Shri Mitesh Rasiklal Patel, Ahmedabad V. The Income Tax Officer, Ward-2(1), Baroda

CO 197/AHD/2013

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2306 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 26 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 11-04-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 11-04-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 15-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRAJNE PARAMITA
• Assessee Lawyers: ANIL R SHAH
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ITA NO. 1594/AHD/2013 AND CO NO.197/AHD/2013 / ASSESSMENT YEAR: 2009-10 INCOME TAX OFFICER, WARD 2 (1), BARODA VS SHRI MITESH RASIKLAL PATEL, PROP. NIDHI TRANSPORT, A/1, PUNAM BUNGLOW, B/H.MANAVDHARMA ASHRAM, MANJALPUR, BARODA PAN : ARLPP 7639 N ! / (APPELLANT) '# ! / (RESPONDENT & CROSS-OBJECTOR) REVENUE BY : MS. PRAJNE PARAMITA, SR. DR ASSESSEE(S) BY : SHRI ANIL R. SHAH, AR / DATE OF HEARING : 11/04/2016 / DATE OF PRONOUNCEMENT: 11/04/2016 / O R D E R PER KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE AND CROSS-OBJECTION THER EOF FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, BARODA, DATED 12.02.2013 F OR ASSESSMENT YEAR 2009-10. 2. THE REVENUE HAS RAISED FOLLOWING GROUND IN ITS A PPEAL:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(APPEALS) ERRED IN RESTRICTING THE ADDITION OF R S.26,89,320/- MADE ON ACCOUNT OF INFLATED EXPENSES ON TRUCK HIRING CHARGE S TO RS.5,00,000/- WITHOUT APPRECIATING THAT THE ADDITION WAS MADE AFT ER DEDUCTING PROPER ITA NO. 1594/AHD/2013 & CO 197/AHD/2013 ITO VS. SHRI MITESH RASIKLAL PATEL FOR AY 2009-10 2 ENQUIRIES AND THAT THE ASSESSEE FAILED TO PROVE OTH ERWISE WITH SUPPORTING DOCUMENTS/EVIDENCE. 2. BEFORE US, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT HE IS NOT PRESSING THE CROSS-OBJECTION; HENCE THE CROSS-OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS NOT PRESSED. 3. WITH REGARD TO REVENUES PRESENT APPEAL, THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE SAME NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.2 1 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE F AIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUND OF APPEAL RAISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF CIT( A) IN RESTRICTING THE ADDITION OF RS.26,89,320/-, MADE BY THE ASSESSING O FFICER ON ACCOUNT OF INFLATED EXPENSES ON TRUCK HIRING CHARGES, TO RS.5, 00,000/-; AND THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS PER THE AN NOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRC ULAR NO.21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIE F 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 T HAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN T HE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT THE TAX EFFECT IS LESS T HAN RS.10 LACS, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ITA NO. 1594/AHD/2013 & CO 197/AHD/2013 ITO VS. SHRI MITESH RASIKLAL PATEL FOR AY 2009-10 3 ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THIS APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS-OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 11 TH APRIL, 2016 AT AHMEDABAD. SD/- SD/- N.K. BILLAIYA (ACCOUNTANT MEMBER) (KUL BHARAT) JUDICIAL MEMBER AHMEDABAD; DATED 11/04/2016 BIJU T., PS &''()*)' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! ( ) / THE CIT(A) - VI, AHMEDABAD 5. $%&'' , , / DR, ITAT, AHMEDABAD 6. &,-. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD