Shree Vasupujya Estate Developers ... vs Assessee

Revenue by: Shri Dinesh Singh, Sr. D.R. Assessee by: None I.T.A No.2734/Ahd/2011 & CO No 01/Ahd/2012 A.Y. 2006-07 Page No 2 ITO vs. Shree Vasupujay Estate Developers Pvt. Ltd Date of hearing : 27-03-2015 Date of pronouncement : 21-04-2015

आदे श/ORDER

PER : RAJPAL YADAV, JUDICIAL MEMBER:-

The revenue is in appeal before us against the order of Ld. CIT(A)- XIV dated 12-082011 passed for assessment year 2006-07. Assessee has also filed a cross objection bearing No. 01/Ahd/2012.

2. The grievance of Revenue is that Ld. CIT(A) has erred in directing the AO to compute the income of Assessee by estimating gross profit @ 8% instead of 16% estimated by AO

3. With the assistance of Ld. DR, we have gone through the record. The assessee has shown total receipt of Rs. 1,07,92,000/-. The AO has rejected the book result of the assessee and estimated the profit @ 16% of the total receipt. In this way, he made an addition of Rs. 17,26,720/-.

4. On appeal, Ld. First Appellate Authority has confirmed the addition to the extent of 50% of the total addition made by AO, meaning thereby Ld. First Appellate Authority has deleted the addition of Rs. 8,63,360/-. The CBDT has issued instructions bearing no. 03 dated 09-02-2011 vide which the Board has directed its officials that order of the CIT(A) should not be challenged before the Tribunal, if the tax effect by virtue of any deletion by the Ld. First Appellate Authority is less than Rs. 3 lacs. The Board has provided certain exceptions at serial No. 8 of the instructions, wherein it has been provided that irrespective of the tax effect, the order of the CIT(A) would be challenged before the Tribunal, if any instructions or provision of the Act has been struck down or there is an audit objection I.T.A No.2734/Ahd/2011 & CO No 01/Ahd/2012 A.Y. 2006-07 Page No 3 ITO vs. Shree Vasupujay Estate Developers Pvt. Ltd etc. On the perusal of the record, it reveals that tax effect on deletion at Rs. 8,63,360/- is less than 3 lacs. Ld. DR did not point out that the conditions enumerated at serial No. 8 of the instructions are applicable on this appeal. Therefore, this appeal is being filed in violation of the instructions of the Board as such it is not maintainable. The appeal is dismissed in limine without admission, being not maintainable.

5. Since the appeal is dismissed as not admitted, the assessee cannot file cross objection, because no notice on a valid appeal is deemed to be served upon the assessee. If assessee had any grievance then he would have filed the appeal against the order of Ld. CIT(A). The cross objection in this situation is not maintainable and dismissed. Accordingly, the appeal and the cross objection are dismissed.

Order pronounced in the open court on 21.04.2015

Sd/- Sd/-

(G.D. AGRAWAL) (RAJPAL YADAV) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad: Dated 21/04/2015 ak

आदे श क ूितिल प अमे षत / Copy of Order Forwarded to:-

1. Assessee

2. Revenue

3. Concerned CIT

4. CIT (A)

5. DR, ITAT, Ahmedabad

6. Guard file.

By order/आदे श से,

उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद