ITO, Ward-3(3)(3), Ahmedabad V. Manju Rameshprasad Goenka, Ahmedabad

ITA 1914/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8675 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 21-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AFAQ SAIYED
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3); 201; 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE ITO, WARD - 3(3)(3 ), AHMEDABAD (APPELLANT) VS MANJU RAMESHPRASAD GOENKA 5, SUYOG BUNGLOWS, OPP. ASHWARAJ BUNGLOWS, NR. PRAHLADNAGAR GARDEN, VEJALPURR, AHMEDABAD - 380052 PAN:AFCPG7541R (RESPONDENT) REV ENUE BY : S H RI VINOD TANWANI , SR. D . R. ASSESSEE BY: SHRI AFAQ SAIYED, A.R. DATE OF HEARING : 27 - 0 8 - 2 019 DATE OF PRONOUNCEMENT : 11 - 09 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL FOR A. Y. 2014 - 15 , ARI SES FROM ORDER OF THE CIT(A) - 3, AHMEDABAD DATED 05 - 06 - 2 017 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE GRIEVANCE OF THE REVENUE IS THAT THE LD. CIT(A) HA S ERRED IN DELETING ADDITION OF DISALLOWANCE OF INTEREST U/S. 24(B) OF RS. 1,00,78,007 / - . I T A NO . 1914 / A HD/20 17 A SS ESSMENT YEAR 2014 - 15 I.T.A NO. 1914 /AHD/20 17 A.Y. 2014 - 15 PAGE NO IT O VS. MANJU RAMESHPRASAD GOENKA 2 3. AT THE OUTSET, AFTER GOING THROUGH THE GROUNDS OF APPEAL AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WAS R AISED BY THE BENCH AS TO APPLICABILITY AND MAINTAINABILITY OF THE APPEAL FILED BY THE REVENUE IN VIEW OF RECENT CBDT CIRCULAR NO. 17/2019 DATED 08 - 08 - 2019 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENUE WH ERE THE TAX EFFECT IS BELOW RS.5 0 LAKHS, THE LD. DR DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WITH LAW. 4. WE FIND THAT THE APPEAL O F THE REVENUE IS PRESENTED ON 21.8.2017. ON 8.8.2019 THE CBDT HAS ISSUED INSTR UCTIONS BEARING NO. 1 7 OF 2019 UNDER FILE N O. F. 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 TH AN RS.5 0 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, 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 AP PEAL IS FILED, IS LESS THAN RS.5 0 LAKHS. FURTHER, THE CASE OF THE REVENUE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCU LAR. 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 APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CA SE ON RE - VERIFICATION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MORE OR REVENUE S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY I.T.A NO. 1914 /AHD/20 17 A.Y. 2014 - 15 PAGE NO IT O VS. MANJU RAMESHPRASAD GOENKA 3 TO APPROACH THE TRIBUNAL FOR RECALL OF THI S ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT O N 1 1 - 0 9 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 11 /0 9 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,