The ITO, Ward-1, Godhra V. Shri Chandrakant H. Sonaiya, Godhra

ITA 1539/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3322 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 23-10-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 21-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO. 1539/AHD/2017 / ASSESSMENT YEAR: 2011-12 INCOME TAX OFFICER, WARD-1, GODHRA VS. SHRI CHANDRAKANT H. SONAIYA, VRUNDAVAN NAGAR, BAMROLI ROAD, GODHRA-389001 PAN : AGYPS 3725 L / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI VINOD TANWANI, SR DR ASSESSEE BY : SHRI JIMI PATEL, AR ! / DATE OF HEARING : 23/10/2019 / DATE OF PRONOUNCEMENT: 13/11/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINS T THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-4, VAD ODARA DATED 10.03.2017 PASSED FOR ASSESSMENT YEAR 2011-12. 2. THE GROUNDS TAKEN BY THE REVENUE ARE AS FOLLOWS: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LEARNED CIT(A) ERRED IN RESTRICTING THE DISALLOWANCE OF UNEXPLAINE D CASH CREDIT OF RS.1,64,01,000/- TO RS.17,47,673/-, DISREGARDING TH E FACT THAT ASSESSEE COULD NOT ESTABLISH THE NATURE AND DETAILS OF EACH TRANSA CTIONS APPEARING IN THE UNACCOUNTED BANK ACCOUNT NO. 10575000243 WITH PLAUS IBLE AND SATISFACTORY EXPLANATION DURING THE ASSESSMENT PROCEEDINGS AS WE LL AS REMAND PROCEEDINGS BEFORE THE CIT(A). 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LEARNED CIT(A) ERRED IN RESTRICTING THE DISALLOWANCE OF UNEXPLAINE D CASH CREDIT OF RS.1,64,01,000/- TO RS.17,47,673/-, AND DIRECTING A O TO CALCULATE THIS ADDITION ON THE BASIS OF GP/NP, OVERLOOKING THE FAC T THAT ASSESSEE FAILED TO SUBMIT THE COPY OF LEDGER ACCOUNTS, CONFIRMATION, C OPY OF PURCHASE AS WELL AS SALE BILLS, TO ESTABLISH THAT THE SAID TRANSACTIONS WERE OF BUSINESS NATURE. ITA NO. 1539/AHD/2017 ITO VS. SHRI CHANDRAKANT H SONAIYA FOR AY: 2011-12 2 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) ERRED IN DELETING GP ADDITION OF RS. 9,78,620/- OVE RLOOKING THE FACT THAT ASSESSEE HAD NOT BROUGHT ON RECORD ANYTHING TO EXPL AIN THE FALL IN GP AS COMPARED TO THE PREVIOUS YEAR. 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, LEA RNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE R EVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 WHEREBY THE MONETAR Y LIMITS FOR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WAS ENHAN CED FROM RS.20 LAKHS TO RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. LEARNED COUNSEL FOR THE ASSESSEE ALSO SUBMITS THAT IN THE PRESENT CASE THE TAX EFFECT IS RS. 48,30,275/-, AS PER THE WORKING P LACED ON RECORD, WHICH IS BELOW THE PRESCRIBED LIMIT OF RS.50 LAKHS. THEREFO RE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AS NON-MAINTA INABLE AS HELD BY THIS TRIBUNAL IN THE CASE OF ITO VS. DINESH MADHAVLAL PA TEL IN ITA NO.1398/AHD/2004 FOR AY 1998-99 VIDE A CONSOLIDATED ORDER DATED 14.08.2019. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN THE LIMI T PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. AS LEARNED COUNSEL RIGHTLY CONTENDS, THE PRESENT AP PEAL OF THE REVENUE IS NO LONGER MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRC ULAR NO. 17 OF 2019 DATED 08.08.2019. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STAN DS ENHANCED TO RS.50 LAKHS. THIS CONCESSION GRANTED BY THE CENTRAL BOAR D OF DIRECT TAXES (CBDT) IS RETROSPECTIVE IN EFFECT INASMUCH AS IT APPLIES T O ALL PENDING APPEALS AS ITA NO. 1539/AHD/2017 ITO VS. SHRI CHANDRAKANT H SONAIYA FOR AY: 2011-12 3 WELL. IN VIEW OF THE ABOVE POSITION, THE APPEAL FI LED BY THE REVENUE IS NO LONGER MAINTAINABLE AND IS DISMISSED AS SUCH. 6. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFFECT OF MORE THAN RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WI THIN THE EXEMPTION CLAUSE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERT Y TO FILE MISCELLANEOUS APPLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLI CATION SHOULD BE FILED WITHIN TIME LIMIT PRESCRIBED IN THE ACT. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 13 TH NOVEMBER 2019 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 13/11/2019 BIJU T., SR.PS ! &'( )( / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! # / CONCERNED CIT 4. # ( ) / THE CIT(A) 5. & ! , ! , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION- 23.10.2019.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .23.10.2019.. OTHER MEMBER 13.11.2019. 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. - 13.11.2019. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 13.11.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK13 .11.2019 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER 8. DATE OF DESPATCH OF THE ORDER