The Dy. CIT, Central Circle-1, Baroda V. M/s. Shri Krishna Developers, Baroda

ITA 1096/AHD/2016

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 8328 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 29-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALBINUS TIRKEY
• Keywords: Tax effect

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 1096/AHD/2016 ( ASSESSMENT YEAR : 2011-12) DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-1, AAYKAR BHAVAN, RACE COURSE CIRCLE, BARODA / VS. M/S SHREE KRISHNA DEVELOPERS 329/1, 329/2, OPP. SUN CITY, NEAR DARBAR CHOWKDI, MANJALPUR, BARODA-390011 ./ ./ PAN/GIR NO. : ABAFS7482B ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI ALBINUS TIRKEY, SR. D.R. / RESPONDENT BY : SMT. URVASHI SHODHAN, A.R. DATE OF HEARING 25/09/2018 !'# / DATE OF PRONOUNCEMENT 04/10/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-12, AHMEDABAD (CIT(A) IN SHORT), DATED 2.12.2015 ITA NO.1096/AHD/16 [DCIT VS. M/S. SHREE KRISHNA DEV ELOPERS] A.Y. 2011-12 - 2 - ARISING IN THE PENALTY ORDER DATED 21.08.2014 PASSE D BY THE ASSESSING OFFICER (AO) UNDER S. 271AAA OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING ASSESSMENT YEAR 2011-12. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS FACTS AND CIRCUMSTANCES OF THE CASE BY DELETING THE PENALTY U/S271AAA BY AMOUNTING TO RS.2,00,000/- IN SPITE OF THE FACT THAT THE ASSESSEE HAS NOT FULFILLED THE CONDITION (II) L AY DOWN IN PENALTY U/S271AAA, IN RESPECT TO SUBSTANTIATES THE MANNER I N WHICH THE UNDISCLOSED INCOME WAS DERIVED DURING THE COURSE OF ASSESSMENT & PENALTY PROCEEDINGS. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE I S HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, ITA NO.1096/AHD/16 [DCIT VS. M/S. SHREE KRISHNA DEV ELOPERS] A.Y. 2011-12 - 3 - IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 04/10/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 04/10/2 018