M/s Krishna Developers, JUNAGADH V. The Asstt. Commr. Income Tax, Circle-1, JUNAGADH

CO 7/RJT/2015

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 2848 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 2 month(s) 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 24-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 19-01-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HARGOVIND SINGH
• Assessee Lawyers: M J RANAPURA
• Keywords: Tax effect

Judgement Text

: : IN THE INCOME TAX APPELLATE TRIBUN AL: RAJKOT BENCH: RAJKOT BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI K. NAR ASIMHA CHA RY , JUDICIAL MEMBER ./ ITA NO . 576 /R JT /201 4 WITH CO.7/RJT/2015 / ASSESSMENT YEAR : 2010 - 11 ACIT , CIRCLE - 2 , JAMNAGAR VS M/S.KRISHNA DEVELOPERS, BUSINESS CENTRE, 1 ST FLOOR, BUS STATION ROAD, LAL BAHADUR SOCIETY, JUNAGADH PAN : A A EFK0952H / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI HARGOVIND SINGH , D.R ASSESSEE BY : SHRI M.J. RANAPURA , C . A / DATE OF HEARING : 22 / 03/2017 / DATE OF PRONOUNCEMENT: 24 /03/2017 / O R D E R PER SHRI S.V. MEHROTRA , ACCOUNTANT MEMBER : THE DEPARTMENT HAS FILED THE ABOVE APPEAL AND THE ASSESSEE HAS FILED THE CROSS OBJECTION AGAINST THE ORDER OF LD.CIT(A) - I V , RAJKOT DATED 0 9 / 07 / 201 4 F OR ASSESSMENT YEAR 2010 - 11 . 2. THE DEPARTMENT HAS, INTER - ALIA, TAKEN FOLLOWING GROUND OF APPEAL. ON FA CTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN UPHOLDING ADDITION OF RS.5 LACS ONLY AND DELETING THE ADDITION OF RS.28,48,430/ - 3. THE ASSESSEE HAS FILED CROSS OBJECTION AGAINST THE ADDITION OF RS.5 LACS UPHE LD BY LD.CIT(A). 4. AT THE OUTSET, IT WAS POINTED OUT BY THE LD. AR THAT THE APPEAL IS HIT BY THE CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015 AS THE QUANTUM INVOLVED IN ITA NO.576/RJT/2014 WITH CO.7/RJT/2015 A.Y.2010 - 11 - 2 - THIS CASE IS RS. 28,48,430 / - AND THEREFORE, TAX EFFECT ON THE DISPUTED ADDITION BEFORE US IS LESS THAN RS. 10 LACS. 5 . AFTER PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE ADDITIONS DISPUTED BEFORE US IS BELOW THE TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 FOR PREFERRING APPEALS BEFORE TR IBUNAL BY THE REVENUE. ON PERUSAL OF THE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 AND THE MATERIALS AVAILABLE ON RECORD, LD. DR COULD NOT POINT OUT WHETHER THIS CASE FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN THE CIRCULAR DESPITE SPECIFIC OPPORTUNITY WAS GIVEN, DOES NOT FALL UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR, AS THIS IS COVERED. WE ALSO FIND THAT THE CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. WE FIND TH AT THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. THIS POSITION HAS BEEN CONFIRMED BY THE HON BLE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC). HENCE, WE HOLD THAT THE APPEAL OF THE REVENUE D ESERVES TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.21 / 2015 DATED 10.12.2015. ACCORDINGLY, THIS BEING A LOW TAX EFFECT CASE, WE DISMISS THIS APPEAL OF REVENUE IN LIMINE , AS UNADMITTED, WITHOUT GOING INTO THE MERITS OF THE CASE. 5. AT THE TIME OF HEARING THE LD.COUNSEL DID NOT PRESS CROSS OBJECTION , A CCORDINGLY , THE SAME IS DISMISSED AS NOT PRESSED. 6. IN THE RESULT, THE REVENUE S APPEAL IS DISMISSED AND THE ASSESSEE S CROSS OBJECTION IS DISMISSED AS NOT PRESSED. ITA NO.576/RJT/2014 WITH CO.7/RJT/2015 A.Y.2010 - 11 - 3 - ORDER PRONOUNCED I N THE COURT ON 24 TH MARCH, 2017. SD/ - SD/ - ( K. NAR ASIMHA CHA RY ) JUDICIAL MEMBER ( S.V. MEHROTRA ) ACCOUNTANT MEMBER RAJKOT, DATED 2 4 / 03 /20 17 * MANISH / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT - 2 . / RESPONDENT - 3 . / CONCERNED CIT /DIT 4 . - / CIT (A) - IV, RAJKOT 5 . , , / DR, ITAT, RAJKOT 6 . / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) / ITAT, RAJKOT