The DCIT, Circle-9,, Surat v. M/s. Modern Embroidery, Surat

ITA 145/AHD/2011 | 2007-2008
Pronouncement Date: 06-10-2016 | Result: Dismissed

Appeal Details

RSA Number 14520514 RSA 2011
Assessee PAN AALFM4242K
Bench Ahmedabad
Appeal Number ITA 145/AHD/2011
Duration Of Justice 5 year(s) 8 month(s) 16 day(s)
Appellant The DCIT, Circle-9,, Surat
Respondent M/s. Modern Embroidery, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 06-10-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 06-10-2016
Date Of Final Hearing 05-10-2016
Next Hearing Date 05-10-2016
Assessment Year 2007-2008
Appeal Filed On 20-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH AHMEDABAD BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER ./ ITA NOS. 145 & 3262/AHD/2011 / ASSESSMENT YEAR : 2007-08 & 2008-09 DCIT CIRCLE-9 SURAT VS M/S. MODERN EMBROIDERY 355-A ISHWAR NIWAS A.K. ROAD SURAT PAN : AALFM 4242 K / (APPELLANT) / (RESPONDENT REVENUE BY : SMT. SONIA KUMAR SR. DR ASSESSEE BY : SHRI M.K. PATEL AR / DATE OF HEARING : 05/10/2016 / DATE OF PRONOUNCEMENT: 06/10/2016 / O R D E R THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEALS)- V SURAT DATED 28.10.2010 & 22.08.2010 FOR ASSESSMENT YEARS 2007-0 8 AND 2008-09 RESPECTIVELY. 2. FOR ASSESSMENT YEAR 2007-08 THE REVENUE HAS TAK EN FOLLOWING EFFECTIVE GROUNDS:- 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.8 2 1 479/- MADE BY THE AO ON ACCOUNT OF UNACCOUNTED INVESTMENT IGNORING TH E FACT THAT THE ADDITION OF UNACCOUNTED PEAK INVESTMENT WAS MADE ON THE BASIS OF WORKING SUBMITTED BY THE ASSESSEE FIRM ITSELF DURIN G THE ASSESSMENT PROCEEDINGS. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.4 3 5 685/- MADE BY THE AO ON ACCOUNT OF GROSS PROFIT ADOPTED @ 10% ON THE DIFFERENTIAL AMOUNT OF UNACCOUNTED PURCHASES MADE BY THE ASSESSE E WORKED OUT ON THE BASIS OF THE STATEMENT OF THE PARTNER OF THE FI RM BEFORE THE DRI. SMC-ITA NOS. 145 & 3262/AHD/2011 DCIT VS. MODERN EMBROIDERY AY : 2007-08 & 2008-09 2 3. THE EFFECTIVE GROUNDS RAISED BY THE REVENUE IN I TS APPEAL FOR ASSESSMENT YEAR 2008-09 READ AS UNDER:- 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.8 9 6 163/- MADE BY THE AO ON ACCOUNT OF UNACCOUNTED INVESTMENT IGNORING TH E FACT THAT THE ADDITION OF UNACCOUNTED PEAK INVESTMENT WAS MADE ON THE BASIS OF WORKING SUBMITTED BY THE ASSESSEE FIRM ITSELF DURIN G THE ASSESSMENT PROCEEDINGS. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.4 0 8 712/- MADE BY THE AO ON ACCOUNT OF GROSS PROFIT ADOPTED @ 10% ON THE DIFFERENTIAL AMOUNT OF UNACCOUNTED PURCHASES MADE BY THE ASSESSE E WORKED OUT ON THE BASIS OF THE STATEMENT OF THE PARTNER OF THE FI RM BEFORE THE DRI. 4. BEFORE ME AT THE OUTSET LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE PRESENT APPEALS OF THE REVENUE NEED TO BE DISMI SSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 O F 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAI RLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF AP PEALS RAISED BY THE REVENUE I PRIMA-FACIE FIND THAT THE TAX EFFECT IN BOTH THESE APPEALS IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTR AL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO.21 OF 20 15) NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT EXCLUDING INTEREST EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE I NSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED SMC-ITA NOS. 145 & 3262/AHD/2011 DCIT VS. MODERN EMBROIDERY AY : 2007-08 & 2008-09 3 THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS ETC. I PRIMA-FACIE FIND THAT THE PRESENT CASES DO NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT OF BOTH THESE APPEALS IS BELOW RS. 10 LAKHS. THEREFORE THESE APPEALS OF TH E REVENUE ARE NOT MAINTAINABLE AND HENCE DISMISSED. 6. IN THE RESULT BOTH APPEALS OF THE REVENUE ARE D ISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 6 TH OCTOBER 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 06/10/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. / DR ITAT AHMEDABAD 6. / GUARD FILE . / BY ORDER TRUE COPY / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD