The ITO, Ward-3(1), Surat V. Shri Mangaldas Narayanbhai Patel, Surat

ITA 2134/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1215 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 16-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.2134/AHD/2013 / ASSTT. YEAR: 2004-2005 ITO, WARD - 3(1) SURAT. VS SHRI MAN G ALDAS NARAYANB H AI PATEL A/501, PINK CITY APARTMENT NR. WATER TANK, B/H. KHARWAR NAGAR KHATODARA, SURAT. ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI PRASOON KABRA, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 15/06/2016 / DATE OF PRONOUNCEMENT: 04/07/2016 $%/ O R D E R REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST TH E ORDER OF THE LD.CIT(A)- IV, SURAT DATED 31.5.2013 PASSED FOR THE ASSTT.YEA R 2004-05. 2. IN THIS CASE, AN ASSESSMENT ORDER WAS FRAMED UND ER SECTION 143(3) ON 31.10.2006. THE AO HAS DETERMINED THE TOTAL TAXABL E INCOME OF THE ASSESSEE AT RS.4,16,780/- WHICH INCLUDES AGRICULTURE INCOME OF RS.2,53,250/-. THE LD.AO HAS REOPENED THE ASSESSMENT, AND PASSED RE-ASSESSMENT O RDER ON 9.12.2011. IN THE REASSESSMENT ORDER, THE LD.AO HAS DETERMINED THE TO TAL TAXABLE INCOME AT RS.6,88,070/- INCLUDING THE AGRICULTURE INCOME OF R S.2,53,250/-. IF THIS INCOME IS DEBITED FROM THE INCOME DETERMINED UNDER SECTION 14 3(3), THEN, IT WOULD REVEAL THAT NET ENHANCEMENT IN THE RE-ASSESSMENT ORDER IS OF RS .2,71,287/-. THE LD.CIT(A) HAS QUASHED THE ASSESSMENT ORDER, WHICH IS CHALLENGED B Y THE REVENUE BEFORE THE TRIBUNAL. TO MY MIND, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE, BECAUSE OF LOW TAX EFFECT INVOLVED IN IT. THE TAX EFFECT ON THE NET ADDITION OF RS.2,71,287/- IN RE-ASSESSMENT ORDER WOULD BE FAR LESS THAN THE PRES CRIBED LIMIT OF RS.10 LAKHS PRESCRIBED IN BY THE CBDT BY INSTRUCTION NO.21/2015 RESTRICTING THE FILLING OF THE ITA NO.2134/AHD/2013 2 APPEAL BY THE REVENUE WHERE THE TAX EFFECT IS BELOW RS.10 LAKHS. THE LD.DR DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE MAY B E LEFT TO THE AO TO DECIDE WHETHER THE TAX EFFECT IS BELOW RS.10 LAKHS AS STIP ULATED IN THE INSTRUCTIONS OF THE CBDT. 3. ON DUE CONSIDERATION OF THE RECORD, I AM OF THE VIEW THAT THIS APPEAL IS NOT MAINTAINABLE, HENCE, DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 4 TH JULY, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 04/07/2016 $% & ''() *$)' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! ( ) / THE CIT(A) 5. $%& '' , / DR, ITAT, 6. &)* + / GUARD FILE. $% + / BY ORDER, ,/ - ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD