The Dy. Commissioner of Income Tax, Circle-2(3), Surat V. M/s. Jivraj Tea Company, Surat

ITA 2342/AHD/2016

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 2282 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 12-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: MEHUL R SHAH
• Keywords: Audit objection; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT , , BEFORE SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER . / ITA NO.2342AHD/2016/SRT / ASSESSMENT YEAR: 2009-10 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(3), SURAT 395 001. VS. JIVRAJ TEA COMPANY, R/258, JIVRAJ CHAMBER, RUWALA TEKRA, BHAGAL, SURAT 395 003. [PAN: AACFJ 2236 R] ( / APPELLANT) ( /RESPONDENT) / ASSESSEE BY : SHRI MEHUL R.SHAH CA /REVENUE BY : SHRI R.P.RASTOGI SR.DR /DATE OF HEARING : 02-08-2018 / DATE OF PRONOUNCEMENT : 02-08-2018 / ORDER PER BENCH: THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-I, SURAT (CIT(A) FOR SHORT) DATED 29.06.2016 FOR THE ASSESSMENT YEAR 2009-10. 2 ITA NO.2342/AHD/2016/SRT (A.Y: 2009-10) JIVRAJ TEA COMPANY 2. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL AVAILABLE ON RECORD AND FIND THAT TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS. 20 LAKHS. THE LD. DR ALSO DID NOT DISPUTE THIS FACT. WE FIND THAT THE CBDT VIDE CIRCULAR NO.3/2018 DATED 11.07.2018 [F.NO.279/MISC.142/2007-ITJ (PT)] HAS REVISED THE MONETARY LIMIT FOR FILING OF APPEAL BEFORE TRIBUNAL FIXING THE TAX EFFECT LIMIT AT RS.20 LACS. THE SAID CIRCULAR SUPERSEDES THE EARLIER CIRCULAR(S) ISSUED ON THE SUBJECT OF TAX EFFECT AND APPLIES TO ALL PENDING APPEAL RETROSPECTIVELY. THE BOARD HAS PROVIDED EXCEPTIONS PROVIDED UNDER PARA 10 OF THE CIRCULAR WHEREIN IT HAS BEEN PROVIDED THAT THE ISSUES RELATED IS TO BE CONTESTED (A) WHERE THE CONSTITUTION VALIDITY OF THE PROVISION OF THE ACT OR (B) RULE IS UNDER CHALLENGE OR (C) WHERE BOARD`S ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR WHERE REVENUE AUDIT OBJECTIONS HAS BEEN ACCEPTED BY THE DEPARTMENT OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. 3. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXCEPTIONS CLAUSE AND THE TAX DEMAND IS LESS THAN RS.20 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AS PER RECENT CIRCULAR (SUPRA) AND HENCE THE SAME IS 3 ITA NO.2342/AHD/2016/SRT (A.Y: 2009-10) JIVRAJ TEA COMPANY DISMISSED. HOWEVER, WE MAY MAKE IT CLEAR THAT THE REVENUE IS AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALLING THIS ORDER, IF IT COMES TO THE NOTICE OF THE ASSESSING OFFICER THAT THE TAX EFFECT IS MORE THAN THE MONETARY LIMIT PRESCRIBED UNDER CIRCULAR OR REVENUE`S CASE FALLS WITHIN THE AMBIT OF THE EXCEPTIONS PROVIDED IN THE CIRCULAR. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 ND AUGUST, 2018. / SURAT ; DATED : 2 ND AUGUST, 2018./ S.GANGADHARA RAO, SR.PS / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT ; 3. ( ) / THE CIT(A)-1, SURAT; 4. PRL. CIT, SURAT; 5. , , / DR, ITAT, SURAT; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / ASSISTANT REGISTRAR , / ITAT, SURAT SD/ - SD/ - ( ) ( O.P.MEENA ) / ACCOUNTANT MEMBER ( ) (C.M.GARG) /JUDICIAL MEMBER