The ITO, Ward-4(1), Baroda V. M/s. Madhav Organisors Pvt.Ltd., Baroda

ITA 1774/AHD/2011

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7325 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-09-2019
• Assessment Year: 1993-1994
• Appeal Filed On: 08-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Tax effect

Judgement Text

ITA NO. 1774/AHD/2011 ITO VS. MADHAV ORGANISORS PVT LTD AY : 1993-94 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH D, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND AMARJIT S INGH, ACCOUNTANT MEMBER] ITA NO. 1774/AHD/2011 ASSESSMENT YEAR: 1993-94 INCOME TAX OFFICER ...............APPEL LANT WARD 4(1), BARODA VS M/S. MADHAV ORGANISORS PVT LTD ............ ........RESPONDENT AAVISHKAR COMPLEX, NR. VIDYUT NAGAR, OP ROAD, BARODA [PAN/GIR #: 31-613-CX-9721] APPEARANCES BY SHRI VINOD TANWANI, SR DR, FOR THE REVENUE SHRI PARIN SHAH, AR, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JANUARY 29, 2020 DATE OF PRONOUNCEMENT : JANUARY 30, 2020 O R D E R PER JUSTICE P P BHATT, PRESIDENT : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 28 TH FEBRUARY 2011, PASSED BY THE LEARNED CIT(A)-III, BARODA FOR THE ASSESSMENT YEAR 1993-94. 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE A S FOLLOWS: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LEARNED CIT(A) ERRED IN SUSTAINING THE ORDER OF THE ERSTWHILE CIT(A) WHE REIN THE LD. CIT(A) HAD ERRED IN LAW AND ON FACTS:- (I) IN PARTIALLY DELETING THE ADDITION OF RS.25,33,817/ - ON ACCOUNT OF ON MONEY RECEIPTS. (II) IN DELETING THE ADDITION OF RS.16,48,770/- ON ACCOU NT OF UNEXPLAINED CASH CREDIT. 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 ITA NO. 1774/AHD/2011 ITO VS. MADHAV ORGANISORS PVT LTD AY : 1993-94 PAGE 2 OF 3 DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 WHEREBY THE MONETARY LIMITS F OR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WAS ENHANCED FROM R S.20 LAKHS TO RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDI NG CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMI SSED AS NON-MAINTAINABLE AS HELD BY THIS TRIBUNAL IN THE CASE OF ITO VS. DIN ESH MADHAVLAL PATEL 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 THIS APPEAL IS LESS THAN THE LIM IT 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, THIS APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE IN VIEW OF THE CBDT CIRCULAR 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 STANDS ENHANCED TO RS.50 LAKHS. THIS CONCESSION GRANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTIVE IN EFFECT INASMUCH AS IT APPLIES TO ALL PENDING APPEALS AS WE LL. IN VIEW OF THE ABOVE POSITION, THE APPEAL OF THE REVENUE IS NO LONGER MA INTAINABLE AND IS DISMISSED AS SUCH. 6. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IF IT COMES OUT THAT THE TAX EFFE CT 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. PRONOUNCED IN THE OPEN COURT TODAY ON THE 30 TH JANUARY, 2020. SD/- SD/- AMARJIT SINGH JUSTICE P P BHATT (ACCOUNTANT MEMBER) (PRESIDENT) AHMEDABAD, DATED THE 30 TH DAY OF JANUARY, 2020 BT* ITA NO. 1774/AHD/2011 ITO VS. MADHAV ORGANISORS PVT LTD AY : 1993-94 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. D ATE OF DICTATION: ...LOW TAX EFFECT...29.01.2020.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE D ICTATING MEMBER: .. 29.01.2020....... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P. S./P.S.: .29.01.2020........ 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DI CTATING MEMBER FOR PRONOUNCEMENT:30.01.20 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. ...30.01.2020. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 30.01.2020. 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER: ... 8. DATE OF DESPATCH OF THE ORDER: ......