The ITO, Ward-9(1), Ahmedabad V. M/s. Vraj Developers, Ahmedabad

ITA 1131/AHD/2014

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9362 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 30-09-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 16-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJDIP SINGH
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRADAD, JUDICIAL MEMBER & SHRI MANISH BORAD, ACCOUNTANT MEMBER I.T.A. NO. 1131/AHD/2014 ( / ASSESSMENT YEAR: 2009-10) ITO WARD- 9(1), A WING, 2 ND FLOOR, PRATYAKHSHKAR BHAVAN, AMBAVADI, AHMADABAD- 380015 / VS. M/S. VRAJ DEVELOPERS 203, DIVYA SADBHAV ARCADE, OPP. KIDS WORLD, MIRAMBICA SCHOOL ROAD, NARANPURA, AHMDABAD- 380013 ./ ./ PAN/GIR NO. : AAG FV2 855 G ( APPELLANT /RESPONDENT ) .. ( RESPONDENT /CROSS OBJECTOR ) / APPELLANT BY : SHRI RAJDIP SINGH, SR. DR. / RESPONDENT BY : NONE / DATE OF HEARING 30/09/2019 !'# / DATE OF PRONOUNCEMENT 30/09/2019 $%/ O R D E R PER MANISH BORAD AM:- THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-XV, AHMEDABAD (CIT(A) IN SHORT), DATED 09.01.2014 ARISING IN THE ASSESSMENT ORDER DATED 26.12.2011 PA SSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOM E TAX ACT, 1961 (THE ACT) IN THE ASSESSMENT YEAR 2009-10. ITA NO.1131/AHD/2014 [ITO VS. M/S. VRAJ DEVELOPERS] A.Y. 2009-10 - 2 - 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READ S AS UNDER:- 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XV , AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN LAW AND ON FACTS IN DI RECTING THE ASSESSING OFFICER TO ALLOW THE ASSESSEES CLAIM FOR DEDUCTION OF RS. 70,66,987/- U/S. 80IB(10) OF THE I.T. ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAE , THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD . COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AHMEDABAD MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 2 79/MISC/M- 93/2018-ITJ DT. 20/08/2019 HAS OBSERVED THAT CIRCUL AR NO.17/2019 DATED 08/08/2019 RELATING TO ENHANCEMENT OF MONETAR Y LIMITS IS ALSO APPLICABLE TO ALL PENDING APPEALS. AS PER AFO RESAID CIRCULAR READ WITH INSTRUCTIONS, ALL PENDING APPEALS FILED B Y REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LI TIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONET ARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE , THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STA TED TO BE NOT EXCEEDING RS.50 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. 17 OF 2019. ACCORDINGLY, 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.1131/AHD/2014 [ITO VS. M/S. VRAJ DEVELOPERS] A.Y. 2009-10 - 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) (MANISH B ORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 30/09/2019 TANMAY, SR. PS TRUE COPY !' #' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. $ / ASSESSEE 3. ) *+ , / CONCERNED CIT 4. ,- / CIT (A) 5. 012 33*+, *+#, 56$)$ / DR, ITAT, AHMEDABAD 6. 289 : / GUARD FILE. BY ORDER / $% , ;/ 5 *+#, 56$)$ < 1.DATE OF DICTATION ON 30.09.2019 AS PER LOW TA X EFFECT FORMAT 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 30.09.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 01.10.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 30.09.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 01.10.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 01.10.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER THIS ORDER PRONOUNCED IN OPEN COURT ON 30/09/2019