Sorath Builders, Ahmedabad V. The ACIT, (OSD), Circl-9, Ahmedabad

ITA 1296/AHD/2014

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6182 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 02-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ROHAN POPAT
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 1296/AHD/2014 / ASSESSMENT YEAR : 2010-11 SORATH BUILDERS, 92, CITI CENTRE, NEAR SWASTIK CROSS ROADS, CG ROAD, NAVRANGPURA, AHMEDABAD PAN: AAHFS 7484 F VS ASSISTANT COMMISSIONER OF INCOME-TAX (OSD), CIRCLE-9, AHMEDABAD ./ ITA NO. 1882/AHD/2014 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME-TAX (OSD), CIRCLE-9, AHMEDABAD VS SORATH BUILDERS, 92, CITI CENTRE, NEAR SWASTIK CROSS ROADS, CG ROAD, NAVRANGPURA, AHMEDABAD PAN: AAHFS 7484 F / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI ROHAN POPAT, AR REVENUE BY : SHRI MUDIT NAGPAL, SR DR DATE OF HEARING : 10/10/2019 DATE OF PRONOUNCEMENT IN COURT : 10/10/2 019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE AND THE ASSESSEE ARE IN CROSS-APPEALS A GAINST THE ORDER OF THE LEARNED CIT(A)-XX, AHMEDABAD DATED 31.03.201 4 PASSED FOR ASSESSMENT YEAR 2010-11. 2. AS FAR AS THE APPEAL OF THE ASSESSEE IS CONCERN ED, THE LEARNED COUNSEL FOR THE ASSESSEE MADE A STATEMENT AT THE BAR THAT T HE ASSESSEE DOES NOT WANT TO PURSUE ITS APPEAL; THEREFORE, IT IS DISMISSED AS NOT PRESSED. 3. AS FAR AS THE APPEAL OF THE REVENUE IS CONCERNED , IT HAS TAKEN FOUR GROUNDS OF APPEAL, OUT OF WHICH GROUND NOS. 3 & 4 A RE GENERAL IN NATURE. IN ITA NOS. 1296 & 1882/AHD./2014 ASSESSEE : SORATH BUILDERS AY : 2010-11 2 GROUND NOS. 1 & 2, THE REVENUE HAS PLEADED THAT LEA RNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.10,50,000/-, WHICH W AS ADDED BY THE ASSESSING OFFICER ON ACCOUNT OF UNSECURED LOAN, AND IN DELETING THE ADDITION OF RS.76,32,720/- OUT OF TOTAL ADDITION OF RS.92,82 ,225/-. A PERUSAL OF THE GROUNDS OF APPEAL WOULD INDICATE THAT THE TAX EFFEC T BY VIRTUE OF RELIEF GIVEN BY THE LEARNED CIT(A) ON BOTH THESE ISSUES IS LESS THAN RS.50 LAKHS. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.201 9. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STANDS ENHANCED TO RS.50 LAKHS. THIS CONCESSIO N GRANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTI VE IN EFFECT INASMUCH AS IT APPLIES TO ALL PENDING APPEALS AS WELL. IN VIEW OF THE ABOVE POSITION, THE APPEAL FILED BY THE REVENUE IS NO LONGER MAINTAINAB LE AND IS DISMISSED AS SUCH. 4. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFFECT OF MORE THAN RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WI THIN THE EXEMPTION CLAUSE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERT Y TO FILE MISCELLANEOUS APPLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLI CATION SHOULD BE FILED WITHIN TIME LIMIT PRESCRIBED IN THE ACT. 5. IN THE RESULT, APPEAL OF THE ASSESSEE AND REVENU E, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 10 TH OCTOBER, 2019 AT AHMEDABAD. SD/- SD /- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 10/10/2019 *BIJU T., SR. PS / COPY OF THE ORDER FORWARDED TO : ITA NOS. 1296 & 1882/AHD./2014 ASSESSEE : SORATH BUILDERS AY : 2010-11 3 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT. REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION- COVERED BY CBDT CIRCULAR .10.1 0.2019 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .10.10.2019 OTHER MEMBER 10.10.2019 . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. - 10.10.2019 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 10.10.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10. 10.2019 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER 8. DATE OF DESPATCH OF THE ORDER