The ITO, Ward-9(2), Ahmedabad V. M/s. KNR BPL Joint Venture, Ahmedabad

ITA 22/AHD/2011

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8595 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 14-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 05-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Assessee Lawyers: MEHUL K PATEL
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE ITO, WARD - 9(2) , AHMEDABAD (APPELLANT) VS M/S. KNR BPL JOINT VENTURE, A/9, KUMUD APARTMENT, STADIUM CROSS ROAD, NAVRANGPURA, AHMEDABAD PAN:AAAAK5212F (RESPONDENT) REVENUE BY : S H RI LALIT P. JA IN , SR. D . R. ASSESSEE BY: SHRI MEHUL K. PATEL , A.R. DATE OF HEARING : 11 - 12 - 2 018 DATE OF PRONOUNCEMENT : 12 - 12 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMB ER : - THESE TWO APPEALS FILED REVENUE FOR A. Y. 2007 - 08 & 2008 - 09 , ARI SE FROM ORDER OF T HE CIT(A) - XV, AHMEDABAD DATED 23 - 11 - 2 010 & 29.07.2011 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2 . AT THE OUTSET, AFTER GO ING THROUGH THE GROUNDS OF TWO APPEAL S AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WAS RAISED BY THE BENCH AS TO APPLICABILITY AND MAINTAINABILITY OF THE APPEAL FILED BY THE REVENUE IN VIEW OF RECENT CBDT CIRCULAR NO.3/2018 DATED 11.7 .2018 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENUE WHERE THE TAX EFFECT IS BELOW RS.20 LAKHS, THE LD. DR I T A NO S . 22 & 2408 / A HD/20 11 A .Y. 2007 - 08 & 2008 - 09 I.T.A NO. 22 /AHD/20 11 A.Y. 2007 - 08 PAGE NO IT O VS. M/S. KNR BPL JOINT VENTURE 2 DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WITH LAW. 3 . WE FIND THAT THE TW O APPEAL S O F THE REVENUE ARE PRESENTED ON 4.1.2011 & 23.9.2011 RESPECTIVELY . ON 11.7.2018 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 3 OF 2018 UNDER FILE NO.F.NO.279/MISC.142/2007 - ITJ(PT) PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.20 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLI CABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, TAX EFFECT ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH APPEAL IS FILED, I S LESS THAN RS.20 LAKHS. FURTHER, THE CASE OF THE REVENUE DOES NOT 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 TH E PRESENT APPEAL S OF THE REVENUE D ESERVE TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE - VERIFICATION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MORE OR REVENUE S CASE FALLS WITHIN THE AMBI T OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, BOTH THE APPEAL S OF T HE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 4 . IN THE RESULT, BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT O N 12 - 12 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JU DICIAL MEMBER ACCOUNTANT MEMBER I.T.A NO. 22 /AHD/20 11 A.Y. 2007 - 08 PAGE NO IT O VS. M/S. KNR BPL JOINT VENTURE 3 AHMEDABAD : DATED 12 /12 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,