The ITO, Ward-3(1)(2), Ahmedabad V. M/s. Parker Multi Commodities (I) Pvt.Ltd., Ahmedabad

ITA 134/AHD/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9376 (ITAT-AHMEDABAD)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 04-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: NEERAV DAD
• Keywords: Tax effect
• Section: 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.134/AHD/2020 [ / ASSTT.YEAR : 2011-12] ITO, WARD - 3(1)(2) AHMEDABAD. VS. PARKER MULTI COMMODITIES (I) P LTD A/93-97, PARISEEMA BLDG OPP: IFCI BHAVAN C.G. ROAD, NAVRANGPURA, AHMEDABAD 380 009. PAN : AAACP 9355 J ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI L.P. JAIN, SR.DR ASSESSEE BY : SHRI NEERAV DAD, CA / DATE OF HEARING : 04/01/2021 ! / DATE OF PRONOUNCEMENT: 04/01/2021 !/ O R D E R PER RAJPAL YADAV, VICE-PRESIDENT PRESENT APPEAL IS FILED AT THE INSTANCE OF THE REVE NUE AGAINST ORDER OF LD.CIT(A)-9, AHMEDABAD DATED 09-12-2019 PASSED FOR THE ASSTT.YEAR 2011- 12 CHALLENGING DELETION OF ADDITIONS BY THE CIT(A) AS SET OUT IN THE GROUNDS OF APPEAL. 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 TOTAL ADDITIONS OF RS.1,47,07,399/- AT THE 33.22% IS BELO W RS.50 LAKHS, THEREFORE, BY VIRTUE OF RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUCTED NOT TO FIL E APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. TH IS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, T HE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. PER CONTRA, THE LD.DR DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CI RCULAR AND ALSO TAX ITA NO.134/AHD/2020 2 EFFECT BEING BELOW RS.50 LAKHS IN THE ASSESSEE CASE . 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). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE DISP UTED ADDITION IS LESS THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW TH E ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCO ME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. 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 PPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 4 TH JANUARY, 2021 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT