The ACIT, Circle-5, Ahmedabad V. M/s. Par Polypack India Ltd., Ahmedabad

ITA 2434/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0238 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-10-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 11-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD .. , , BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.2434/AHD/2013 ( / ASSESSMENT YEAR : 2007-08) ACIT, CIR-5 AHMEDABAD / VS. M/S. PAR POLYPACK INDIA LTD. 30/31/32, CHANGODAR INDL. ESTATE SARKHEJ BAVLA HIGHWAY CHANGODAR,AHMEDABAD-382 213 $ ./ ./ PAN/GIR NO. : AABCP 6079 N ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : SHRI MUDIT NAGPAL, SR.DR ($'*) / RESPONDENT BY : -NONE- + ,*-. / DATE OF HEARING 26/10/2016 /012*-. / DATE OF PRONOUNCEMENT 26/10/2016 / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-XI, AHMEDABAD D ATED 08/07/2013 FOR THE ASSESSMENT YEAR (AY) 2007-08. THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- 1) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING LEVYING ON PENALTY OF RS.5,81,455/- U/S.271(1)(C) OF THE I.T. ACT IN RESPECT OF ITA NO. 2434/AH D/2013 ACIT VS. M/S.PAR POLYPACK INDIA LTD. ASST.YEAR 2007-08 - 2 - UNDISCLOSED INCOME OF RS.17,27,436/- ON SHARE TRANS ACTIONS DETECTED DURING THE COURSE OF SURVEY PROCEEDINGS. 2. ON THE DATE OF HEARING, NONE APPEARED ON BEHALF OF ASSESSEE NOR ANY ADJOURNMENT APPLICATION WAS FILED ON THEIR BEHALF. WE THEREFORE PROCEED TO DECIDE THE APPEAL EX-PARTE QUA THE ASSESSEE. 3. THE LD. D.R. FAIRLY ADMITTED THAT THE TAX EF FECT ON THE IMPUGNED ADDITIONS IS LESS THAN THE LIMIT PRESCRIBED BY THE CBDT CIRCULAR OF 10.12.2015 BEARING NO. 21 OF 2015. 4. WE HAVE HEARD THE LD.SR.DR AND PERUSED THE MAT ERIALS AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED B Y THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10/12/2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF G IVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFEC T, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRES ENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MAT ERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESEN T APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ITA NO. 2434/AH D/2013 ACIT VS. M/S.PAR POLYPACK INDIA LTD. ASST.YEAR 2007-08 - 3 - ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, W E DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTAT ION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT C IRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 26/10/2016 SD/- SD/- .. ( ) () ( N.K. BILLAIYA ) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 26 / 10 /2016 6...,.../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 78- + 9- / CONCERNED CIT 4. + 9- ( ) / THE CIT(A)-XI, AHMEDABAD 5. :;<-78 , .782 , / DR, ITAT, AHMEDABAD 6. <=>, / GUARD FILE. / BY ORDER, (:-- //TRUE COPY // / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD ITA NO. 2434/AH D/2013 ACIT VS. M/S.PAR POLYPACK INDIA LTD. ASST.YEAR 2007-08 - 4 - 1. DATE OF DICTATION .. 26.10.16 (COVERED CASE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 26.10.16 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.27.10.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 27.10.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER