The DCIT.Circle-8, Ahmedabad V. M/s. Sanghvi Aerospace Pvt. Ltd., Ahmedabad

ITA 1521/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8583 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-07-2017
• Assessment Year: 2004-2005
• Appeal Filed On: 16-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANT JAVERI
• Assessee Lawyers: N C AMIN
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.1521/AHD/2014 WITH CO NO.195/AHD/2014 / ASSTT. YEAR: 2004-2005 DCIT, CIR.8 AHMEDABAD. VS. M/S.SANGHVI AEROSPACE P.LTD. 2 ND FLOOR, P.K. HOUSE ELLISBRIDGE AHMEDABAD 380 006. PAN : AACCS 7434 D / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI JAYANT JAVERI, SR.DR ASSESSEE BY : SHRI N.C. AMIN, AR ! / DATE OF HEARING : 04/09/2017 '#$ ! / DATE OF PRONOUNCEMENT: 06/09/2017 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL AGAINST THE ORDER OF THEL D.CI T(A)XIV, AHMEDABAD DATED 21.2.2014 PASSED FOR THE ASSTT.YEAR 2004-05. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD .CIT(A) IN DELETING THE ADDITIONS AS SET OUT IN THE GROUNDS OF APPEAL. ITA NO.1521/AHD/2014 2 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE H AS RAISED A PRELIMINARY ISSUE AS TO THE MAINTAINABILITY REVENUE S APPEALS BEFORE THE TRIBUNAL IN VIEW OF RECENT CBDT CIRCULAR RESTRICTING FILING OF APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS B ELOW RS.10 LAKHS. THE LD.AR HAS FILED CALCULATION SHEET SHOWI NG TAX EFFECT IN BOTH THE CASES BELOW RS.10 LAKHS. FOR THE SAKE OF BREVITY, THE SAME ARE REPRODUCED HEREUNDER: 1. INCOME ASSESSED RS.42,57,460/ 2. INCOME RETURNED RS.28,76,000/- DIFFERENCE RS.13,81,460/- TAX @ 35% ON RS.13,81,460/- RS. 4,83,511/- SC @ 2.5% RS. 12,087/- RS.4,95,598/- I.E. RS.4,95,600/- HOWEVER, THE LD.DR DID NOT DISPUTE THE SAME, RATHER LEFT TO THE TRIBUNAL TO DECIDE THE APPEALS APPROPRIATELY. 4. WE HAVE HEARD LD.DR AND GONE THROUGH THE IMPUGNE D ORDERS. WE FIND THAT APPEAL OF THE REVENUE, WHICH IS FILED ON 13.5.2014 IS HIT BY RECENT CBDT INSTRUCTION NO.21 O F 2015 DATED 10.12.2015 WHEREBY THE BOARD HAS PROHIBITED ITS SUBO RDINATE AUTHORITIES FROM FILING OF THE APPEAL BEFORE THE TR IBUNAL 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.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT , MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDI NG APPEALS ALSO. IN THE PRESENT CASE, TAX EFFECT AS PER THE CALCULAT ION SHEET REPRODUCED ABOVE, ON THE ADDITIONS DELETED BY THE L D.CIT(A) AND CONTESTED BY THE REVENUE, WOULD BE LESS THAN RS.10 LAKHS. ITA NO.1521/AHD/2014 3 THEREFORE, THE PRESENT APPEAL DESERVES TO BE DISMIS SED BEING TREATED TO BE FILED IN VIOLATION OF THE ABOVE CBDT I NSTRUCTION. IT IS DISMISSED. 5. IT IS FURTHER OBSERVED THAT ON RE-VERIFICATION A T THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE O R IT FALLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED DUE TO LOW TAX EFFECT. 7. THE LD.COUNSEL FOR THE ASSESSEE DID NOT PRESS TH E CO, HENCE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 6 TH SEPTEMBER, 2017. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER