The ACIT, Central Circle-2(2), Ahmedabad V. Shri Dinesh Jasraj Jain, Ahmedabad

ITA 1693/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9398 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 25-02-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 23-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SONIA KUMAR
• Keywords: Retrospective amendment; Deemed dividend; Tax effect
• Section: 143(3)

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE S/SHRI SHAILENDRA YADAV,JM, AND MANISH BORAD , AM ./ITA.NO.1693 & 1694/AHD/2011_ ( / ASSTT YEAR : 2006-07 & 2009-10) ACIT, CEN. CIR.2(2), AHMEDABAD. VS. SHRI DINESH JASRAJ JAIN, SWAGAT BUNGLOWS, NR. PARIMAL GARDEN, AHMEDABAD. PAN ABNPJ 6717D (APPELLANT) (RESPONDENT) / APPELLANT BY: MRS. SONIA KUMAR, SR.DR / RESPONDENT BY: SHRI TUSHAR HEMANI, AR / DATE OF HEARING 25/2/2016 /DATE OF PRONOUNCEMENT 26-02-2016 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER THE REVENUE IS IN APPEALS BEFORE US AGAINST THE CONSOL IDATED ORDER OF LD.CIT(A)-III, AHMEDABAD DATED 15/4/2011 PASSED FOR T HE ASST. YEAR 2006-07 AND 2009-10. 2. THE GRIEVANCES OF THE REVENUE, AS PER GROUNDS OF APP EAL IN ITA NO.1693/AHD/2011 ARE AS FOLLOWS :- 1) THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELET ING THE ADDITION OF RS.30,00,000/- MADE BY THE AO U/S 2(22)(E) AS DEEMED DIVIDEND INCOME. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE L D. CIT(A) OUGHT TO HAVE UPHELD THE ORDER PASSED U/S 143(3) R.W.S. 147 O F THE ACT. 3. THE GRIEVANCES OF THE REVENUE, AS PER GROUNDS OF APPEAL IN ITA NO.1694/AHD/2011 ARE AS FOLLOWS :- 1) THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELET ING THE ADDITION OF RS.15,00,000/- MADE BY THE AO U/S 2(22)(E) AS DEEMED DIVIDEND INCOME. ITA.NO.1693 & 1694/AHD/2011 - 2 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE L D. CIT(A) OUGHT TO HAVE UPHELD THE ORDER PASSED U/S 143(3) R.W.S. 147 O F THE ACT. 4. THESE APPEALS WERE PRESENTED ON 23/6/2011. ON 10.1 2.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBIT ING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNA L 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 APPLIC ABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. THE TAX EFFECT ON DELETION OF E ACH ADDITION WOULD BE LESS THAN RS.10 LAKHS. THE PRESENT APPEALS DESERVE TO BE D ISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTION S. THE CASES DO NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCT IONS. 5. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING TH E APPEALS, SUCH FACTORS WERE NOT CONSIDERED, THEREFORE, IN CASE, ON RE-V ERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS M ORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN T HE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS OR DER. SUCH APPLICATION SHOULD BE FILED WITHIN FOUR YEARS OF THIS ORDER. IN V IEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 26 FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( SHAILENDRA YADAV ) JUDICIAL MEMBER ( MANISH BORAD ) ACCOUNTANT MEMBER AHMEDABAD; DATED, 26/02/2016 ITA.NO.1693 & 1694/AHD/2011 - 3 ! '!/ COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. &$% / THE RESPONDENT. 3. '(( ) * / CONCERNED CIT 4. ) * ( ) / THE CIT(A)- 5. !-. , ,012 /DR,ITAT, AHMEDABAD, 6. .3 45 / GUARD FILE. ) ' / BY ORDER, ' (0 (ASSTT.REGISTRAR) ITAT, AHMEDABAD 1. DATE OF DICTATION .. : 26/2/2016. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER : 26/2/2016 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BA CK TO THE SR.P.S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK /2/16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER