ITO, Ward-2(1)(1), Ahmedabad V. M/s. Elegance Skyz Pvt. Ltd., Ahmedabad

ITA 1003/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8361 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-01-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 20-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEELIPKUMAR
• Assessee Lawyers: G C PIPARA
• Keywords: Tax effect
• Section: 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.3322/AHD/2016 AND ITA NO.1003/AHD/2018 [ / ASSTT.YEAR : 2013-14 AND 2014-15] ACIT, CENT.CIR.1(1) AHMEDABAD. VS. M/S.ELEGANCE SKYZ P.LTD. 5, PRERNADEEP BUNGALOW OPP: PRATISHTHA APARTMENT BODAKDEV, AHMEDABAD. PAN : AACCE 0138 L ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI DEELIP KUMAR, SR.DR ASSESSEE BY : SHRI G.C. PIPARA, AR / DATE OF HEARING : 22/01/2020 ! / DATE OF PRONOUNCEMENT: 22/01/2020 !/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: PRESENT THREE APPEALS ARE FILED AT THE INSTANCE OF THE REVENUE AGAINST ORDER OF LD.CIT(A)-11, AHMEDABAD DATED 5.9.2016 AN D 1.2.2018 PASSED FOR THE ASSTT.YEARS 2013-14 AND 2014-15 RESPECTIVELY. 2. BEFORE GOING TO THE MERIT OF THE CASES, THE LD.C OUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT TAX EFFECT ON THE DISPUTED ADDITIONS IN BOTH THE CASES IS BELOW RS.50 LAKHS. TO DEMONST RATE THAT THE LD.COUNSEL HAS FILED A LETTER DATED 20.1.2020 SHOWI NG CALCULATION OF TAX EFFECT BEING BELOW RS.50 LAKHS FOR EACH ASSESSMENT YEAR. IN VIEW OF THIS, HE SUBMITTED THAT BY VIRTUE OF RECENT CBDT CI RCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, T HE PRESENT APPEALS OF ITA NO.3322 /AHD/2016 AND 1003/AHD/2018 2 THE REVENUE ARE LIABLE TO BE DISMISSED AT THE THRES HOLD. PER CONTRA, THE LD.DR DID NOT DISPUTE APPLICABILITY OF THE RECENT C BDT CIRCULAR AND ALSO CALCULATION OF TAX EFFECT BEING BELOW RS.50 LAKHS I N EACH. HE, HOWEVER, LEFT THE ISSUE TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 3. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). TAX CALCULATION SHEET SHOWING ULTIMATE TAX EFFECT PLACE D ON RECORD BY THE LD.COUNSEL, IS AS UNDER: A.Y. DISPUTED AMOUNT OF ADDITION TAX AMOUNT RS. 2013-14 ADDITION ON ACCOUNT OF UNDISCLOSED INCOME - TAX @ 30% ON RS. 1,30,00,000/- 39,00,000/- SURCHARGE 1,95,000/- EDUCATION CESS 84,900/- SECONDARY & HIGHER EDUCATION CESS 40,950/- TOTAL TAX 42,17,850/- 2014-15 ADDITION ON ACCOUNT OF UNDISCLOSED INCOME - TAX @ 30% ON RS. 1,30,00,000/- 39,00,000/- SURCHARGE 1,95,000/- EDUCATION CESS 84,900/- SECONDARY & HIGHER EDUCATION CESS 40,950/- TOTAL TAX 42,17,850/- IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT O N THE DISPUTED ADDITION IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEALS OF THE REVENUE DESERVE TO BE DISMISSED. BOTH ARE DISMISSED. ITA NO.3322 /AHD/2016 AND 1003/AHD/2018 3 HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE A PPEALS OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 4. IN THE RESULT, APPEALS OF THE REVENUE IS DISMISS ED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 22 ND JANUARY, 2020 AT AHMEDABAD. S D / - (WASEEM AHMED) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER