The ITO, Ward-10(4), Ahmedabad V. Shri Surendra Mangaldas Shah (HUF), Ahmedabad

ITA 1530/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1611 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 09-05-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 23-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA. NO. 1530/AHD/2013 (ASSESSMENT YEAR:2008-09) INCOME-TAX OFFICER, WARD-10(4), AHMEDABAD APPELLANT VS. SURENDRA MANGALDAS SHAH (HUF) G-7, AMOLA CHAMBERS, C. G. ROAD, NAVRANGPURA, AHMEDABAD - 380009 RESPONDENT PAN: AACHS6590R /BY APPELLANT : SHRI DILEEP KUMAR, SR. D.R. /BY RESPONDENT : NONE /DATE OF HEARING : 09 .05.2016 /DATE OF PRONOUNCEMENT : 10.05.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF CIT(A)-XVI, AHMEDABAD, DATED 21.03.2013 FOR THE ASS ESSMENT YEAR 2008-09 ON FOLLOWING GROUND: (1). THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF INTEREST OF RS.11,86,097/- CLAI MED ITA NO. 1530/AHD/13 A.Y. 08-09 (ITO VS. SURENDRA M. SHAH (HUF)) PAGE 2 ON UNSECURED LOANS BEING TREATED BY THE AO AS BOGUS , WITHOUT APPRECIATING THE FACTS OF THE CASE AND THE FINDINGS BROUGHT OUT BY THE A.O. 3. ON THE DATE OF HEARING, NONE APPEARED ON BEHALF OF ASSESSEE BUT HOWEVER THE LD. D.R. FAIRLY ADMITTED T HAT THE TAX EFFECT ON THE IMPUGNED ADDITIONS IS LESS THAN THE L IMIT PRESCRIBED BY THE CBDT CIRCULAR OF 10.12.2015 BEARI NG NO. 21 OF 2015. 4. WE HAVE HEARD THE LD. D.R. AND PERUSED THE MATER IAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE D ELETION OF INTEREST OF RS.11,86,097/- THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOA RD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINS T RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTI VELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS A N UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, TH E TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MAT ERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED I N CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF TH E AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT AP PEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT ITA NO. 1530/AHD/13 A.Y. 08-09 (ITO VS. SURENDRA M. SHAH (HUF)) PAGE 3 MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WIT HOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS THE 10 TH DAY OF MAY, 2016. SD/- SD/- (MANISH BORAD) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD: DATED 10/05/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE $ %&%'( ) / CONCERNED CIT 4 )- / CIT (A) ,-./00'(1 '( 123& / DR, ITAT, AHMEDABAD 4/5678 / GUARD FILE. BY ORDER / 1 / 2% '( 123&