The ITO, Ward-3(3)(12), Ahmedabad V. Shri Bhavin Prakashbhai Shah, Ahmedabad

ITA 2075/AHD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9354 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-08-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 10-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Keywords: Retrospective amendment; Tax effect
• Section: 201; 268A; 6

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI KUL BHARAT , JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER SR. NO. ITA/IT(SS) A/ C.O. NO. ASSTT. YEAR NAME OF APPELLANT NAME OF RESPONDENT 1. 2075/AHD/2016 2013 - 14 ITO WARD - 3(3)(12), AHMEDABAD BHAVIN PRAKASHBHAI SHAH, AHMEDABAD PAN : AFBPS1354P 2. 2319/AHD/2016 2009 - 10 ITO WARD - 4(1)(4 ), AHMEDABAD VAISHALI AGRICOMM & MINES PVT. LTD., AHMED A BAD . PAN: AACCV2498L 3. 1717/AHD/2017 2008 - 09 ITO WARD - 5(2)(4), AHMEDABAD SAROJBEN G SHAH & OTHERS, AHMEDABAD . PAN: AAOFS9416L 4. C.O 46/AHD/2018 2008 - 09 SAROJBEN G SHAH & OTHERS, AHMEDABAD ITO WARD - 5(2)(4), AHMEDABAD . PAN: AAOFS9416L 5. IT(SS) 122/AHD/2017 2009 - 10 THE A.C.I.T, CENTRAL CIRLCE - 1(2) AHMEDABAD SHAILESH BALDEVBHAI PATEL, AHMEDABAD. PAN: AFJPP0885L 6. IT(SS) 123/AHD/2017 2007 - 08 THE A.C.I.T, CENTRAL CIRLCE - 1(2) AHMEDABAD BALDEVBHAI F. PATEL, AHMEDABAD. PAN: AFJPP0887J 7. IT(SS) 124/AHD/2017 2011 - 12 THE A.C.I.T, CENTRAL CIRCLE - 1(2), AHMEDABAD BALDEVBHAI F. PATEL, AHMEDABAD. PAN: AFJPP0887 J 8. 1399/AHD/2017 2012 - 13 THE A.C.I.T CENTRAL CIRCLE - 2(1)(1) AHMEDABAD INDIA GELATINE & CHEMICALS LTD., AHMEDABAD . PAN: AAACI3676F I TA NOS.2075/AHD/2009 AND 19 OTHERS 2 9. 3162/AHD/2015 2011 - 12 D.C.I.T - (1)(1), VADODARA DAKSHIN GUJARAT VIJ COMPANY LTD., VADODARA . PAN: AABCD8912C 10. 1363/AHD/2017 2012 - 13 ITO WARD - 4, ANAND SHASHIKANT RATILAL PATEL, ANAND . PAN: ASIPP3709R 11. 846/AHD/2016 2012 - 13 ITO WARD - 1(1)(1), VADODARA ARYAMAN TRADELINKS PVT. LTD., THANE . PAN: AAHCA5415D 12. 3248/AHD/2015 2012 - 13 D.C.I.T.CIRCLE - 3(1)(2) AHMEDABAD RIDDHI STEEL AND TUBE PVT. LTD., AHMEDABAD. PAN: AACCR0175J 13. 3076/AHD/2016 2013 - 14 D.C.I.T CIRCLE - 1(2), BARODA PLASICHEMIX INDUSTRIES, BARODA. PAN: AABFP8519L 14. 2023/AHD/2016 2012 - 13 ITO WARD SABARKANTHA OHM DEVELOPERS, SABARKANTHA. PAN: AACFO2907N 15. IT(SS) 209/AHD/2016 2012 - 13 D.CI.T. CIRCLE - 1(2) AHMEDABAD ANKUR OIL INDUSTRIES, AHMEDABAD. PAN: AABFA6682K 16. IT(SS) 335/AHD/2016 2010 - 11 ITO WARD - 4(2)(3), AHMEDABAD MOHAN D. BHARWAD, AHMEDABAD PAN: ADDPB0907D 17. 570/AHD/2017 2012 - 13 D.C.I.T CIRCLE - 3(1)(2) AHMEDABAD RAINBOW FLYING ACADEMY PVT. LTD. PAN: AADCR4934L 18. 258/AHD/2017 2008 - 09 ITO WARD - 4(2)(3) AHMEDABAD MAHENDRA BHIKHALAL BHAVSAR PAN: AALPB1331J 19. 1591/AHD/2016 2012 - 13 D.C.I.T CIRCLE - 1(1)(1) VADODARA BALAJIKRUPA ESTATES PVT. LTD., VADODARA PAN: AABCB9941K I TA NOS.2075/AHD/2009 AND 19 OTHERS 3 20. 1795/AHD/2017 2013 - 14 D.C.I.T. CIRCLE - 3(2) AHMEDABAD PRAHLADBHAI SHANKARBHAI PATEL PAN: ABRPP6268M (APPLICANT) ( RESPONENT ) REVENUE BY : SHRI S.K. DEV , SR. D.R ASSESSEE BY : 1. SHRI S.N. DIVATIA 2. SHRI TUSHAR P. HEMANI 3. SHRI D.K. PARIKH 4. SHRI M.J. SHAH 5. SHRI MEHUL K. PATEL 6. SHRI B. SOPARKAR 7. SHRI G.M. THAKOR 8. SHRI HEM CHHAJED / DATE OF HEARING : 27 / 08 / 201 9 / DATE OF PRONOUNCEMENT: 30 / 0 9 /201 9 / O R D E R PER BENCH: THE ABOVE APPEALS AND CO S HAVE BEEN FILED BY THE REVENUE AND THE ASSESSEE AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME - TAX (APPEALS) INVOLVING RESPECTIVE ASSESSMENT YEARS. T HE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS 50,00,000 .00 IN EACH OF THESE APPEALS. THE CROSS OBJECTIONS TAKEN UP FOR HEARING ARE EMANATING FROM THESE APPEALS AND LARGELY SUPPORT THE ORDERS PASSED BY THE LD. COMMISSIONER (APPEALS). 2. THE CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO. 17 OF 2019 DATED 8.8.2019 HAS RAISED THRESHOLD MONETARY LIMITS FOR FILING DEPARTMENTAL APPEALS BEFORE THE APPELLATE TRIBUNAL. ACCORDINGLY, THE I TA NOS.2075/AHD/2009 AND 19 OTHERS 4 CBDT HAS INST RUCTED THE DEPARTMENT NOT TO FILE APPEALS BEFOR E THE INCOME TAX APPELLATE TRIBUNAL WHERE TAX EFFECT INCLUDING SURCHARGE IS BELOW RS. 50.00 L AKHS. THIS CIRCULAR IS APPLICABLE TO THE PENDING APPEALS ALSO. THE RELEV ANT EXTRACT OF THE CIRCULAR ISSUED DATED 8 AUGUST 2019 READS AS UNDER: 2. AS A STEP TO WARDS FURTHER MANAGEMENT OF LITIGATION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME - TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY. THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME - TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50 , 00 , 000 2 BEFORE HIGH COURT 1 , 00 , 00 , 000 3 BEFORE SUPREME COURT 2 , 00 , 00 , 000 FROM THE ABOVE, IT IS CLEAR THAT THE IMPUGNED APPEALS FILED BY THE REVENUE ARE NOT MAINTAINABLE AS THE TAX EFFECT IS LESS THAN 50 LAKHS. THIS FACT CAN ALSO BE VERIFIED FROM THE GROUNDS OF APPEAL FILED BY THE REVENUE ALONG WITH THE MEMO OF APPEAL. 3. IN THIS BEHALF, WHEN A QUERY WAS RAISED BY THE BENCH, THE LD. DEPARTMENTAL REPRESENTATIVES THOUGH, IN PRINCIPLE, DID NOT DISPUTE THE APPLICABILITY OF THE ABOVE CBDT CIRCULAR IN THE PRESENT CASES, BUT SUBMITTED THAT LIBERTY MAY BE GIVEN TO THE DEPARTMENT TO A PPLY FOR THE RECALL OF THE ORDER IN SUCH CASES WHERE TAX EFFECT, ON FURTHER VERIFICATION OF THE RECORD, IS FOUND TO BE MORE THAN RS. 50 LAKHS, OR SUCH CASES WHICH ARE MISTAKENLY LISTED AND SUMMARILY DISMISSED DUE TO LOW TAXES. THE LD. COUNSELS APPEARING F OR THE ASSESSEES THOUGH ARGUED FOR DISMISSAL OF THE I TA NOS.2075/AHD/2009 AND 19 OTHERS 5 APPEALS OF THE REVENUE IN ACCORDANCE WITH THE ABOVE CBDT CIRCULAR, BUT AGREED TO THE PROPOSITION PUT FORTH BY THE LD. DR. 4. WE FIND THAT ON 8.8.2019 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 17 OF 2019 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL BEFORE THE TRIBUNAL AGAINST ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.50 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WIT H RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASES, TAX EFFECT ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMO UNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH APPEAL IS FILED, IS LESS THAN RS.50 LAKHS. FURTHER, IT HAS NOT BEEN POINTED OUT TO US, WHETHER ANY OF THE CASES OF THE REVENUE 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, WE ARE OF THE VIEW THAT THE PRESENT APPEALS OF THE REVENUE DESERVE TO BE DISMISSED. THEY ARE ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE - VERIFICATION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT IS MORE, OR REVENUE S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPR OACH THE TRIBUNAL FOR RECALL OF THIS ORDER RELATABLE TO SUCH CASES. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. I TA NOS.2075/AHD/2009 AND 19 OTHERS 6 5. SO FAR CO NO.46/ AHD/2018 IS CONCERNED, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SAME IS IN SUPPORT OF THE ORDER OF THE LD.CIT(A), AND IT MAY BE DISPOSED OFF ACCORDINGLY. IN VIEW OF THIS SUBMISSION OF THE COUNSEL, NO SEPARATE ADJUDICATION IS REQUIRED IN THIS BEHALF . ACCORDINGLY, THE CO S FILED BY THE ASSESSEE ARE DISMISSED. 6. IN THE RESULT, ALL THE APPEAL S OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT AND CROSS OBJECTION OF THE ASSESSEES ARE DISMISSED AS INFRUCTUOUS . ORDER PRONOUNCED IN THE COURT ON 30 /09 /2019 AT AHMEDABAD. - SD - - SD - ( KUL BHARAT ) JUDICIAL MEMBER ( WASEEM AHMED ) ACCOUNTANT MEMBER (TRUE COPY) AHMEDABAD; DATED 30 / 09 /201 9 MANISH