The ITO, Ward-2(4), Surat V. Shri Ajay Purushottambhai Parmar, Surat

ITA 1666/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1800 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 07-04-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 07-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G C DAXINI
• Assessee Lawyers: M K PATEL
• Keywords: Tax effect

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA.NO.1666/AHD/2013 / ASSTT. YEAR: 2005-2006 ITO, WARD - 2(4) SURAT. VS SHRI AJAY PURUSHOTTAMBHAI PARMAR A/2, JAY DEEP, VISHWAKARMA SOCIETY MAJURA GATE, SURAT 395 002. PAN : ABEPP 6239 K ./ ITA.NO.1667/AHD/2013 / ASSTT. YEAR: 2005-2006 ITO, WARD - 2(4) SURAT. VS SHRI DEEPAK PURUSHOTTAMBHAI PARMAR A/2, JAY DEEP, VISHWAKARMA SOCIETY MAJURA GATE, SURAT 395 002. PAN : ABCPP 9332 P ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI G.C. DAXINI, SR.DR ASSESSEE BY : SHRI M.K. PATEL, AR / DATE OF HEARING : 07/04/2016 / DATE OF PRONOUNCEMENT: 08/04/2016 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THESE ARE TWO APPEALS BY THE REVENUE AGAINST THE OR DER OF THE LD.CIT(A)-II, SURAT OF EVEN DATED 20.03.2013 PASSED FOR THE ASSTT.YEAR 2005-06. ITA NO.1666 AND 1667/AHD/2013 2 2. THE ONLY COMMON ISSUE AGITATED BY THE REVENUE IN THESE TWO APPEAL IS AGAINST DELETION OF ADDITION OF RS.26.80 LAKHS ON ACCOUNT OF UNACCOUNTED SALES CONSIDERATION BY THE LD.CIT(A). 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE S UBMITTED THAT THE PRESENT APPEALS FILED BY THE REVENUE ARE NOT MAINTA INABLE IN VIEW OF THE RECENT CBDT INSTRUCTIONS DIRECTING THE DEPARTMENT N OT TO FILE APPEAL, WHERE TAX EFFECT IS BELOW RS.10 LAKHS. THE LD.COUN SEL HAS SUBMITTED THE TAX EFFECT ON THE IMPUGNED ADDITION IS LESS THAN RS .10 LAKHS, THEREFORE, THE APPEALS OF THE REVENUE ARE INADMISSIBLE AS PER THE ABOVE CBDT CIRCULAR. THE LD.DR HAS NOT DISPUTED THE CBDT INSTRUCTIONS R ELIED UPON BY THE ASSESSEE NOR DISPUTED TAX EFFECT ON THE IMPUGNE D ADDITION. 4. WE FIND THAT THE APPEALS OF THE REVENUE ARE PRES ENTED ON 7.06.2013. ON 10.12.2015 THE CBDT HAS ISSUED INSTR UCTIONS BEARING NO. 21/2015 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL 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 RET ROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, ADDITION DELETED BY THE LD.CIT(A) AND AGGRIEVED BY THE REVENUE IS RS.26.80 LAKHS. IN ACCO RDANCE WITH THE ABOVE CBDT CIRCULAR THE TAX EFFECT ON THE SAME WOUL D BE LESS THAN RS.10 LAKHS, AND THEREFORE, THE PRESENT APPEAL OF T HE REVENUE DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. ITA NO.1666 AND 1667/AHD/2013 3 FURTHER, THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINC E, WHILE HEARING THE APPEALS, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE ON RE-VERIFICATION AT THE END OF THE AO, IT CAME TO TH E NOTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCE PTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATIO N SHOULD BE FILED WITHIN LIMITATION. IN VIEW OF THE ABOVE, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DI SMISSED. ORDER PRONOUNCED IN THE COURT ON 8 TH APRIL, 2016 AT AHMEDABAD. SD/- SD/- ( N.K. BILLAIYA ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER