The ITO, Ward-6(1)(3), Ahmedabad V. Shri Naresh Ramsinhbhai Thakor, Ahmedabad

ITA 209/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9385 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 23-09-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 25-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A; 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.209/AHD/2017 / ASSTT.YEAR : 2007-2008 ITO, WARD - 6(1)(3) AHMEDABAD. VS. SHRI NARESH RAMSINHBHAI THAKOR THAKOR VAS KHOKHARA AHMEDABAD ROAD AHMEDABAD. ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI VINOD TANWANI, SR.DR ASSESSEE BY : MS.URVASHI SHODHAN, AR / DATE OF HEARING : 23/09/2019 / DATE OF PRONOUNCEMENT: 23/09/2019 / 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 28.11.2016 PASSED FOR THE ASSESS MENT YEAR 2007-08. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE I D.CIT(A) IN DELETING ADDITION MADE BY THE AO UNDER SECTION 68 OF THE ACT . 3. THE ID.COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT DISPUTED ADDITION IN THE PRESENT APPEAL IS RS.67,46,000/-, A ND THEREFORE, TAX EFFECT ON THE SAME IS THAN RS.50 LAKHS. SHE FILED A COPY O F DEMAND NOTICE EXHIBITING DEMAND OF RS.43,96,060/- BEING TAX REQUI RES TO BE PAID ALONG WITH INTEREST. SHE SUBMITTED THAT BY VIRTUE OF RECE NT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUC TED NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. THE ID.DR, HOWEVER, ITA NO.209/AHD/2017 2 DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CI RCULAR AND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL OF THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CITED (S UPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE DISPUTED ADDI TION IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBD T 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 DI SMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION 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 APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF THE RE VENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 23 RD SEPTEMBER, 2019 AT AHMEDABAD. (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER