The ACIT, Circle-6, Surat V. Shri Maheshbhai B.Gangani, Surat

ITA 1849/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1913 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 24-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Assessee Lawyers: M K PATEL
• Keywords: Rejection of books of accounts; Retrospective amendment; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO. 1849/AHD/2012 / ASSESSMENT YEAR: 2008-09 ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-6, SURAT VS. SHRI MAHESHBHAI B. GANGANI, 1-2, OM NAGAR SOCIETY, NEW KOSAD ROAD, AMROLI, SURAT PAN : AABFJ 9320 M [ / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI NARENDRA SINGH, SR. DR. ASSESSEE BY : SHRI M.K. PATEL, AR !'# / DATE OF HEARING : 09/03/2016 / DATE OF PRONOUNCEMENT: 01/04/2016 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LD. COMMISSIONER INCOME-TAX (APPEALS)-IV, SURAT DATED 2 9.05.2012 PASSED FOR THE ASSESSMENT YEAR 2008-09. 2. THE GRIEVANCES OF THE REVENUE, AS PER GROUNDS OF APPEAL, ARE AS FOLLOWS :- 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON A CCOUNT OF REJECTION OF BOOKS OF ACCOUNTS AND UNREASONABLE AND UNEXPLAINED FALL IN G.P. RATE TO THE TUNE OF RS.6,74,000/- ITA NO. 1849/AHD/2012 ACIT VS. SHRI MAHESHBHAI B GANGANI AY : 2008-09 - 2 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A), HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF PROFIT FROM TRANSFER OF AGRICULTURAL LAND TO THE TUNE OF R S.5,91,950/- 3) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A), HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF INELIGIBLE EXPENDITURE TO THE TUNE OF RS.5,42,639/- . 4) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A), SURAT OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 5) IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD. C IT(A)-IV, SURAT MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICERS OR DER MAY BE RESTORED. 3. THIS APPEAL WAS PRESENTED ON 09.03.2016. ON 10. 12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBI TING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUN AL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RE LIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BE EN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRU CTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. THE TAX EFFECT ON DELETION O F THIS TOTAL ADDITION WOULD BE LESS THAN RS.10 LAKHS. THE PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS P ROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WH ILE HEARING THE APPEAL, SUCH FACTORS WERE NOT CONSIDERED, THEREFORE, IN CAS E, ON RE-VERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE T AX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INST RUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ITA NO. 1849/AHD/2012 ACIT VS. SHRI MAHESHBHAI B GANGANI AY : 2008-09 - 3 ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN FOU R YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DIS MISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 1 ST APRIL, 2016 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER AHMEDABAD; DATED, 01/04/2016 !&''()(*'/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ++ ' ,' / CONCERNED CIT 4. ,' ) ( / THE CIT(A)- 5. (/0 &'& , , /DR,ITAT, AHMEDABAD, 6. 0456 / GUARD FILE. / BY ORDER, TRUE COPY + (ASSTT.REGISTRAR) ITAT, AHMEDABAD