The ACIT, Circle-7(2), Ahmedabad V. M/s. Chirag Construction, Ahmedabad

ITA 1952/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8268 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAMESHBHAI S PATEL
• Keywords: Audit objection; Tax effect
• Section: 27

Judgement Text

ITA NO. 1952/AHD/2015 & CO 146/AHD/2015 ACIT VS CHIRAG CONSTRUCTION ASSESSMENT YEAR: 2012-13 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND RAJPAL YADAV JM] ITA NO.1952/AHD/2015 & CO NO.146/AHD/2015 ASSESSMENT YEAR: 2012-13 ACIT ..................APPELLANT CIRCLE 7 (2), AHMEDABAD VS. M/S. CHIRAG CONSTRUCTION ........................RESPONDENT & 32, PRABHUPARK SOCIETY, CROSS-OBJECTOR NR. BETHAK, NARODA, AHMEDABAD-382330 [PAN : AAGFC 2093 P] APPEARANCES BY: MUDIT NAGPAL FOR THE APPELLANT RAMESHBHAI S PATEL FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 26.10.2017 DATE OF PRONOUNCING THE ORDER : 26.10.2017 O R D E R PER PRAMOD KUMAR AM: 1. THIS APPEAL BY THE REVENUE AND THE CROSS-OBJECTI ON THEREOF BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 13.09.2015 PAS SED BY THE CIT(A)-7, AHMEDABAD IN THE MATTER OF PENALTY UNDER SECTION 27 1(1)(C) OF THE INCOME-TAX ACT FOR ASSESSMENT YEAR 2012-13. 2. THE GRIEVANCE RAISED BY THE ASSESSING OFFICER IS AS FOLLOWS:- THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DE LETING THE PENALTY OF RS.6,38,650/- WITHOUT CONSIDERING THE REASONS MENTI ONED BY THE AO IN HIS ORDER U/S 271(1)(C) AND WITHOUT CONSIDERING THE PRO VISIONS OF EXPLANATION 1 TO SECTION 271(1)(C) OF THE ACT. 3. SO FAR AS THE APPEAL OF THE REVENUE IS CONCERNED , AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE POINTS OUT THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LEARNED DEPARTMENTAL REPRESE NTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING P ERUSED THE MATERIAL ON RECORD, WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF ITA NO. 1952/AHD/2015 & CO 146/AHD/2015 ACIT VS CHIRAG CONSTRUCTION ASSESSMENT YEAR: 2012-13 PAGE 2 OF 2 CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/200 7-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BEL OW RS. 10 LACS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURT HER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIO NS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON S OME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLA USE AND THE TAX IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTA INABLE AND HENCE DISMISSED. 5. THE APPEAL OF THE REVENUE IS THUS DISMISSED IN LIMINE. 6. AS THE APPEAL FILED BY THE REVENUE ITSELF IS FOU ND TO BE NON-MAINTAINABLE AND AS THE CROSS-OBJECTION OF THE ASSESSEE ARISES ONLY AS A RESULT OF THIS APPEAL, THE CROSS OBJECTION FILED BY THE ASSESSEE IS ALSO DISMI SSED AS INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL AND CROSS-OBJECTION, B OTH ARE DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 26 TH DAY OF OCTOBER, 2017. SD/- SD/- RAJPAL YADAV PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 26 TH DAY OF OCTOBER, 2017 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ......26.10.2017.... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ... 26.10.2017........ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: ..26.10.2017..... . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: ... 26.10.2017...... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 26.10.2017.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: ..