The DCIT, Circle-1(1)(2), Ahmedabad V. M/s. Bhagwati Banquets & Hotels Ltd., Ahmedabad

ITA 1942/AHD/2015

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9886 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 01-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJAN KUMAR SINGH
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA.NO.1942/AHD/2015 / ASSTT. YEAR: 2011-12 DCIT, CIR.1(1)(2) AHMEDABAD. VS. BHAGWATI BANQUET HOTELS LTD. 301, CIR.) PRAHALADNAGAR GARDEN ROAD S.G. ROAD, AHMEDABAD. PAN : AABCB 6825 A ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI RANJAN KUMAR SINGH, SR.DR ASSESSEE BY : SHRI MEHUL TALERA, AR / DATE OF HEARING : 06/12/2018 / DATE OF PRONOUNCEMENT: /12/2018 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-6, AHMEDABAD DATED 1.4.2015 PASSED FOR THE ASSTT.YEAR 2011-12. 2. BY THIS APPEAL, REVENUE HAS CHALLENGED ACTION OF THE LD.CIT(A) IN DELETING CERTAIN DISALLOWANCES AS SET OUT IN THE GR OUNDS OF APPEAL, WHICH WERE DENIED BY THE ASSESSING OFFICE IN AN ASSESSMENT ORD ER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT. 3. AT THE VERY OUTSET, THE LD.COUNSEL FOR THE ASSES SEE HAS DRAWN OUR ATTENTION TOWARDS RECENT CBDT CIRCULAR RESTRICTING FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BEL OW RS.20 LAKHS. HE ITA NO.1942/AHD/2015 2 POINTED OUT THAT TAX EFFECT IN THE PRESENT CASE IS BELOW MONETARY LIMIT PRESCRIBED BY THE CBDT, AND THEREFORE, APPEAL OF TH E REVENUE IS LIABLE TO DISMISSED AT THE THRESHOLD. 4. WHEN THE BENCH POINTED OUT TO THE LD.DR ABOUT MA INTAINABILITY REVENUES APPEAL BEFORE THE TRIBUNAL IN VIEW OF REC ENT CBDT CIRCULAR CITED BY THE LD.COUNSEL FOR THE ASSESSEE, THE LD.DR WAS U NABLE TO DISPUTE THE SAME, BUT LEFT TO THE TRIBUNAL TO DECIDE THE APPEAL IN AC CORDANCE WITH LAW. 5. WE HAVE HEARD LD.DR AND GONE THROUGH THE IMPUGNE D ORDERS. WE FIND THAT APPEAL OF THE REVENUE, WHICH IS FILED ON 1.7.2 015 IS HIT BY RECENT CBDT INSTRUCTION NO.3 OF 2018 DATED 11.08.2018 WHEREBY T HE BOARD HAS PROHIBITED ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPE AL BEFORE THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFEC T BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.20 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO . IN THE PRESENT CASE, THE TAX EFFECT ON THE QUANTUM OF DISPUTED DISALLOWA NCE DOES NOT EXCEED RS.20 LAKHS. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS HIT BY THE CBDT CIRCULAR AND HENCE NOT MAINTAINABLE. FURTHER, LD.DR HAS NOT POINTED OUT WHETHER THE CASE OF THE REVENUE FALL WI THIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR OR NOT. 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 CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT I S MORE OR REVENUES ITA NO.1942/AHD/2015 3 CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE A PPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT ORDER PRONOUNCED IN THE COURT ON 10 TH DECEMBER, 2018 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER