ITO, Ward-5(3)(1), Ahmedabad V. Kinnari Pravinchandra Shah, Ahmedabad

ITA 2298/AHD/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5598 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 26-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P. JAIN
• Keywords: Tax effect; Set aside
• Section: 143(3)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD (THROUGH VIRTUAL COURT) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 2298/AHD/2018 ( ASSESSMENT YEAR : 2015-16) I.T.O. WARD-5(3)(1), ROOM NO. 128, 1 ST FLOOR, NARAYAN CHAMBERS, ASHRAM ROAD, AHMEDABAD 380009 / VS. KINNARI PRAVINCHANDRA SHAH 1-2, GROUND FLOOR, SHIVAL COMPLEX, B/S. HDFC BANK, NR. SUVIDHA SHOPPING CENTRE, PALDI, AHMEDABAD 380007 ./ ./ PAN/GIR NO. : BJGPS8802J ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI LALIT P. JAIN, SR.D.R. / RESPONDENT BY : NONE DATE OF HEARING 01/10/2020 !'# / DATE OF PRONOUNCEMENT 05/10/2020 / 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 COMMISSIONER OF IN COME TAX (APPEALS)-5, AHMEDABAD (CIT(A) IN SHORT), DATED 1 1.09.2018 ITA NO. 2298/AHD/18 [ITO VS. KINNARI PRAVINCHANDRA SHAH] A.Y. 2015-16 - 2 - ARISING IN THE ASSESSMENT ORDER DATED 22.12.2017 PA SSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING AY. 2015-16. 2. THE SUBSTANTIVE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- '(1) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.51,90,000/- MADE ON ACCOUNT OF DISALLOWANCE OF E XEMPTION CLAIMED U/S 54. (2) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.25,00,000/- MADE ON ACCOUNT OF DISALLOWANCE OF E XEMPTION CLAIMED U/S 54EC. (3) ON THE FACTS AND CIRCUMSTANCES, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE AO. (4) IT IS THEREFORE PRAYED THAT THE ORDER OF THE LD . CIT(A) MAY BE SET ASIDE AND THAT OF THE ORDER OF THE ASSESSING OFFICER BE R ESTORED TO THE ABOVE EXTENT. (5) THIS APPEAL IS FILED AS TAX EFFECT IN THE CASE IS RS.26,04,756/- WHICH IS ABOVE THE MONETARY LIMITS SPECIFIED IN THE BOARDS CIRCULAR NO 3/2018 DATED 11.07.2018. 3. AT THE TIME OF HEARING, IT IS TRANSPIRED THAT TH E APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCU LAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHO LDS PERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 279/MISC/M-93/2018-ITJ DT. 2 0/08/2019 HAS OBSERVED THAT CIRCULAR NO.17/2019 DATED 08/08/2 019 RELATING TO ENHANCEMENT OF MONETARY LIMITS IS ALSO APPLICABL E TO ALL PENDING APPEALS. AS PER AFORESAID CIRCULAR READ WIT H INSTRUCTION, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFF ECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW R EVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT O N THE DISPUTED ITA NO. 2298/AHD/18 [ITO VS. KINNARI PRAVINCHANDRA SHAH] A.Y. 2015-16 - 3 - 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 RES TORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 05/10/2020 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 ON 05/10/2020