The DCIT, Circle-4(1)(14), Ahmedabad V. Shri Sanjaykumar Haribhai Patel , Ahmedabad

ITA 1927/AHD/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9044 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 30-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 271D; 268A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD [THROUGH VIRTUAL COURT] BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA.NO.1927/AHD/2019 / ASSTT.YEAR : 2014-15 DCIT, CIR.4(1)(1) AHMEDABAD. VS. SHRI SANJAYKUMAR HARIBHAI PATEL 401, SHUBHAM COMPLEX OPP: NAVRANGPURA DERASAR NAVRANGPURA PAN : ALQPP 3785 L / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI DILEEPKUMAR, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 06/08/2020 / DATE OF PRONOUNCEMENT: 06/08/2020 !'/ O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THIS IS REVENUES DIRECTED AGAINST ORDER OF THE LD. CIT(A)-8, DATED 24.10.2019 PASSED FOR THE ASSTT.YEAR 2014-15. 2. IN THIS APPEAL, THE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT(A) HAS ERRED IN DELETING PENALTY OF RS.38.00 LAKHS UND ER SECTION 271D OF THE INCOME TAX ACT, 1961. 3. WHEN THE BENCH ENQUIRED THE AO, WHETHER ITS APPE AL IS HIT BY RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, WHEREBY DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL B EFORE THE TRIBUNAL WHERE TAX EFFECT OR QUANTUM OF PENALTY IS BELOW RS. 50 LAKHS, THE LD.DR DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CI RCULAR AND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. CO NO.146/AHD/2016 2 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT QUANTUM OF PENALTY IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBD T CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, W E 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 CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT A ND/OR QUANTUM OF PENALTY IS MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE A CT. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE T O LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 6 TH AUGUST, 2020 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) VICE-PRESIDENT (WASEEM AHMED) ACCOUNTANT MEMBER