The Dy. Commissioner of Income Tax, Circle-4(2), Ahmedabad V. M/s. Vaibhav Laxmi Corporation, Ahmedabad

ITA 1709/AHD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9388 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-09-2019
• Assessment Year: 2006-2007
• Appeal Filed On: 23-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: GULAB THAKOR ARS
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 1709/AHD/2016 & C.O. NO. 115/AHD/2016 ( / ASSESSMENT YEAR: 2006-07) DCIT CIR. 4(2), AHMEDABAD M/S. VAIBHAV LAXMI CORPORATION 50, HARISIDH CHAMBERS ASHRAM ROAD, AHMEDABAD / VS. M/S. VAIBHAV LAXMI CORPORATION 50, HARISIDH CHAMBERS ASHRAM ROAD, AHMEDABAD DCIT CIR. 4(2), AHMEDABAD ./ ./PAN/GIR NO. : AAC FV0 498 B ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VINOD TANWANI, SR. DR / RESPONDENT BY: SHRI GULAB THAKOR, ARS !' /DATE OF HEARING 13/09/2019 #$!' / DATE OF PRONOUNCEMENT 23/09/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2006-07, A RISE FROM ORDER OF THE CIT(A)-5, AHMEDABAD DATED 22.03.2016, IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 254 OF THE INCOME TAX ACT, 1961; IN SHORT TH E ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. WHETHER THE LD. CIT(A) HAS ERRED IN LAW ON THE FACTS IN DELETING THE DISALLOWANCE OF RS. 60,23,810/- OUT OF COMPENSATION RECEIVED FOR SURRENDERING ITS RIGHTS. ITA NO. 1709/AHD/2016 & C.O. NO. 115/AHD/2016 [DCI T VS. VAIBHAV LAXMI CORPORATION] A.Y. 2006-07 2 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. CROSS OBJECTION NO. 115/AHD/2016 (A. Y. 2006-07):- 6. THE ASSESSEE HAS NOT PRESSED FOR THE CROSS OBJECT ION. THEREFORE, THE CROSS OBJECTION OF THE ASSESSEE IS DISMISSED. 7. IN THE RESULT, CROSS OBJECTION OF THE ASSESSEE I S DISMISSED. SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 23/09/2019 TANMAY TRUE COPY THIS ORDER PRONOUNCED IN OPEN COURT ON 23/09/2019 ITA NO. 1709/AHD/2016 & C.O. NO. 115/AHD/2016 [DCI T VS. VAIBHAV LAXMI CORPORATION] A.Y. 2006-07 3 / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 16.09.2019 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 16.09.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 23.09.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 16.09.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 23.09.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23.09.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER