The DCIT, Circle-1(2), Baroda V. Smt. Pallavi Laheri Shah, Baroda

ITA 193/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3170 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 23-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO.193/AHD/2017 (ASSESSMENT YEAR : 2013-14) DCIT CIRCLE-1(2), BARODA VS. SMT. PALLAVI LAHERI SHAH B-1, PARSHWA RESIDENCY SNDT COLLEGE ROAD NR. KAMAT HOSPITAL AKOTA, BARODA [PAN NO. AGEPS 0195A] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI LALIT P.JAIN, SR.DR RESPONDENT BY : SHRI SURENDRA MODIANI, AR DATE OF HEARING 07/08/2018 DATE OF PRONOUNCEMENT 24 /08/2018 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL HAS BEEN FILED BY THE REVENUE B EFORE US AGAINST THE ORDER DATED 24.10.2016 PASSED BY THE COMMISSIONER OF INCO ME TAX(APPEALS)-5, VADODARA [LD.CIT(A) IN SHORT] FOR ASSESSMENT YEAR (AY) 2013 -14. 2. THE GROUND RAISED BY THE REVENUE READS AS UNDE R: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) ERRED IN LAW AND FACT IN DELETING THE DISALLOWANCE MADE O N ACCOUNT OF EXCESS CLAIM OF DEDUCTION OF RS.50,00,000/- U/S. 54EC OF THE ACT, W ITHOUT APPRECIATING THE FACT THAT THE THRESHOLD LIMIT OF THE ALLOWABLE DEDUCTION U/S.54EC IS RS.50,00,000/- ONLY. WHERE AS THE ASSESSEES CLAIM OF DEDUCTION OF RS.1,00,00,000/- U/S.54EC OF THE ACT, HAS BEEN ALLOWED BY THE LD.CIT(A). 3. AT THE OUTSET, AFTER GOING THROUGH THE GROUND OF APPEAL AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WAS RAISED B Y THE BENCH AS TO APPLICABILITY AND - 2 - ITA NO.193/AHD/2017 DCIT VS. PALLAVI LAHERI SHAH ASST.YEAR 2013-14 MAINTAINABILITY OF THE APPEAL FILED BY THE REVENUE IN VIEW OF RECENT CBDT CIRCULAR NO.3/2018 DATED 11.7.2018 RESTRICTING THE FILLING O F THE APPEAL BY THE REVENUE WHERE THE TAX EFFECT IS BELOW RS.20 LAKHS, THE LD.DR DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACC ORDANCE WITH LAW. 4. WE FIND THAT THE APPEAL OF THE REVENUE IS PRESEN TED ON 23.01.2017. ON 11.7.2018 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 3 OF 2 018 UNDER FILE NO.F.NO.279/MISC.142/2007-ITJ(PT) PROHIBITING ITS S UBORDINATE 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 THAN RS.2 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 CHARGEA BLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE I SSUE AGAINST WHICH APPEAL IS FILED, IS LESS THAN RS.20 LAKHS. FURTHER, THE CASE OF THE REV ENUE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW THE ABOVE CBDT 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 COMES TO THE NOTICE THAT THE TAX EFFECT IS MORE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPAR TMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH AP PLICATION SHOULD BE FILED WITHIN THE TIME - 3 - ITA NO.193/AHD/2017 DCIT VS. PALLAVI LAHERI SHAH ASST.YEAR 2013-14 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 DISM ISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 24/08/2018 SD/- SD/- (AMARJIT SINGH) ( MS. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 24/ 08 /2018 .., . ../ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-5, VADODARA 5. !'# , $ , / DR, ITAT, AHMEDABAD 6. #() *+ / GUARD FILE. / BY ORDER, ! //TRUE COPY// / ( DY./ASSTT.REGISTRAR) !, / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 7.8.2018 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 7.8.2018 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.24.8.18 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 24.8.18 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER