The Dy. CIT, Central Circle-1, Baroda V. Shri Sureshbhai J. Shah, Baroda

ITA 1109/AHD/2016

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0730 (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: 2012-2013
• 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. 1109/AHD/2016 ( ASSESSMENT YEAR : 2012-13) DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-1, AAYKAR BHAVAN, RACE COURSE CIRCLE, BARODA / VS. SHRI SURESHBHAI J. SHAH 7, SIDDHARTH NAGAR SOCIETY, VIP ROAD, KARELIBAUG, BARODA- 390018 ./ ./ PAN/GIR NO. : AGAPS6520R ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI ALBINUS TIRKEY, SR. D.R. / RESPONDENT BY : NONE 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 ARISING IN THE PENALTY ORDER DATED 16.07.2014 PASSE D BY THE ITA NO.1109/AHD/16 [DCIT VS. SHRI SURESHBHAI J. SHA H] A.Y. 2012-13 - 2 - ASSESSING OFFICER (AO) UNDER S. 271AAA OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING ASSESSMENT YEAR 2012-13. 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.13,00,000/- 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, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON ITA NO.1109/AHD/16 [DCIT VS. SHRI SURESHBHAI J. SHA H] A.Y. 2012-13 - 3 - 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 /2018