Samyak Buildcon, Ahmedabad V. The Asstt. Commissioner of Income Tax, Circle-5(3), Ahmedabad

CO 114/AHD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9407 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-09-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 25-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VINOD TANWNI
• Assessee Lawyers: GM THAKOR
• Keywords: Tax effect; Set aside

Judgement Text

ITA NO.1697/AHD/2016 & CO NO.114/AHD/2016 ASSESSMENT YEAR : 2011-12 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH D, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND PRAMOD KU MAR, VICE PRESIDENT] ITA NO. 1697/AHD/2016 ASSESSMENT YEAR: 2011-12 ASSTT. COMMISSIONER OF INCOME-TAX CIRCLE 5(3), AHMEDABAD .....APPELLANT VS SAMYAK BUILDCON ..........RESPONDENT 14-A, YOGESHWAR NAGAR SOCIETY, NEAR DHARNIDHAR TEMPLE, PALDI, AHMEDABAD 380 007 [PAN : ABMFS 1618 R] C.O. NO.114/AHD/2016 (ITA NO.1697/AHD/2016) ASSESSMENT YEAR: 2011-12 SAMYAK BUILDCON ..........APPELLANT 14-A, YOGESHWAR NAGAR SOCIETY, NEAR DHARNIDHAR TEMPLE, PALDI, AHMEDABAD 380 007 [PAN : ABMFS 1618 R] VS ASSTT. COMMISSIONER OF INCOME-TAX CIRCLE 5(3), AHMEDABAD .....RESPONDENT APPEARANCES BY VINOD TANWNI FOR THE REVENUE G.M.THAKOR, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : SEPTEMBER 26, 2019 DATE OF PRONOUNCEMENT : SEPTEMBER 27, 2019 O R D E R PER PRAMOD KUMAR, VP : ITA NO.1697/AHD/2016 & CO NO.114/AHD/2016 ASSESSMENT YEAR : 2011-12 PAGE 2 OF 3 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 02.03.2016, PASSED BY THE LEARNED CIT(A ), AHMEDABAD FOR THE ASSESSMENT YEAR 2011-12. THE ASSESSEE HAS ALSO FIL ED ITS CROSS OBJECTION. 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER IN IT S APPEAL ARE AS FOLLOWS: 1. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION OF RS.92,55,027/- MADE BY REJECTING THE BOOK RESULTS A ND ESTIMATING PROFIT @ 12% OF THE TOTAL TURNOVER INSPITE OF THE FACT THAT THE AO HAS POINTED OUT VARIOUS SPECIFIC INSTANCES SHOWING THAT THE SALES R EPORTED BY THE ASSESSEE AS WELL AS EXPENSES BOOKED ARE UNRELIABLE AND NOT CORR ECT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A)OUGHT TO HAVE UPHELD THE ADDITION MADE BY THE A.O. 3. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD . CIT(A) MAY BE SET ASIDE AND THE ORDER OF THE ASSESSING OFFICER BE RESTORED. 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, LEA RNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NE EDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 WHEREBY THE MONETARY LIMITS FOR FILING THE APPEAL B Y THE REVENUE BEFORE THE TRIBUNAL WAS ENHANCED FROM RS.20 LAKHS TO RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL O F THE REVENUE IS LIABLE TO BE DISMISSED AS NON-MAINTAINABLE AS HELD BY THIS TRIBU NAL IN THE CASE OF ITO VS. DINESH MADHAVLAL PATEL IN ITA NO.1398/AHD/2004 FOR AY 1998-99 VIDE A CONSOLIDATED ORDER DATED 14.08.2019. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRES CRIBED BY THE AFORESAID CBDT CIRCULAR. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLIC ABLE LEGAL POSITION. AS LEARNED COUNSEL RIGHTLY CONTENDS, THIS APPEAL OF THE REVENU E IS NO LONGER MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DAT ED 08.08.2019. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STANDS ENHANCED TO RS.50 LAKHS. THIS CONCESSION GR ANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTIVE IN EFFECT INAS MUCH AS IT APPLIES TO ALL PENDING APPEALS AS WELL. IN VIEW OF THE ABOVE POSITION, TH E APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE AND MUST BE DISMISSED AS SUCH. ITA NO.1697/AHD/2016 & CO NO.114/AHD/2016 ASSESSMENT YEAR : 2011-12 PAGE 3 OF 3 6. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFFECT OF MORE TH AN RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WITHIN THE EXEMPTION CLAUSE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERTY TO FILE MISCELLANEOUS AP PLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLICATION SHOULD BE FILED WITHIN TIME LIMIT PRESCRIBED IN THE ACT. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. 8. COMING TO THE CROSS OBJECTION FILED BY THE ASSES SEE, AS THE CROSS OBJECTION FILED BY THE ASSESSEE MERELY SUPPORTS THE ORDER OF THE LEARNED CIT(A), THE CROSS OBJECTION IS THUS DISMISSED AS INFRUCTUOUS. 9. IN THE RESULT, APPEAL FILED BY THE REVENUE AND C ROSS OBJECTION FILED BY THE ASSESSEE, BOTH ARE DISMISSED. PRONOUNCED IN THE OP EN COURT TODAY ON THE 27 TH SEPTEMBER, 2019. SD/- SD/- JUSTICE P P BHATT PRAMOD KUMAR (PRESIDENT) (VICE PRESIDENT) AHMEDABAD, DATED THE 27 TH DAY OF SEPTEMBER, 2019 COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ...27.08.2019.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 27.08.2019....... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 27.08.2019......... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: 27.08.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 27.08.2019.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......