The ITO, Ward 5(1), Surat V. Shri Dhansukhlal K. Jariwala, Surat

ITA 1499/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0341 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 21-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.1497, 1498, 1499 AND 1500 /AHD/2013 / ASSTT. YEAR: 2005-06, 2006-07, 2007-08 AND 2008-09 ITO, WARD - 5(1) SURAT. VS SHRI DHANSUKHLAL K. JARIWALA 10-926, AMLIRAN NR. SANSKRIT PATHASALA SURAT. PAN : AAYPJ 7491 G. ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI PRASOON KABRA, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 14/10/2016 / DATE OF PRONOUNCEMENT: 14/10/2016 $%/ O R D E R THE PRESENT FOUR APPEALS ARE DIRECTED AT THE INSTAN CE OF THE ASSESSEE AGAINST COMMON ORDER OF THE LD.COMMISSIONER OF INCO ME-TAX (APPEALS)-I, SURAT DATED 18.3.2013 FOR THE ABOVE FOUR ASSESSMENT YEARS. 2. IN ALL FOUR APPEALS, COMMON ISSUE IS RAISED BY T HE REVENUE. REVENUE IS AGGRIEVED BY THE ACTION OF THE LD.CIT(A) IN DELETIN G PENALTIES LEVIED BY THE AO UNDER SECTION 221(1) OF THE INCOME TAX ACT, 1961 IN THE RESPECTIVE ASSESSMENT YEARS. 3. AT THE OUTSET, A QUERY FROM THE BENCH, AS TO ADM ISSIBILITY OF REVENUES APPEALS, IN VIEW OF LATEST CBDT INSTRUCTION, WHEREI N THE CBDT PROHIBITED THE ITA NO.1497/AHD/2013 AND 3 OTHERS 2 REVENUE FROM FILING OF APPEALS BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS, THE LD.DR UNABLE TO CONTROVERT THE SAM E. 4. WE FIND THAT THE REVENUE HAS FILED THE ABOVE APP EALS BEFORE THE TRIBUNAL ON 21.5.2013. AS PER THE LATEST CBDT CIRC ULAR NO.21/2015 DATED 10.12.2015, THE CBDT HAS RESTRICTED THE DEPARTMENT NOT TO FILE APPEAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS BEFORE THE TRIBUNAL . ADMITTEDLY, TAX EFFECT IN INDIVIDUAL APPEALS OF THE REVENUE IS BELOW RS.10 LA KHS AND THEY ARE HIT BY THE ABOVE CBDT CIRCULAR. FURTHER, THE ABOVE CIRCULAR H AS RETROSPECTIVE EFFECT, AND THEREFORE, APPEALS OF THE REVENUE PENDING AS ON THE DATE AND FALL WITHIN THE MONETARY LIMIT, ARE ALSO COVERED BY THE CIRCULA R, AND THEREFORE, THE PRESENT APPEALS ARE NOT MAINTAINABLE. THEY ARE, ACCORDINGL Y, DISMISSED. 5. IT IS FURTHER OBSERVED THAT IF ON RE-VERIFICATIO N AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR I T FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DE PARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AR E DISMISSED. ORDER PRONOUNCED IN THE COURT ON 14 TH OCTOBER, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 14/10/2016