The DCIT, Circle-6, Ahmedabad V. Shri Jayeshbhai Chhaganbhai Patel, Ahmedabad

ITA 137/AHD/2016

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 2686 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 19-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SHARMA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 137/AHD/2016 / ASSESSMENT YEAR: 2011-12 DCIT, CIR.4(2) AMBAWADI AHMEDABAD. VS SHRI JAYESHBHAI CHHAGANBHAI PATEL 40, NIRAN PARKSOCIETY OPP: SUN AND STEP CLUB SOLA ROAD, AHMEDABAD 61. PAN : AGEPP 3244 K / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI O.P. SHARMA, CIT-DR ASSESSEE BY : NONE / DATE OF HEARING : 11/10/2018 /DATE OF PRONOUNCEMENT : 12/10/2018 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : THIS IS REVENUES APPEAL AGAINST THE ORDER OF THE LD.CIT(A)-4, AMBAWADI, AHM EDABAD DATED 10.11.2015 PASSED FOR THE ASSESSMENT YEAR 2011-12. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE, THEREFO RE, WE PROCEED TO DISPOSE OF THE APPEAL AFTER HEARING LD.DR AND CONSI DERING MATERIAL AVAILABLE ON RECORD. IN THIS APPEAL REVENUE IS AGGR IEVED BY ACTION OF THE LD.CIT(A) IN DELETING VARIOUS ADDITION AS SET OUT I N THE GROUNDS OF APPEAL. 3. AT THE OUTSET BENCH HAS ENQUIRED WITH THE LD.DR, WHETHER EFFECTIVE TAX ON AGGREGATE OF ADDITIONS DISPUTED BY THE ASSES SEE IN THIS APPEAL IS ITA NO.137/AHD/2016 - 2 - BELOW RS.20 LAKHS SO AS TO ATTRACT RECENT CBDT CIRC ULAR RESTRICTING FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL, WHERE TAX EFFECT IS BELOW RS.20 LAKHS, THE LD.DR DID NOT CONTEST THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCO RDANCE WITH LAW. 4. WE FIND THAT THE APPEAL OF THE REVENUE IS PRESEN TED ON 19.1.2016. ON 11.7.2018 THE CBDT HAS ISSUED INSTRUCTION BEARIN G NO. 3 OF 2018 UNDER FILE NO.F.NO.279/MISC.142/2007-ITJ(PT) PROHIB ITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUN AL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.20 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRU CTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, TAX EFF ECT ON THE QUANTUM OF ADDITIONS CONTESTED BY THE REVENUE DOES NOT EXCEED RS.20 LAKHS. AS PER THE ABOVE CIRCULAR THE TAX EFFECT ON THE TOTAL IN COME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGA INST WHICH APPEAL IS FILED, IS LESS THAN RS.20 LAKHS. FURTHER, THE CASE OF THE REVENUE ALSO DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISI ONS OF SECTION 268A OF THE INCOME 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 COMES TO THE NOTICE THAT THE TAX EFFECT I S MORE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN TH E CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED ITA NO.137/AHD/2016 - 3 - IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF TH E REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON 12 TH OCTOBER, 2018. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER