THE ITO, WARD-2, GANDHIDHAM vs. SHRI SAVLA DILIP SURESHBHAI, ANJAR

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ITA 146/RJT/2007Status: DisposedITAT Rajkot13 August 2018AY 2003-043 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable because the tax effect was below the threshold prescribed by CBDT Circular No. 3 of 2018. The assessee's cross-objection was dismissed as not pressed.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order which deleted/restricted additions made by the Assessing Officer. The assessee filed a cross-objection. The appeal was primarily dismissed due to low tax effect.

What were the issues?

Maintainability of the appeal due to low tax effect as per CBDT circular. The CIT(A)'s decision on additions related to unexplained gift, loan, and suppressed GP were not adjudicated on merits.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI P. K. KEDIA & SHRI MAHAVIR PRASAD

For Appellant: Shri Praveen Verma, Sr. D.R

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [Conducted through E-Court at Ahmedabad]

(BEFORE SHRI P. K. KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER)

ITA. No: 146/Rjt/2007 & C.O. No. 04/Rjt/2007 (Assessment Year: 2003-04)

Income Tax Officer, Ward- V/S Shri Savla Dilip 2, Gandhidham Sureshbhai, Pro: M/s Meet Traders, 303-304, Shri Satyam Co.op. Society, Near Oslo Circle, Plot No. 3, Sector No. 1, Gandhidham-Kutch Shri Savla Dilip V/S Sureshbhai, Pro: M/s Meet Income Tax Officer, Ward- Traders, 303-304, Shri 2, Gandhidham Satyam Co.op. Society, Near Oslo Circle, Plot No. 3, Sector No. 1, Gandhidham-Kutch (Appellant) (Respondent)

PAN: AINPS0156J

Appellant by : Shri Praveen Verma, Sr. D.R. Respondent by : Shri Kalpesh Doshi, A.R.

(आदेश)/ORDER

Date of hearing : 19 -07-2018 Date of Pronouncement : 13 -08-2018

ITA No. 146/RJT/2007 & 2 C.O. No.04/Rjt/2007 . A.Y. 2003-04 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. IT(SS)A No. 146/Rjt/2007 & C.O. No. 04/Rjt/2007 are appeal by the revenue and cross objection by the assessee directed against the order of the Ld. CIT(A)-II, Rajkot dated 29.11.2006 pertaining to A.Y. 2003-04, on the following grounds :

1.

The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 10,00,000/- made by A.O. on account of unexplained gift.

2.

The Ld. CIT(A) has erred in law and on facts in restricting the addition to Rs. 242000/-(out of Rs. 14,00,000/-) made by AO on account of unexplained loan u/s. 68 of the I.T. Act.

3.

The Ld. CIT(A) has erred in law and on facts in restricting the addition to Rs. 85312/-(out of Rs. 11,85,312/-) made by AO on account of suppression of G.P.

4.

On the facts of the case, the ld. CIT(A) ought to have upheld the order of the A.O.

5.

It is therefore, prayed that the order of the CIT-(A) may kindly be set-aside and that of Assessing Officer be restored.

2.

At the outset, the ld. Counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No. 3 of 2018 dated 11.07.2018. Ld. Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

3.

We have heard both the parties and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No. 03/2015 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 11th July 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20

ITA No. 146/RJT/2007 & 3 C.O. No.04/Rjt/2007 . A.Y. 2003-04 lacs. The Board has provided exceptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall within the exception clause and the tax is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

4.

In the result, the appeal filed by the Revenue is dismissed.

5.

So far C.O. No. 04/Rjt/2007 is concerned, ld. A.R. does not want to press the same, therefore the same is dismissed as not pressed.

Order pronounced in Open Court on 13 - 08- 2018 Sd/- Sd/- (P. K. KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 13/08/2018 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad

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