M/s. K.S.Corporation, Ahmedabad V. The Dy.CIT, Central Circle-2(1), Ahmedabad

CO 188/AHD/2014

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 2736 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 20 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 20-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 15-03-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 30-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.1499/AHD/2014 ( / ASSESSMENT YEAR : 2011-12) DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-2(1) AHMEDABAD / VS. M/S. K.S. CORPORATION 702, SUMOUNT COMPELX OPP. ISCON TEMPLE S.G. ROAD AHMEDABAD # ./ ./ PAN/GIR NO. : AAIFK 0251 D ( #& / APPELLANT ) .. ( '#& / RESPONDENT ) AND CO NO.188/AHD/2014 AY 2011-12 (IN ITA NO.1499/AHD/2014 AY 2011-12) K. S.CORPORATION VS. THE DC IT, CIR-2(1) AHMEDABAD .. AHME DABAD ( CROSS OBJECTOR ) ( RESPONDENT ) REVENUE BY : MR.JAMES KURIAN, SR.DR APPELLANT BY : MR. DHIREN SHAH,AR () *+ / DATE OF HEARING 15/03/2017 ,-./ *+ / DATE OF PRONOUNCEMENT 20/03/2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-III, AHMEDABAD [CIT(A) IN ITA NO.1499/AHD /2014 AND CO NO.188/AHD/2014 (BY ASSESSEE) DY. CIT VS. M/S.K.S. CORPORATION ASST.YEAR 2011-12 - 2 - SHORT] DATED 27/02/2013 FOR THE ASSESSMENT YEAR (AY ) 2011-12 AND ASSESSEE IS IN CROSS OBJECTION THEREOF. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENAL TY U/S.271AAA AMOUNTING TO RS.5,00,000/-, DESPITE THE ASSESSEE HA VING FAILED TO SATISFY THE CONDITIONS MENTIONED IN CLAUSE(I) & (II ) OF SUB-SECTION (2) OF SECTION 271AAA AND IGNORING THE LIBERAL PENA L PROVISIONS OF SECTION 271AAA AS COMPARED TO THOSE OF SECTION 271( 1)(C). 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY A S ABOVE IN (1)WITHOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF ASSESSEES CASE WHICH REQUIRED THE ASSESSEE TO BE DIFFERENTIAT ED FROM AN HONEST AND LAW ABIDING TAX PAYER WHO VOLUNTARILY AND CORRE CTLY PAID TAX. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID CIRCULA R, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A ME ASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT OF RS.10 LAKHS. IN THE INSTANT CASE, THE TA X EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STATED TO BE LESS R S.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE ITA NO.1499/AHD /2014 AND CO NO.188/AHD/2014 (BY ASSESSEE) DY. CIT VS. M/S.K.S. CORPORATION ASST.YEAR 2011-12 - 3 - TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. AS A RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 6. CROSS OBJECTION NO.188/AHD/2014 FOR AY 2011-12 (IN ITA NO.1499/AHD/2014 AY 2011-12). THE FOLLOWING GROU ND HAS BEEN RAISED BY THE ASSESSEE IN ITS CROSS-OBJECTION:- 1. THE LD.CIT(A) AFTER GOING THROUGH THE DETAILS, SUB MISSIONS AND LEGAL SUBMISSIONS OF THE RESPONDENT, HAS RIGHTLY DE LETED THE PENALTY OF RS.5,00,000/- LEVIED U/S.271AAA OF THE I.T. ACT. 7. SINCE THE REVENUES APPEAL FOR AY 2011-12 IS DI SMISSED, THE AFORESAID CROSS OBJECTION FILED BY THE ASSESSEE IN SUPPORT OF THE ORDER OF CIT(A) IS ALSO RENDERED INFRUCTUOUS AND THE SAME I S DISMISSED AS SUCH. 8. IN THE COMBINED RESULT, REVENUES APPEAL AND CRO SS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 20 / 03 /2017 SD/- SD/- ( ) ( ) ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 20/ 03 /2017 3..(,.(../ T.C. NAIR, SR. PS ITA NO.1499/AHD /2014 AND CO NO.188/AHD/2014 (BY ASSESSEE) DY. CIT VS. M/S.K.S. CORPORATION ASST.YEAR 2011-12 - 4 - !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '#& / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-III, AHMEDABAD 5. 89:+(56 , 56 / , 4 / DR, ITAT, AHMEDABAD 6. :;) / GUARD FILE. / BY ORDER, '8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 15.3.17 (COVERED-CASE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 15.3.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.20.3.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 20.3.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER