The ITO, Ward-5(2), Ahmedabad V. M/s. PASL Windtech Pvt. Ltd., Ahmedabad

ITA 1351/AHD/2014

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5262 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 07-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 271(1)(c)

Judgement Text

ITA NO.1351/AHD/2014 ITO VS. PASL WINDTECH PVT LTD ASSESSMENT YEAR: 2007-08 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR, VP AND MS. MADHUMITA ROY, JM] ITA NO.1351/AHD/2014 ASSESSMENT YEAR: 2007-08 INCOME TAX OFFICER, WARD-5(2), AHMEDABAD. ...... ...... APPLICANT VS. PASL WINDTECH PVT. LTD., .. .. RESPONDENT PLOT NO.37B, PHASE-I, GIDC ESTATE, VATVA, AHMEDABAD 382 445. [PAN: AABCA 3022 G ] APPEARANCES BY S.K. DEV FOR THE APPLICANT S.N. SOPARKAR FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 15.01.2019 DATE OF PRONOUNCING THE ORDER : 29.01.2019 O R D E R PER PRAMOD KUMAR, VICE PRESIDENT: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 26 TH FEBRUARY, 2014, PASSED BY THE LEARNED CIT(A)-XI, A HMEDABAD DELETING PENALTY OF RS.15,92,233/- IMPOSED UNDER SE CTION 271(1)(C) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2007-08, ON T HE FOLLOWING GROUNDS: THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS.15,92,233/- UNDER SECTION 271(1)(C) I N RESPECT OF ADDITION OF RS.48,26,251/- MADE ON ACCOUNT OF NOTIO NAL PROPERTY INCOME. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD . CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE SET- ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED . 2. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2 018. THE LEARNED ITA NO.1351/AHD/2014 ITO VS. PASL WINDTECH PVT LTD ASSESSMENT YEAR: 2007-08 PAGE 2 OF 2 DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF TH E REVENUE IS NOT MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO.3/2018 IN F.NO. 279/MISC.142/2007-ITJ (PT) DATED 11 TH JULY, 2018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPEALS SHOULD BE FILED BEFORE THE TRI BUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LAKHS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLIC ABLE, WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPA RTMENT OR WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LAKHS. THEREFORE, THE PRESENT APPEAL IS NOT MAINT AINABLE AND HENCE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 29 TH JANUARY, 2019. SD/- SD/- MS. MADHUMITA ROY PRA MOD KUMAR (JUDICIAL MEMBER) (VICE PRESIDENT) AHMEDABAD, THE 29 TH DAY OF JANUARY, 2019 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD