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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI D. KARUNAKARA RAO, AM
आदेश / ORDER
PER D. KARUNAKARA RAO, AM
This appeal filed by Revenue is directed against the order of Commissioner of Income Tax (Appeals)-2, Pune dated 23.09.2016 for assessment year 2012-13.
2 ITA No.2728/PUN/2016 A.Y.2012-13
The Revenue has raised following grounds in appeal:
“(i) On the facts and in the circumstances of the case, the CIT(A) erred in holding that proper course of action for the A0 should have been to frame the assessment u/s.153C of the I T Act and not u/s.147 even when the documents seized in the search did not belong to the assessee. (ii) On the facts and in the circumstances of the case, the CIT(A) erred in not appreciating that the provisions of section 153C (as applicable to A.Y. 2012-13) can only be invoked if the documents, money, bullion seized belonged to the assessee. (iii) On the facts and in the circumstances of the case, the CIT(A) erred in holding that the documents seized in the search belonged to the assessee when the actual physical ownership of the documents was with the buyer of the land. (iv) The CIT(A) has erred in invalidating the reassessment proceedings even when all the ingredients prescribed in section 147 were present. (v) On the facts and in the circumstances of the case, the CIT(A) should have upheld the reassessment relying on the decision of ITAT, Pune in the case of Sushilkumar S Nadkarni Pune Vs ITO (ITA No.826/PN/2010).”
Briefly stated relevant facts includes that the assessee filed return of
income declaring total income at Rs.1,79,360/- in response to the notice
issued u/s.148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the
Act.). During assessment proceedings, the Assessing Officer assessed total
income of assessee at Rs.37,79,360/-. The Assessing Officer made a major
addition of Rs.36,00,000/- as unaccounted income on account of sale
consideration. Aggrieved with the assessment order dated 04.03.2016, the
assessee filed appeal before CIT(A). The CIT(A) granted relief to the assessee
and deleted the addition made by Assessing Officer. Now, the Revenue is in
appeal against the order of CIT(A).
At the outset, Ld. Counsel for the assessee submitted that 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. 21/2015 dated 10.12.2015, the
monetary limit for filing of appeal by the Department before the Tribunal is
3 ITA No.2728/PUN/2016 A.Y.2012-13
Rs.10 Lakhs, therefore, the appeals filed by the Department are not
maintainable.
On the other hand, the Ld. DR for the Revenue defended the 5.
assessment orders and prayed for reversing the findings of the CIT(A).
However, the ld. DR fairly admitted that tax effect in the present appeal is
less than Rs.10 Lakhs.
Both sides heard. A perusal of the impugned orders shows that
addition made in the assessment year under consideration is on account of
income from sale consideration and interest income. The tax on disputed
addition of Rs. 36,00,000/-, works out as follows:
Particulars Amount ( Rs.)
Tax upto Rs. 2,50,000/- NIL
Tax @ 10% on Rs.2,50,000/- - 5,00,000/- 25,000/-
Tax @ 20% on Rs.5,00,000-10,00,000/- 1,00,000/-
Tax @ 30% on account of exceeding 7,80,000/- Rs.8,00,000/- i.e. Rs.26,00,000/- Total 9,05,000/-
Undisputedly, the tax effect in present appeal is less than Rs. 10
Lakhs. The CBDT circular No.21/2015 dated 10.12.2015 has raised the
monetary limit of tax effect for filing of appeal by the Department before the
Tribunal to Rs.10 Lakhs. The circular applies to the appeals to be filed by the
Department in future, as well as the appeals pending before the Tribunal.
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.
4 ITA No.2728/PUN/2016 A.Y.2012-13
In the result, the appeal of the Revenue is dismissed.
Order pronounced on 15th day of May, 2018.
Sd/- (डी.क�णाकरा राव/D. Karunakara Rao) लेखा सद�य / ACCOUNTANT MEMBER
पुणे / Pune; �दनांक / Dated : 15th May, 2018. SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(Appeals)-2, Pune. 4. The Pr. CIT-1, Pune. 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “एक-सद�य” ब�च, पुणे / DR, ITAT, “SMC” Bench, Pune. गाड� फ़ाइल / Guard File. 6.
// True Copy // आदेशानुसार / BY ORDER,
�नजी स�चव /Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.