The ACIT, Circle-2, Surat V. Shri Rajesh K. Jain, Surat

ITA 2453/AHD/2014

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 1946 (ITAT-SURAT)
• Duration Of Justice: 4 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 04-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITHA NAIR
• Keywords: Audit objection; Tax effect

Judgement Text

PAGE 1 OF 2 , , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT . . , . . , BEFORE SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER . . ./ I.T.A NO.2453/AHD/2014: / ASSESSMENT YEAR:2011-12 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 2 SURAT V S . SHRI RAJESH K JAIN , BLOCK NO. A/24, RO NO. 14, UDHNA UDYOG NAGAR , U. M. ROAD SURAT 395008 PAN: ABBPJ5375K APPELLANT /RESPONDENT /ASSESSEE BY NONE /REVENUE BY MS. SMITHA NAIR, SR. D.R. / DATE OF HEARING: 16.10.2018 /PRONOUNCEMENT ON : 16.10.2018 /O R D E R PER O. P. MEENA, ACCOUTANT MEMBER: 1. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-II, SURAT DATED 10.06.20145 PERTAINING TO ASSESSMENT YEAR 2011-12. 2. WE HAVE HEARD THE PARTIES 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 PAGE 2 OF 2 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 RULE IS UNDER CHALLENGE OR (B) WHERE BOARD`S ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTIONS HAS BEEN ACCEPTED BY THE DEPARTMENT OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. AND BY AMENDMENT DTD. 20.08.2018 FOLLOWING CLAUSES ADDED OR (E) WHERE ADDITION IS BASED ON INFORMATION FROM EXTERNAL SOURCES LIKE-CBI/ED/DRI/SFIO/GST-DGGI OR (F) WHERE PROSECUTION FILED BY DEPARTMENT IS PENDING IN COURT. 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 DISMISSED. HOWEVER, WE MAY MAKE IT CLEAR THAT THE REVENUE IS AT LIBERTY TO APPROACH TO THIS TRIBUNAL FOR RECALLING THIS ORDER, IF IT IS COMES TO THE NOTICE OF THE AO THAT THE TAX EFFECT IS MORE THAN THE MONETARY LIMIT PROVIDED UNDER CIRCULAR OR REVENUE`S CASE IS FALL WITHIN AMBIT OF THE EXCEPTIONS PROVIDED IN THE SAID CIRCULAR. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. 5. THE ORDER PRONOUNCED IN THE OPEN COURT ON 16.10.2018. SD/- SD/- ( . . ) /(C.M. GARG) ( . . ) /(O.P.MEENA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER / SURAT: / DATED : 16 OCTOBER 2018 COPY OF ORDER FORWARDED TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/ GUARD FILE OF TRIBUNAL. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT