INCOME TAX OFFICER, WARD-4(2)(1), PRATYAKSH KAR BHAWAN V. KANTILAL BECHARDAS PATEL THROUGH LEGAL HEIR SHRI DINESHKUMA KANTILAL PATEL THROUGH , SCIENCE CITY ROAD, SOLA

ITA 577/AHD/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, which quashed the notice under Section 148 and subsequent proceedings against the legal heir of the deceased assessee, Kantilal Bechardas Patel, for the Assessment Year 2014-15. The Revenue challenged the CIT(A)'s decision on grounds that the legal heir had not informed the department about the assessee's death before the issuance of the notice under Section 148. However, the Tribunal found the appeal to be non-maintainable due to the low tax effect, as per the recent CBDT Circular.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472248 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-10-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 30-03-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MALARKODI R.
• Keywords: Tax effect
• Section: 143(3); 250; 54B

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद Ɋायपीठ ‘B’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE MRS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER ITA No. 577/Ahd/2024 िनधाᭅरण वषᭅ/Assessment Year: 2014-15 Income Tax Officer, Ward 4(2)(1), Ahmedabad Vs. Kantilal Bechardas Patel, Through Legal Heir Shri Dineshkumar Kantilal Patel 44, Super Bungalows, Opp. Swaminarayan Mandir, Science City Road, Sola, Ahmedabad Gujarat – 380060 PAN : AGAPP 9373 P अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : None Revenue by : Smt. Malarkodi R., Sr DR सुनवाई कᳱ तारीख/Date of Hearing : 14.10.2024 घोषणा कᳱ तारीख /Date of Pronouncement: 15.10.2024 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: Present appeal has been filed by the Revenue against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi [hereinafter referred to as \"CIT(A)\" for short] dated 31.01.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for the Assessment Year (AY) 2014-15. 2. The grounds of appeal raised by the Revenue read as under:- “(a) The Ld. CIT(A) has erred in law and on facts in quashed the notice u/s 148 and subsequent proceedings without appreciating the fact that the Legal heir of assessee has not intimated about the death of assessee to the department before issue of Notice u/s. 148 of the Act 2 ITA No. 577/Ahd/2024 ITO Vs. Kantilal Bechardas Patel, thru LH Shri Dineshkumar Kantilal Patel AY : 2014-15 and the AO has continued the further proceedings and passed order u/s 143(3) in the name in the name of legal heir after getting such information. (b) The Ld. CIT(A) has erred in law and on facts in quashing the notice u/s 148 and subsequent proceedings without adjudicating the case on merits. (c) The Ld. CIT(A) has erred in law and on facts in allowing the exemption u/s 54B of Rs 94,21,958/- claimed by the assessee.” 2. At the time of hearing before us, none appeared on behalf of the assessee; however, since the issue in question is covered by Central Board of Direct Taxes (CBDT) Circular No. 9 of 2024 dated 17.09.2024, this appeal is decided ex-parte qua the assessee, after hearing the learned Departmental Representative and perusing the material available on record. 3. Having heard the learned Departmental Representative and having perused the material on record, we find that this appeal of the Revenue is no longer maintainable in view of the recent CBDT Circular No. 9 of 2024 dated 17.09.2024. The mandatory limit for cases in which Revenue can challenge the relief granted by the ld. CIT(A) now stands enhanced to Rs.60 lakhs. In this case, as agreed by the Assessing Officer vide his letter dated 13.08.2024, the tax effect of the present case is Rs.21,30,737/-, which is below the monetary limit prescribed by the CBDT vide circular No.9/2024. The concession granted by the CBDT is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and is dismissed as such. 4. It is, however, made clear that on re-verification at the end of the Assessing Officer if it comes out that the tax effect of more than Rs.60 lakhs 3 ITA No. 577/Ahd/2024 ITO Vs. Kantilal Bechardas Patel, thru LH Shri Dineshkumar Kantilal Patel AY : 2014-15 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 Application to recall the Tribunal order. The application should be filed within time limit prescribed in the Act. 5. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the open Court on 15/10 /2024 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad; Dated 15/10/2024 **btk आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ ) अपील ( / The CIT(A)- 5. िवभागीय ᮧितिनिध , आयकर अपीलीय अिधकरण , /DR,ITAT, Ahmedabad, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Ahmedabad 1. Date of dictation …………low tax effect.. 1. Date on which the typed draft is placed before the Dictating Member :..… 14.10.2024….…… 2. Other Member…14.10.2024…….………….. 3. Date on which the approved draft comes to the Sr.P.S./P.S…14.10.2024…… 4. Date on which the fair order is placed before the Dictating Member for pronouncement…15.10.2024 5. Date on which the fair order comes back to the Sr.P.S./P.S…15.10.2024…….……… 6. Date on which the file goes to the Bench Clerk…15.10.2024…….…… 7. Date on which the file goes to the Head Clerk……. 8. The date on which the file goes to the Assistant Registrar for signature on the order………… 9. Date of Despatch of the Order……………… "