INCOME TAX OFFICER vs. DOLSE DINESH MANOHAR, AHMEDNAGAR

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

“(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).”

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).

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.

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/-

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

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.