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Income Tax Appellate Tribunal, “A” BENCH, PUNE
Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM
आदेश / ORDER
PER D. KARUNAKARA RAO, AM :
These are the Cross appeals filed by the Revenue and the Assessee
involving A.Y. 2011-12. Revenue filed the main appeal ITA No.
1220/PUN/2016 and assessee filed the Cross Objection No.
50/PUN/2018. They are filed against the order of CIT(A)-2,
Aurangabad, Pune dated 17-03-2016.
We shall first take up the appeal of the Revenue.
ITA No.1220/PUN/2016 – By Revenue A.Y. 2011-12
Grounds raised by the Revenue are extracted here as under :
“1. Whether on the facts and circumstances of the case, the Ld.CIT(A), Aurangabad was correct in adopting the G.P. @42.97% of such unrecorded receipts to the tune of Rs.73,66,041/- found during the course of survey action. 2. On the facts and circumstances of the case, the order of the CIT(A)- 2, Aurangabad may be vacated and the order of the AO may be restored. 3. On the facts and circumstances the appellant craves leave to add, amend or alter any grounds of appeal.”
Briefly stated relevant facts of the case include that the assessee
is an individual and derives income from the proprietary concerns M/s.
Surya Lawns and M/s. Garden Court Bar and Restaurant. Assessee
filed the return of income declaring total income of Rs.21,66,193/-.
There was survey u/s.133A of the Act in the Ambarwadikar group of
cases. Various books of account and incriminating documents were
impounded in the case of the assessee. AO noticed certain discrepancies
3 ITA No.1220/PUN/2016 & Co No. 50/PUN/2018 M/s. Suryakant V. Ambarwadikar
in the actual receipts and the return of income filed in respect of M/s.
Surya Lawns and M/s. Garden Court Bar & Restaurant. At the end of
the assessment proceedings u/s.143(3) of the Act, the AO made addition
of difference in both the concerns mentioned above as undisclosed
income (Rs.73,66,041 + Rs.66,62,066). AO also made addition of
Rs.8,68,239/- on account of electricity charges. In the First Appellate
proceedings, the CIT(A) gave part relief on the addition of Rs.73,66,041/-
on account of recorded receipts of M/s. Garden Court Bar & Restaurant.
However, he confirmed the other two additions made by the AO.
Aggrieved with the part relief given by the CIT(A), the Revenue is in
appeal before us with the grounds extracted above.
At the outset, Ld. AR for the assessee submitted that the appeal
filed by the Department is liable to be dismissed on account of low tax
effect. The Ld. AR pointed that as per CBDT Circular No.3/2018 dated
11th July, 2018, the monetary limit for filing of appeal by the Department
before the Tribunal is Rs.20 Lakhs, therefore, the appeal filed by the
Department is not maintainable.
On the other hand, the Ld. DR for the Revenue defended the order
of the AO and prayed for reversing the findings of the CIT(A) in the
appeals. However, the Ld. DR fairly admitted that the tax effect in the
present appeal filed by the Department is less than Rs.20 Lakhs.
Both sides are heard. On going through the facts of the case and
the orders of the Revenue, we find the total tax effect involved in the
present appeal works out to Rs.11,98,362/-, which is below 20 lakhs.
The CBDT circular No.3/2018 dated 11th July, 2018 raised the monetary
4 ITA No.1220/PUN/2016 & Co No. 50/PUN/2018 M/s. Suryakant V. Ambarwadikar
limit of tax effect for filing of appeal by the Department before the
Tribunal to Rs.20 Lakhs. The circular applies to the pending appeals of
the Department before the Tribunal too. Thus, in view of the CBDT
circular, we are of the opinion that the present appeal of the Revenue is
liable to be dismissed on account of low tax effect without going into the
merits of the case.
In the result, the appeal of the Revenue is dismissed.
We shall now take up the cross objection filed by the assessee.
CO No. 50/PUN/2018 A.Y. 2011-12
Since the appeal of the Revenue is dismissed as not-maintainable
on account of low tax effect, the cross objection filed by the assessee
becomes infructuous. As such, the cross objection of the assessee is
dismissed as academic or infructuous.
In the result, the cross objection of the assessee is dismissed.
To sum up, the appeal of the Revenue as well as the cross
objection of the assessee are dismissed.
Order pronounced on 08th day of October, 2018.
Sd/- Sd/-
(िवकास अव�थी /VIKAS AWASTHY) (डी. क�णाकरा राव/D. KARUNAKARA RAO) �ाियक सद�/JUDICIAL MEMBER लेखा सद�/ACCOUNTANT MEMBER पुणे / Pune; िदनांक / Dated : 08th October, 2018. Satish
5 ITA No.1220/PUN/2016 & Co No. 50/PUN/2018 M/s. Suryakant V. Ambarwadikar
आदेश की 'ितिलिप अ)ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��थ� / The Respondent. 2. 3. The CIT(Appeals)-2, Aurangabad 4. The Pr.CIT-2, Aurangabad िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “ए” ब"च, 5. पुणे / DR, ITAT, “A” Bench, Pune. गाड% फ़ाइल / Guard File. 6.
आदेशानुसार / BY ORDER,
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.