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Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: SHRI D. KARUNAKARA RAO, AM
PER D. KARUNAKARA RAO, AM :
This is the appeal filed by Revenue against the order of CIT(A)-4, Pune dated 17-04-2017 for the Assessment Year 2014-15.
Grounds raised by the Revenue are extracted below :
“1. On the facts and in the circumstances of the case and in law, the Learned Commissioner of Income-tax (Appeals) has erred in accepting the sharp fall in Gross Profit by 10% and Net Profit by 12% keeping aside the position in earlier year, i.e. 2013-14. 2. For this and such other reasons as may be urged at the time of hearing, the order of the CIT(A) may be vacated and that of the Assessing Officer be restored. 3. The appellant craves leave to add, amend, alter or delete any of the above grounds of appeal during the course of appellate proceedings before the Hon’ble Tribunal.”
2 ITA No.2044/PUN/2017 M/s. Sukhanraj S. Sakhariya
Briefly stated relevant facts includes that the assessee is a firm
engaged in Gold Jewellery, Silver and Diamond trading. There was
survey action u/s.133A of the Act. Survey resulted in declaration of
gold jewellery worth Rs.1 crore. In the assessment, the AO noticed
discrepancies in stock. At the end of assessment, the AO made addition
of Rs.40,56,829 on account of Gross profit on estimation basis.
Contents of Para No.4 of the assessment order are relevant.
In the First Appellate proceedings, the CIT(A) deleted the addition
made by the AO. Contents of Para No.5.3.2 are relevant. Aggrieved
with the order of CIT(A), the Revenue filed the present appeal before the
Tribunal.
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
assessment order and prayed for reversing the findings of the CIT(A).
However, the Ld. DR fairly admitted that the tax effect in the present
appeal is less than Rs.20 Lakhs.
Both sides are heard. On going through the facts of the case and
the orders of the Revenue, I find the total tax effect involved in the
present appeal works out to below 20 lakhs. The CBDT circular
No.3/2018 dated 11th July, 2018 raised the monetary limit of tax effect
for filing of appeal by the Department before the Tribunal to Rs.20
3 ITA No.2044/PUN/2017 M/s. Sukhanraj S. Sakhariya
Lakhs. The circular applies to the pending appeals of the Department
before the Tribunal too. Thus, in view of the CBDT circular, I am 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.
Order pronounced on this 03rd day of October, 2018.
Sd/- (D.KARUNAKARA RAO) लेखा सद� / ACCOUNTANT MEMBER पुणे / Pune; �दनांक Dated : 03rd October, 2018. Satish
आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to : अ�ेिषत
अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / The CIT(A)-4, Pune 3. आयकर आयु� / The Pr.CIT-3, Pune 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6.
आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER,स आदेशानुसार
स�यािपत �ित //True Copy// Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune