The ITO,TDS-4, Ahmedabad V. M/s. Shree Ram Vessel Scarap Pvt.Ltd., Bhavnagar

ITA 2205/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9707 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-01-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 02-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP MAJMUDAR
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.2205/AHD/2011 /BLOCK ASSTT. YEAR: 2010-2011 INCOME TAX OFFICER TDS-4, AHMEDABAD. VS M/S.SHREE RAM VESSEL SCRAP P.LTD. SHREE RAM HOUSE KHERGADA STREET KHARGATE,BHAVNAGAR. PAN : AHMSO 6360 E %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI PRADEEP MAJMUDAR, SR.DR ASSESSEE BY : SHRI MOHIT BALANI / DATE OF HEARING : 20/01/2016 / DATE OF PRONOUNCEMENT: 01/02/2016 )*/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF LD.COMMISSIONER INCOME-TAX (APPEALS)-XXI, AHMEDABAD DATED 10.6.2011 PASSED FOR THE ASSTT.YEAR 2010-11. 2. THE SOLE EFFECTIVE GROUND OF APPEAL OF THE REVEN UE IS THAT THE LD.CIT(A) HAS ERRED IN DELETING THE ORDER PASSED U/ S.201(1) OF THE IT ACT OF RS.8,76,359/- AND INTEREST CHARGED UNDER SECTION 20 1(1AOF THE ACT OF RS.52,584/-. ITA NO.2205/AHD/2011 2 3. THE LD.COUNSEL FOR THE ASSESSEE, AT THE OUTSET, SUBMITTED THAT THE PRESENT APPEAL FILED BY THE REVENUE IS NOT SUSTAINABLE IN V IEW OF RECENT CBDT CIRCULAR NO.21/2015 RESTRICTING THE FILING OF APPEA L BY THE REVENUE WHERE TAX EFFECT IS BELOW RS.10 LAKHS BEFORE THE TRIBUNAL. T HE LD.DR HAS NOT CONTROVERTED THE SUBMISSIONS OF THE ASSESSEE. 4. WE FIND THAT 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 EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 L AKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEA NING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO . IN THE PRESENT CASE, THE TAX, PENALTY AND INTEREST DEMAND IS RS.9,28,943/-, WHICH IS LESS THAN RS.10 LAKHS. THUS, THE PRESENT APPEAL DESERVES TO BE DIS MISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. IT IS FUR THER 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, I T 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 WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE F ILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REV ENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 1 ST FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( MANISH BORAD ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/02/2016