The Income Tax Officer, Ward -5(1), Surat V. M/s. Chandrika Enterprise, Surat

ITA 2004/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1214 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2003-2004
• Appeal Filed On: 26-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.2004/AHD/2013 / ASSTT. YEAR: 2003-2004 ITO, WARD - 5(1) SURAT. VS M/S.CHANDRIKA ENTERPRISE 9/887, NR.CHORYASI DAIRY AMBAJI ROAD SURAT. PAN : AADFC 2223 S. ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI DINESH SINGH, SR.DR ASSESSEE BY : SHRI TUSHAR HEMANI / DATE OF HEARING : 22/06/2016 / DATE OF PRONOUNCEMENT: 04/07/2016 $%/ O R D E R THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINS T THE ORDER OF THE LD.CIT(A)-I, SURAT DATED 10.5.2013 PASSED FOR THE A SSTT.YEAR 2003-2004. 2. SOLITARY GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) IS ERRED IN GIVING RELIEF OF RS.18.08 LAKHS ON ACCOUNT OF UNACC OUNTED CAPITAL. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE S UBMITTED THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LAKHS, AND THE REFORE, APPEAL FILED BY THE REVENUE IS NOT ADMISSIBLE, IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10.12.2015. BY VIRTUE OF THIS INSTRUCTION, THE BOA RD HAS RESTRAINED THE DEPARTMENT NOT TO FILE APPEAL BEFORE THE TRIBUNAL W HERE THE TAX EFFECT IS BELOW RS.10 LAKHS, AND THEREFORE, APPEAL OF THE REV ENUE LIABLE TO BE ITA NO.2004/AHD/2013 2 DISMISSED IN LIMINE . THE LD.DR COULD NOT CONTROVERT TO THIS SUBMISSIO N OF THE LD. COUNSEL FOR THE ASSESSEE. 4. WE FIND THAT THE REVENUE HAS FILED THIS APPEAL ON 26.7.2013. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO 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.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRE SENT CASE, THE IMPUGNED DELETION OF ADDITION IS RS.18.08 LAKHS ON WHICH THE TAX EFFECT WOULD BE LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPEAL DE SERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INST RUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING THE APPEAL, SUCH FACTORS COULD NOT BE CROSS- VERIFIED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WI LL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLIC ATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. IN VIEW OF TH E ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 4 TH JULY, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 04/07/2016