The ITO, Ward-6(1)(1), Ahmedabad V. Shri Mahesh Niranjan Vyas, Ahmedabad

ITA 2342/AHD/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6168 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 03-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: A L THAKKAR
• Keywords: Retrospective amendment; Tax effect
• Section: 153A; 268A; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (VIRTUAL COURT) BEFORE: SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE ITO, WARD-6(1)(1), AHMEDABAD (APPELLANT) VS SHRI MAHESH NIRANJAN VYAS, A-1, FIRST FLOOR, NATRAJ ESTATE, B/S. NAGARWEL HANUMAN, AMARAIWADI, AHMEDABAD-380026 PAN: ABUPV2611H (RESPONDENT) REVENUE BY: SHRI L.P. JAIN, SR. D.R. ASSESSEE BY: SHRI A.L. THAKKAR, A.R . DATE OF HEARING : 14-09-2020 DATE OF PRONOUNCEMENT : 15-09-2020 /ORDER PER BENCH:- THESE TWO APPEALS FILED BY REVENUE FOR A.Y. 2008-0 9 & 2009-10, ARISE FROM ORDER OF THE CIT(A)-11, AHMEDABAD DATED 27-09 -2018, IN PROCEEDINGS UNDER SECTION 144 R.W.S. 153A OF THE INCOME TAX ACT , 1961; IN SHORT THE ACT. ITA NOS. 2342 & 2343/AHD/2018 ASSESSMENT YEAR 2008-09 & 2009-10 I.T.A NOS. 2342 & 2343/AHD/2018 A.Y. 2008-09 & 2009-10 PAGE NO ITO VS. SHRI MAHESH NIRANJAN VYAS 2 3. AT THE OUTSET, AFTER GOING THROUGH THE GROUNDS O F APPEALS AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WA S RAISED BY THE BENCH AS TO APPLICABILITY AND MAINTAINABILITY OF THE APPEALS FI LED 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 WHERE THE TAX EFFECT IS BELOW RS.50 LAKHS, THE LD. DR DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE I S LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WITH LAW. 4. WE FIND THAT BOTH THE APPEALS OF THE REVENUE ARE PRESENTED ON 03.12.2018. ON 8.8.2019 THE CBDT HAS ISSUED INSTRUCTIONS BEARIN G NO. 17 OF 2019 UNDER FILE NO. F. NO. F. NO. 279/MISC. 142/2007-ITJ(PT.) PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUN AL 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.50 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, TAX EFFECT ON THE TOTAL INCOME ASSE SSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN RED UCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH APPEAL IS FILED, IS LESS THAN RS.50 LAKHS. FURTHER, THE CASE OF THE REVENUE DOES NOT FA LL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW TH E ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, W E ARE OF THE VIEW THAT THE PRESENT APPEALS OF THE REVENUE DESERVE TO BE DISMIS SED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MORE OR REVENUES 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 NOS. 2342 & 2343/AHD/2018 A.Y. 2008-09 & 2009-10 PAGE NO ITO VS. SHRI MAHESH NIRANJAN VYAS 3 WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN V IEW OF THE ABOVE, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15-09-2020 SD/- SD/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 15/09/2020 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,