The Dy. Commr. Of Income Tax, Cir.-1, JAMNAGAR V. M/s Meena Agency Ltd., JAMNAGAR

ITA 245/RJT/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2469 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 14-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT SINGH
• Assessee Lawyers: DM RINDANI
• Keywords: Rectification of order; Tax effect; Set aside
• Section: 143(3); 13; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI WASEEM AHMED , ACCOUNTANT MEMBER AND MS. MADHUMITA ROY , JUDICIAL MEMBER ./ ITA NO. 245 /RJT/201 6 / ASS ESSMENT YEAR: 2012 - 1 3 DY. COMMISSIONER OF INCOME TAX CIRCLE - 1, JAMNAGAR VS M/S. MEENA AGENCY LTD., KHUSBOOWADI, NR. GURUDWARA, JAMNAGAR PAN NO. AAB CM4 325 Q / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI RANJIT SINGH, CIT DR ASSESSEE BY : SHRI D. M. RINDANI , A R / DATE OF HEARING : 24 / 02 /20 20 / DATE OF PRONOUNCEMENT : 28 / 02 / 20 20 PER BENCH : THE INSTANT APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 13 . 04 .201 6 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS), JAMNAGAR ARISING OUT OF THE ORDER DATED 2 4 . 03 .201 5 PASSED BY THE AC IT, CIRCLE 3 , JAMNAGAR UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED AS TO THE ACT ) FOR THE ASSESSMENT YEAR (A.Y.) 20 12 - 13 . 2. THE GROUND S OF AP PEAL RAISED BY THE REVENUE READ ARE AS UNDER: - 1. THE LD. CIT(A) ERRED ON FACTS AND IN LAW IN ALLOWING APPEAL OF THE ASSESSEE AND DIRECTING THE AO TO PASS RECTIFICATION ORDER U/S. 154. 2. THE LD. CIT(A) ERRED ON FACTS AND IN LAW IN NOT APPRECIATING THE FACT THAT DEPARTMENT HAS ASSESSED WHAT THE ASSESSEE ITSELF HAS DISCLOSED AND AS SUCH, THERE WAS NO MISTAKE APPARENT FROM RECORDS FALLING WITHIN THE PURVIEW OF SECTION 154 OF THE ACT AND THAT THE ASSESSEE CANNOT BE ITA NO . 245 / RJT /20 16 DCIT VS. M/S. MEENA AGENCY LTD. AY 2012 - 13 - 2 - ALLOWED TO MAKE FRESH CLAIMS UNDER THE GUISE OF RECTIFICATION OF APPARENT MISTAKE. 3. ON THE BASIS OF THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4. THAT THE REVENUE CRAVES LEAVES TO ADD, AMEND, ALTER OR WITHDRAW ANY GROUND OF APPEAL. 5. IT IS THEREFORE PRAYED THAT THE ORDER OF THE CIT(A), JAMNAGAR MAY KINDLY BE SET ASIDE AND THAT OF ASSESSING OFFICER BE RESTORED. 3. AT T HE TIME OF HEARING OF THE APPEAL , IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFO RESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFE CT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED THE APPLICABILITY OF THE CBDT CIRCULAR N O. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, TH E APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 28 TH FEBRUARY , 2020 AT RAJKOT . S D/ - SD/ - ( WASEEM AHMED ) ACCOUNTANT MEMBER ( MADHUMITA ROY ) JUDICIAL MEM BER RAJKOT ; DATED, 28 / 02 /20 20 TANMAY DATTA , SR.PS TRUE COPY ITA NO . 245 / RJT /20 16 DCIT VS. M/S. MEENA AGENCY LTD. AY 2012 - 13 - 3 - / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, RAJKOT 6. / GUARD FILE . / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, R AJKOT 1. DATE OF DICTATION - 24 / 02 /20 20 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 24 /02 /20 20 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. - 26 /02/2020 4. DATE ON WHICH THE FAIR ORDER IS PL ACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT /02/2020 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 28 /02/2020 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR S IGNATURE ON THE ORDER .. 8. DATE OF DESPATCH OF THE ORDER