The DCIT, Circle-14, Ahmedabad V. Shri Bharat Jivanlal Patel, Ahmedabad

ITA 2475/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0810 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 09-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 21-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.2475/AHD/2013 / ASSTT. YEAR: 2009-2010 DCIT, CIR.14 AHMEDABAD. VS SHRI BHARAT JIVANLAL PATEL 5/6, MANCIHANDRA SOCIETY SURDHARA CIRCLE THALTEJ, AHMEDABAD. ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI SATISH SOLANKI, SR.DR ASSESSEE BY : SHRI S.N. DIVETIA, AR / DATE OF HEARING : 09/08/2016 / DATE OF PRONOUNCEMENT: 11/08/2016 $%/ O R D E R REVENUE IS IN APPEAL AGAINST THE ORDER OF THE LD.CI T(A)-14, AHMEDBAD DATED 1.8.2013 FOR THE ASTT.YEAR 2009-10. 2. ONLY GRIEVANCE OF THE REVENUE IN THIS APPEAL IS AGAINST DELETION OF PROTECTIVE ADDITION OF RS.29,92,000/- UNDER SECTION 2(22)(E) OF THE ACT. 3. THE LD.COUNSEL FOR THE ASSESSEE, AT THE OUTSET, CONTENDED THAT THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE IN VIEW OF RECENT CBDT CIRCULAR NO.21/2015 DATED 10.12.2015 RESTRICTING FILING OF A PPEAL BY THE REVENUE BEFORE THE TRIBUNAL, WHERE TAX EFFECT IS BELOW RS.1 0 LAKHS, AND THAT THE TAX EFFECT ON THE IMPUGNED DEDUCTION IS MUCH BELOW THE PRESCRIBED LIMIT. THE LD.DR, COULD NOT CONTROVERT TO THIS CONTENTIONS OF THE ASSESSEE AND DISPUTE APPLICATION OF THE INSTRUCTION OF THE CBDT PROHIBIT ING FILING OF THE APPEAL BY THE REVENUE, WHERE TAX EFFECT IS BELOW RS.10 LAKHS. ITA NO.2475/AHD/2013 2 4. I FIND THAT THIS APPEAL WAS PRESENTED ON 21.10.2 013. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PR OHIBITING 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.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRU CTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, THE ADD ITION CONTESTED BY THE REVENUE IN THE PRESENT APPEAL IS RS.29,92,000/- AND TAX EFFECT ON AMOUNT IS LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPE AL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INST RUCTIONS. FURTHER, THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVID ED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING THE APPE AL, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-VERIFI CATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR I T FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DE PARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 11 TH AUGUST, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 11/08/2016