INCOME-TAX OFFICER, WARD - 6(3), PUNE vs. M/S. SUKHANRAJ SHOBHACHAND SAKHARIYA, PUNE

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.

“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

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.

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.

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.

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.

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.

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