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.
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,
3 ITA No. 739/JP/2018 M/s. Vanijya Impex Pvt Ltd., Jaipur.
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.
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.
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 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.
Cross Objection No. 21/JP/2018.
The assessee has filed the Cross Objection by raising the following grounds :-
“ 1. That under the facts and circumstances of the case the learned CIT (A) has erred in confirming the action of the Assessing Officer in passing the order u/s 148/144 of the Income Tax Act, 1961 which is ab-initio void, there being no service of notice u/s 148 of the Income Tax Act, 1961.
In the facts and circumstances of the case the learned CIT (A) has erred in confirming the action of the Assessing Officer in passing the assessment order passed by the Assessing Officer u/s 148/144 of the Income Tax Act, 1961 is bad in law as the same has been passed without serving notice u/s 143(2).
In the facts and circumstances of the case the assessment order passed by the Assessing Officer u/s 148/144 of the Income Tax Act, 1961 is bad in law as the same has been passed without furnishing reasons for issuing notice u/s 148 despite request by the assessee under letter dated 28.04.2016 & 18.11.2016.
4 ITA No. 739/JP/2018 M/s. Vanijya Impex Pvt Ltd., Jaipur.
In the facts and circumstances of the case the observations of the learned Assessing Officer regarding applicability of section 56(1) & 56(2) of the Income Tax Act, 1961 are irrelevant and non-existent. The provisions of section 56 are not applicable to the facts of the case even distantly.
The assessee craves your indulgence to add, amend or alter all or any grounds of appeal before or at the time of hearing.
At the time of hearing, the ld. Counsel for the assessee stated at bar that as the assessee does not want to press the cross objection on the ground that the appeal of the revenue being not maintainable on account of tax limit not exceeding Rs. 20 lacs as per the CBDT Circular No. 3/2018 dated 11th July, 2018 and is dismissed, therefore, the cross
objection of the assessee may be dismissed as not pressed. Accordingly, the cross objection of the assessee is dismissed being not pressed.
In the result, the appeal of the Revenue as well as Cross objection of the assessee are dismissed.
Order pronounced in the open court on 07/08/2018.
Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Jaipur Dated:- 07/08/2018. Das/
5 ITA No. 739/JP/2018 M/s. Vanijya Impex Pvt Ltd., Jaipur.
आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
The Appellant- The Income-tax Officer, Ward 2(2), Jaipur. 2. The Respondent –M/s. Vanijya Impex Pvt. Ltd., Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 739/JP/2018 & CO No. 21/JP/2018) vkns'kkuqlkj@ By order,
सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत
6 ITA No. 739/JP/2018 M/s. Vanijya Impex Pvt Ltd., Jaipur.