Darsath Investment Pvt. Ltd., Ahmedabad V. The Income Tax Officer, Ward-1(4)(4), Ahmedabad

CO 65/AHD/2016

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 5819 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 20 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 14-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 25-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Keywords: Deemed dividend; Tax effect
• Section: 2(22)(e)

Judgement Text

ITA NO. 850/AHD/2016 & CO NO. 65/AHD/2016 ITO VS. DASHRATH INVESTMENT PVT LTD & VICE VERSA ASSESSMENT YEAR : 2012-13 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH C, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND PRAMOD KU MAR, VICE PRESIDENT] ITA NO. 850/AHD/2016 ASSESSMENT YEAR: 2012-13 INCOME TAX OFFICER .....APPELLANT WARD 1(1)(4), AHMEDABAD VS DASHRATH INVESTMENT PVT LTD ..........RESP ONDENT POPULAR PARK, NR. ASHWAMEGH BUNGALOWS, B/H. PARUL FLATS, 132 FEET RING ROAD, AHMEDABAD [PAN : AAACD 6559 J] C.O. NO.65/AHD/2016 (ITA NO.850/AHD/2016) ASSESSMENT YEAR: 2012-13 DASHRATH INVESTMENT PVT LTD ..........APPE LLANT POPULAR PARK, NR. ASHWAMEGH BUNGALOWS, B/H. PARUL FLATS, 132 FEET RING ROAD, AHMEDABAD [PAN : AAACD 6559 J] VS INCOME TAX OFFICER .....RESPONDENT WARD 1(1)(4), AHMEDABAD APPEARANCES BY LP JAIN FOR THE REVENUE NUPUR SHAH, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : AUGUST 05, 2019 DATE OF PRONOUNCEMENT : OCTOBER 14, 2019 O R D E R PER PRAMOD KUMAR, VP : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 25 TH JANUARY 2016, PASSED BY THE LEARNED CIT(A)-1, AHME DABAD FOR THE ASSESSMENT YEAR 2012-13. THE ASSESSEE HAS ALSO FIL ED ITS CROSS OBJECTION. ITA NO. 850/AHD/2016 & CO NO. 65/AHD/2016 ITO VS. DASHRATH INVESTMENT PVT LTD & VICE VERSA ASSESSMENT YEAR : 2012-13 PAGE 2 OF 3 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE A S FOLLOWS: 1. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW, IN DELETING THE ADDITION OF RS.5,99,150/- MADE BY THE AO IN VIEW OF EXPLANATION -3 TO SECTION 41(1) OF THE I.T. ACT. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS, IN DELETING THE ADDITION IN RESPECT OF DEEMED DIVIDEND U/S 2(22)(E) OF RS.60,18 ,615/- 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. 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. ITA NO. 850/AHD/2016 & CO NO. 65/AHD/2016 ITO VS. DASHRATH INVESTMENT PVT LTD & VICE VERSA ASSESSMENT YEAR : 2012-13 PAGE 3 OF 3 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 14 TH OCTOBER, 2019. SD/- SD/ JUSTICE P P BHATT PRAMOD KUMAR (PRESIDENT) (VICE PRESIDENT) AHMEDABAD, DATED THE 14 TH DAY OF OCTOBER, 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: ...LOW TAX EFFECT27.09.2019 .. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 27.09.2019....... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 14.10.2019......... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: 14.10.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : 14.10.2019 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: ......