The ITO, Ward-1(2)(3), Baroda V. M/s. Satsang Developers, Baroda

ITA 2263/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4651 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 16-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3); 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I MAHAVIR PRASAD , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE IT O , WARD - 1(2 ) (3) , VADODARA (APPELLANT) VS M/S. SATSANG DEVELOPERS, B - 13, C/O. SHRI NIRMALBHAI R. THAKKAR, 108, AJIT SOCIETY, DINESH MILL ROAD, AKOTA VADODARA - 390007 PAN: ABCFS2815C (RESPONDENT) REVENUE BY : S H RI L. P. JAIN , SR. D . R. ASSESSEE BY: WRITTEN SUBMISSION DATE OF HEARING : 14 - 02 - 2 020 DATE OF PRONOUNCEMENT : 18 - 02 - 2 020 / ORDER P ER BENCH : - THESE TWO APPEALS FILED BY REVENUE FOR A. Y. 2006 - 07 & 2007 - 08 , ARI SE FROM ORDER OF THE CIT(A) - 4, VADODARA DATED 21 - 08 - 2 018 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO S . 2263 & 2264 / A HD /20 18 A SS ESSMENT YEAR 2006 - 07 & 2007 - 08 I.T.A NO S . 2263 & 2264 /AHD/20 18 A.Y. 2006 - 07 & 2007 - 08 PAGE NO IT O VS. M/S. SATSANG DEVELOPERS 2 2 . AT THE OUTSET, AFTER GOING THROUGH THE GROUNDS OF 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 S FILED BY THE REVENUE IN VIEW OF RECENT CBDT CIRCULAR NO. 17/2019 DATED 08 - 08 - 2019 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENUE WH ERE THE TAX EFFECT IS BELOW RS.5 0 LAKHS, THE LD. DR 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 BOT H THE APPEAL S O F THE REVENUE ARE PRESENTED ON 1 6 .11.2018 . ON 8.8.2019 THE CBDT HAS ISSUED INSTR UCTIONS BEARING NO. 17 OF 2019 UNDER FILE N O. F. 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.5 0 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE O N 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 AP PEAL IS FILED, IS LESS THAN RS.5 0 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 THE PRESE NT APPEAL S OF THE REVENUE DESERVE TO BE DISMISSED. THEY ARE 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 AMBIT 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 I.T.A NO S . 2263 & 2264 /AHD/20 18 A.Y. 2006 - 07 & 2007 - 08 PAGE NO IT O VS. M/S. SATSANG DEVELOPERS 3 WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, BOTH THE APPEAL S OF THE R EVENUE 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 18 - 02 - 20 20 SD/ - SD/ - ( MAHAVIR PRASAD ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 18 /02 /2020 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,