The ITO, Ward-5(3), Surat V. Shri Meghraj Rawatmal Gandhi, Surat

ITA 1687/AHD/2015

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 2049 (ITAT-SURAT)
• Duration Of Justice: 3 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 11-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCHES, SURAT BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND MS.MADHUMITA ROY, JUDICIAL MEMBER SR. NO. ITA NO. NAME OF APPELLANT NAME OF RESPONDENT 1 ITA NO.909/AHD/2016 ASSTT.YEAR 2011-12 JCIT (OSD) VAPI CIR.VAPI M/S.BILAKHIA HOLDINGS P.LTD., BILAKHAI HOUSE, MUKTANAND MARG CHALA, VAPI. PAN: AADCS 4420 J 2 2324/AHD/2016 ASSTT.YEAR 2012-13 ACIT, CIR.3(1) SURAT. SHRI HIMMATBHAI B. SAVANI 18, AROGYA NAGAR NR.POLICE PARADE GROUND ATHWALINES, SURAT. PAN: AEDPS 0242 M 3 - 4 1687/AHD/2015 WITH CO NO.140/AHD/2015 ASSTT.YEAR 2010-11 ITO, WARD - 2(2)(3) SURAT. SHRI MEGHRAJ RAWATMAL GANDHI 501-A-TOWER GREEN AVENUE APARTMENT GHOD DOD ROAD, SURAT. PAN : ABZPG 2884 Q 5-6 1017/AHD/2013 WITH CO NO.150/AHD/2013 ASSTT.YEAR 2009-10 ITO, WARD-2 VALSAD. JATINKUMAR JAYANTILAL PATEL PROP. OF J.J. BROTHERS APMC MARKET BECHAR ROAD, VALSAD. PAN : AIWPP 9915 H. 7 ITA NO.1352/AHD/2016 ASSTT.YEAR 2005-06 ACIT, VAPI CIR. VAPI. M/S.PRATHMESH AGENCIES SURVEY NO.693/2/2/2, VADFALIA, NAROLI BHILAD ROAD NR. NAROLI CHECK POST ITA NO.909/AHD/2016 AND OTHERS - 2- SILVASSA UT OF D&NH PAN : AAHFP 9565 G 8. 3212/AHD/2016 ASSTT.YEAR 2013-14 ITO, WARD- 2(2)(1) SURAT. M/S.B.L. DEVELOPERS PARAB, TAL: KAMREJ DIST. SURAT. PAN : AAKFB 5161 F REVENUE BY : MS.ANUPAMA SINGLA, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 20/11/2018 / DATE OF PRONOUNCEMENT: 20 /11/2018 / O R D E R PER BENCH: THE ABOVE APPEALS ARE FILED BY THE REVENUE AGAINST THE ORDERS OF LD.COMMISSIONER INCOME-TAX (APPEALS) INVOLVING RESPECTIVE ASSESSMENT YEARS. UPON RECEIPT OF NOTICE ON THE REVENUES APPEALS, SOME OF THE ASSESSEES MENTIONED IN THE CAUSE-TITLE HAVE ALSO FILED CROSS OBJECTIONS. 2. THE CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 HAS RAISED THRESHOLD MONETARY LIMITS FOR FILING DEPARTMENTAL APPEALS BEFORE THE APPELLATE TRIBUNALS. ACCORDINGLY, THE CBDT HAS INSTRUCTED THE DEPARTMENT NOT TO FILE APPEALS BEFORE THE INCOME TAX APPELLATE TRIBUNAL WHERE TAX EFFECT INCLUDING SURCHARGE IS BELOW RS.20.00 LAKHS. THIS CIRCULAR IS APPLICABLE TO THE PENDING APPEALS ALSO. ACCORDINGLY, REGISTRY OF THE TRIBUNAL IDENTIFIED ABOVE APPEALS FILED BY THE REVENUE WHERE TAX EFFECT IS BELOW RS.20.00 LAKHS. A LIST OF SUCH APPEALS WAS ACCORDINGLY PREPARED AND PLACED ON THE NOTICE BOARD OF THE TRIBUNAL. ITA NO.909/AHD/2016 AND OTHERS - 3- 3. IN THIS BEHALF, WHEN A QUERY WAS RAISED BY THE BENCH, THE LD.DEPARTMENTAL REPRESENTATIVE THOUGH, IN PRINCIPLE, DID NOT DISPUTE THE APPLICABILITY OF THE ABOVE CBDT CIRCULAR IN THE PRESENT CASES, BUT SUBMITTED THAT LIBERTY MAY BE GIVEN TO THE DEPARTMENT TO APPLY FOR RECALL OF THE ORDER IN SUCH CASES WHERE TAX EFFECT, ON FURTHER VERIFICATION OF THE RECORD, IS FOUND TO BE MORE THAN RS.20 LAKHS, OR SUCH CASES WHICH ARE MISTAKENLY LISTED AND SUMMARILY DISMISSED DUE TO LOW TAXES. 4. WE FIND THAT ON 11.7.2018 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 3 OF 2018 UNDER FILE NO.F.NO.279/MISC.142/2007-ITJ(PT) 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.20 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASES, TAX EFFECT ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH APPEAL IS FILED, IS LESS THAN RS.20 LAKHS. FURTHER, IT HAS NOT BEEN POINTED OUT TO US, WHETHER ANY OF THE CASES OF THE REVENUE FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEALS OF THE REVENUE DESERVE TO BE DISMISSED. THEY ARE ACCORDINGLY DISMISSED. HOWEVER, WE ARE NOT ADJUDICATING COS FILED BY THE ASSESSEE, WHICH WILL BE HEARD AND DISPOSED OF SEPARATELY. REGISTRY IS DIRECTED TO LIST TWO COS MENTIONED IN THE CAUSE TITLE FOR HEARING IN DUE COURSE OF TIME. ITA NO.909/AHD/2016 AND OTHERS - 4- 5. IT IS OBSERVED THAT IN CASE ON RE-VERIFICATION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT IS MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER RELATABLE TO SUCH CASES. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 6. IN THE RESULT, ALL THE APPEAL OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 20 TH NOVEMBER, 2018 AT SURAT. SD/- SD/- (MS.MADHUMITA ROY) JUDICIAL MEMBER (AMARJIT SINGH) ACCOUNTANT MEMBER SURAT; DATED 20 /11/2018