M/S. Kranti Realtors Pvt. Ltd.,, vs Department Of Income Tax

Asstt. Commissioner of Income Tax, Central Circle 2(2), Pune. .... Appellant

Vs.

M/s Kranti Realtors Pvt. Ltd., 202, 1206/2A, Sankalp, Near Santosh Bakery, Shivaji Nagar, Pune - 411 005. PAN : AACCK9742Q .... Respondent

Department by : Shri Hemant Kumar Leuva Assessee by : Shri Dharmesh Shah Date of hearing : 16-02-2015 Date of pronouncement : 16-02-2015

ORDER

PER G. S. PANNU, AM

The captioned appeal by the Revenue is directed against an order of

the Commissioner of Income Tax (Appeals)-Central, Pune dated 23.09.2013

which, in turn, has arisen from an order dated 30.12.2011 passed by the

Assessing Officer u/s 143(3) of the Income-tax Act, 1961 (in short "the Act"),

pertaining to the assessment year 2010-11.

2. In this appeal, the solitary dispute relates to the action of the CIT(A) in

deleting the addition of Rs.11,81,595/- on account of commission paid to Mr.

L.V. Vanthoor.

3. In brief, the relevant facts are that assessee is an individual engaged in

the business of developers and promoters for real estate property. For the

year under consideration, it filed a return of income declaring total income at

'Nil', which was subject to a scrutiny assessment. In the course of

assessment proceedings, Assessing Officer added a sum of Rs.11,81,595/- on 2 ITA No.2191/PN/2013

account of commission paid by the assessee to Mr. L.C. Vanthoor. In this

regard, assessee explained that he had never paid commission to Mr. L.C.

Vanthoor. The Assessing Officer has not satisfied with the explanation of the

assessee and added a sum of Rs.11,81,595/- to the returned income of the

assessee. The CIT(A) has not agreed with the stand of the Assessing Officer

and deleted the addition. Not being satisfied with the decision of the CIT(A),

Revenue is in appeal before us.

4. At the time of hearing, a preliminarily objection was raised by the Ld.

Representative for the respondent-assessee to the effect that the captioned

appeal is not maintainable in view of Instruction No.5 of 2014 dated

10.07.2014 issued by the CBDT. The plea raised before us is that the tax

effect in respect of the issue raised in the present appeal is below the limit

prescribed by CBDT in its Instruction No.5 of 2014 (supra) for filing of appeals

before the Tribunal.

5. In response, the Ld. Departmental Representative has not contested

the factual matrix that the tax effect involved in present appeal is below the

monetary limits prescribed by the CBDT in its Instruction No.5 of 2014 (supra)

regarding filing of appeals before the Tribunal.

6. In view of the aforesaid factual position, it is evident that the captioned

appeal is not maintainable and is hit by the monetary limits prescribed by the

CBDT vide Instruction No.5 of 2014 (supra) for filing of appeals before the

Tribunal. Notably, as per the CBDT Instruction No.5 of 2014 (supra) appeal

before the Tribunal shall not be filed in cases where the tax effect in respect of

the issues raised is below Rupees four lacs. As a result of the aforesaid

discussion, in our view, the present appeal of the Revenue is not maintainable 3 ITA No.2191/PN/2013

in the light of the CBDT Instruction No.5 of 2014 (supra). Accordingly, the

captioned appeal is dismissed as not maintainable.

7. Resultantly, the appeal of the Revenue is dismissed, as announced at

the conclusion of hearing before both the parties on 16th February, 2015.

Sd/- Sd/- (R.S. PADVEKAR) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER

Pune, Dated: 16 th February, 2015. Sujeet

Copy of the order is forwarded to: - 1) The Assessee; 2) The Department; 3) The CIT(A)-Central, Pune; 4) The CIT-Central, Pune; 5) The DR "B" Bench, I.T.A.T., Pune; 6) Guard File.

By Order //True Copy// Assistant Registrar I.T.A.T., Pune