The Dy. Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad V. Adani Properties Pvt. Ltd., Ahmedabad

ITA 2234/AHD/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1344 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 31-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: BIRAN SHAH
• Keywords: Tax effect; Set aside
• Section: 143(3); 115JB

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./I.T.A. NOS. 2234/AHD/2016 & 2742/AHD/2017 ( / ASSESSMENT YEARS: 2013-14 & 2014-15) DCIT CIRCLE- 1(1), AHMEDABAD / VS. ADANI PROPERTIES PVT. LTD. 8 TH FLOOR, SHIKHAR, NR. MITHAKALI CIRCLE NAVRANGPURA AHMEDABAD- 380009 ./ ./PAN/GIR NO. : AAB CA3 182 H ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI L. P. JAIN, SR. DR / RESPONDENT BY: SHRI BIRAN SHAH, AR !' /DATE OF HEARING 23/08/2019 #$!' / DATE OF PRONOUNCEMENT 11/09/2019 %& /O R D E R PER MAHAVIR PRASAD- JM: THESE TWO APPEALS FILED BY THE REVENUE FOR A.YS. 20 13-14 & 2014-15, ARISE FROM ORDER OF THE CIT(A)-1, AHMEDABAD DATED 2 9.06.2016 & 21.09.2017, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME T AX ACT, 1961; IN SHORT THE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- ITA NO. 2234/AHD/2016:- 1. ON THE FACT AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF T HE ITA NOS. 2234/AHD/2016 & 2742/AHD/2017 A.YS. 2013-14 & 2014-15 2 ASSESSING OFFICER TO THE EXTENT MENTIONED ABOVE SIN CE THE ASSESSEE HAS FAILED TO DISCLOSE HIS TRUE INCOME/BOO K PROFIT. 2. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSIN G OFFICER BE RESTORED TO THE ABOVE EXTENT. THE APPELLANT CRAVES , TO LEAVE, TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND WH ICH MAY BE NECESSARY. ITA NO. 2742/AHD/2017:- 1. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACT S IN RESTRICTING THE DISALLOWANCE U/S. 14AOFO THE ACT OF RS. 1M49,43,770/- TO RS. 57,86,485/-. 2. THAT THE LD. CIT(A) HAS ERRED IN HOLDING THAT AD DITION OF RS. 1,49,43,770/- IS NOT TO BE MADE WHILE COMPUTING THE BOOK PROFIT U/S. 115JB OF THE ACT. 3. THE APPELLANT CRAVES, TO LEAVE, TO AMEND AND/OR TO ALTER ANY GROUND OR ADD A NEW GROUND WHICH MAY BE NECESSA RY. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFEC T ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EX CEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIR ED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON ITA NOS. 2234/AHD/2016 & 2742/AHD/2017 A.YS. 2013-14 & 2014-15 3 SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 11/09/2019 TANMAY TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 23.08.2019 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 23.08.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 11.09.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 23.08.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 11.09.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 11.09.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER THIS ORDER PRONOUNCED IN OPEN COURT ON 11/ 09/2019