The ACIT, Circle-1(2), Vadodara V. M/s. Effluent Channel Project Ltd., Vadodara

ITA 2266/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2431 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 31-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M J SHAH
• Keywords: Tax effect

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 2266/AHD/2015 ( ASSESSMENT YEAR : 2009-10) THE ACIT, CIRCLE.1(1)(2), 1 ST FLOOR, ROOM NO.103, AAYKAR BHAVAN, RACE COURSE CIRCLE, VADODARA, GUJARAT - 390007 / VS. M/S. EFFLUENT CHANNEL PROJECT LTD., 4 TH FLOOR, COMMERCE CENTRE, SAYAJIGUNJ, VADODARA - 390005 ./ ./ PAN/GIR NO. : AAACE8486B ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MUDIT NAGPAL, SR. D.R. / RESPONDENT BY : SHRI M. J. SHAH, A.R. DATE OF HEARING 14/08/2018 !'# / DATE OF PRONOUNCEMENT 06/09/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-1, VADODARA (CIT(A) IN SHORT), DATED 22.05.2015 ARISING IN THE PENALTY ORD ER DATED 28.03.2014 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. ITA NO.2266/AHD/15 [ACIT VS. M/S. EFFLUENT CHANNEL PROJECT LTD.] A.Y. 2009-10 - 2 - 271(1)(C) OF THE INCOME TAX ACT, 1961 (THE ACT) CON CERNING ASSESSMENT YEAR 2009-10. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, WHETHER THE LD. CIT(A) WAS CORRECT BY DELETING THE PENALTY WHICH WA S LEVIED ON ADDITIONS CONFIRMED BY HIMSELF ? 2. THE LD. CIT(A) HAS FAILED TO APPRECIATE THE FACT THAT THE ASSESSEE HAD FURNISHED INACCURATE PARTICULARS OF INCOME FOR WHIC H PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 IS LEVIABLE AND THE ASS ESSEE HAS DELIBERATELY TRIED TO PAY LESS TAX BY FURNISHING INACCURATE PART ICULARS OF INCOME, THEREBY MAKING IT A FIT CASE FOR IMPOSITION OF PENALTY U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 ? 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE I S HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING 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.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, 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 NO.2266/AHD/15 [ACIT VS. M/S. EFFLUENT CHANNEL PROJECT LTD.] A.Y. 2009-10 - 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/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 06/09/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 06/09/201 8