The DCIT, Circle-4(1)(1), Ahmedabad V. Shri Tarun Santramdas Verma, Ahmedabad

ITA 228/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5606 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 03-10-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 27-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T SHANKAR
• Keywords: Tax effect
• Section: 144

Judgement Text

ITA NO. 228, 229, 230, 232/AHD/2017 AND CO 49 AHD 2017(IN ITA NO.230/AHD/2017) ASSESSEES - TARUN, GAURAV PRITI& MRUNAL VERMA ASSESSMENT YEARS : 2012-13 & 2008-09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH D, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND MANISH BO RAD, ACCOUNTANT MEMBER] ITA NO. 228/AHD/2017 ASSESSMENT YEAR: 2012-13 DY. COMMISSIONER OF INCOME-TAX CIRCLE-4(1)(1)), AHMEDABAD .....APPELLANT VS TARUN SANTRAMDAS VERMA ..........RESPONDE NT 307, SARTHIK SQUARE, NR. GNFC TOWER, S.G. HIGHWAY, AHMEDABAD - 380054 [PAN : AAIPV 6427 C] ITA NO. 229/AHD/2017 ASSESSMENT YEAR: 2012-13 DY. COMMISSIONER OF INCOME-TAX CIRCLE-4(1)(1)), AHMEDABAD .....APPELLANT VS GAURAV SANTRAMDAS VERMA ..........RESPOND ENT 307, SARTHIK SQUARE, NR. GNFC TOWER, S.G. HIGHWAY, AHMEDABAD - 380054 [PAN : ADEPV 3361 L] ITA NO. 230/AHD/2017 & CO NO.49/AHD/2017 ASSESSMENT YEAR: 2008-09 DY. COMMISSIONER OF INCOME-TAX CIRCLE-4(1)(1)), AHMEDABAD .....APPELLANT VS PRITI TARUN VERMA ..........RESPONDENT 307-308, SARTHIK SQUARE, NR. GNFC TOWER, & CROSS-OBJECTOR S.G. HIGHWAY, AHMEDABAD - 380054 [PAN : ABSPV 3860 C] ITA NO. 232/AHD/2017 ASSESSMENT YEAR: 2012-13 DY. COMMISSIONER OF INCOME-TAX CIRCLE-4(1)(1)), AHMEDABAD .....APPELLANT VS MRUNAL SANTRAMDAS VERMA ..........RESPOND ENT 307, SARTHIK SQUARE, NR. GNFC TOWER, S.G. HIGHWAY, AHMEDABAD - 380054 [PAN : AEPTPV 0713 J] ITA NO. 228, 229, 230, 232/AHD/2017 AND CO 49 AHD 2017(IN ITA NO.230/AHD/2017) ASSESSEES - TARUN, GAURAV PRITI& MRUNAL VERMA ASSESSMENT YEARS : 2012-13 & 2008-09 PAGE 2 OF 3 APPEARANCES BY T. SHANKAR, FOR THE REVENUE URVASHI SHODHAN, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : OCTOBER 03, 2019 DATE OF PRONOUNCEMENT : OCTOBER 03, 2019 O R D E R PER JUSTICE P P BHATT, PRESIDENT : 1. THESE FOUR APPEALS BY THE REVENUE, IN RESPECT OF DIFFERENT ASSESSEES, ARE DIRECTED AGAINST THE SEPARATE ORDERS PASSED BY THE LEARNED CIT(A)-3, AHMEDABAD IN THE MATTER OF ASSESSMENT UNDER SECTION 144 OF THE I NCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEARS 2012-13 (EXCEPT FOR ITA NO. 230/AH D/2017 WHEREIN THE ASSESSMENT YEAR IS 2008-09). THE CROSS-OBJECTION BE ARING CO NO.49/AHD/2017 IS PRESENTED AT THE INSTANCE OF ASSESSEE IN APPEAL OF THE REVENUE, I.E. ITA NO. 230/AHD/2017 FOR ASSESSMENT YEAR 2008-09. 2. WHEN THESE APPEALS WERE CALLED OUT FOR HEARING, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEALS OF THE REVENUE NEED TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCUL AR NO. 17 OF 2019 DATED 08.08.2019 WHEREBY THE MONETARY LIMITS FOR FILING T HE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WAS ENHANCED FROM RS.20 LAKHS TO RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THE LEARNED C OUNSEL FOR THE ASSESSEE ALSO PLACED ON RECORD A TABULAR SHEET EXHIBITING THE WOR KING OF TAX EFFECT INVOLVED IN EACH APPEAL. THEREFORE, THE PRESENT APPEALS OF THE REVEN UE ARE LIABLE TO BE DISMISSED AS NON-MAINTAINABLE AS HELD BY THIS TRIBUNAL IN THE CA SE OF ITO VS. DINESH MADHAVLAL PATEL IN ITA NO.1398/AHD/2004 FOR AY 1998-99 VIDE A CONSOLIDATED ORDER DATED 14.08.2019. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THESE APPEALS OF THE REVENUE IS LESS TH AN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLIC ABLE LEGAL POSITION. AS LEARNED COUNSEL RIGHTLY CONTENDS, THESE APPEALS OF THE REVE NUE ARE NO LONGER MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DAT ED 08.08.2019. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STANDS ENHANCED TO RS.50 LAKHS. THIS CONCESSION GR ANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTIVE IN EFFECT INAS MUCH AS IT APPLIES TO ALL PENDING APPEALS AS WELL. IN VIEW OF THE ABOVE POSITION, TH E APPEALS FILED BY THE REVENUE ARE NO LONGER MAINTAINABLE AND MUST BE DISMISSED AS SUC H. ITA NO. 228, 229, 230, 232/AHD/2017 AND CO 49 AHD 2017(IN ITA NO.230/AHD/2017) ASSESSEES - TARUN, GAURAV PRITI& MRUNAL VERMA ASSESSMENT YEARS : 2012-13 & 2008-09 PAGE 3 OF 3 5. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFFECT OF MORE TH AN RS.50 LAKHS IS BEING INVOLVED IN ANY OF THE APPEAL OR THE APPEAL FALLS WITHIN THE EX EMPTION CLAUSE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERTY TO FILE MISCELL ANEOUS APPLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLICATION SHOULD BE FILED WIT HIN TIME LIMIT PRESCRIBED IN THE ACT. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED DUE TO LOW TAX EFFECT. 7. COMING TO THE CROSS OBJECTION FILED BY THE ASSES SEE VIDE CO NO.49/AHD/2017 IN ITA NO.230/AHD/2017, AS THE CROSS OBJECTION FILE D BY THE ASSESSEE MERELY SUPPORTS THE ORDER OF THE LEARNED CIT(A), THE CROSS OBJECTION IS THUS DISMISSED AS INFRUCTUOUS. 8. IN THE RESULT, APPEALS FILED BY THE REVENUE AS W ELL AS THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 3 RD OCTOBER, 2019. SD/- SD/- MANISH BORAD JUSTICE P P BHATT (ACCOUNTANT MEMBER) (PRESIDEN T) AHMEDABAD, DATED THE 3 RD DAY OF OCTOBER, 2019 BT* COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ...LOW TAX EFFECT...03.10.201 9.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 03.10.2019....... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: .03.10.2019........ 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: 03.10.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .... 03.10.2019.. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......