The ITO, Ward-3(3)(7), Ahmedabad V. Shri Kantibhai Revabhai Prajapati , Ahmedabad

ITA 2493/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9358 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 13-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DIVYA AGARWALA
• Keywords: Tax effect
• Section: 201; 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.2493/AHD/2017 / ASSTT.YEAR : 2011-12 ITO, WARD - 3(3)(7) AHMEDABAD. VS. SHRI KANTIBHAI R PRAJAPATI 617/618, MADHAV BUNGALOWS OPP: PRANAMI BUNGALOWS PRANAMINAGAR VASTRA AHMEDABAD 382 418. PAN : AGAPP 3413 E ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI MUDIT NAGPAL, SR.DR ASSESSEE BY : SHRI DIVYA AGARWALA, AR / DATE OF HEARING : 30/09/2019 ! / DATE OF PRONOUNCEMENT: 01/10/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-7, AHMEDABAD DATED 30.8.2017 PASSED FOR THE ASSESSMENT YEAR 2011-12. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD .CIT(A) IN DELETING THE PENALTY UNDER SECTION 271AAA OF THE AC T OF RS.18,47,839/- 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE OUTSET SU BMITTED THAT QUANTUM OF THE DISPUTED PENALTY IS LESS THAN RS.50 LAKHS. HE SUBMITTED THAT BY VIRTUE OF RECENT CBDT CIRCULAR NO.17 OF 201 9 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL B EFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRU CTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APP EAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. PER CONT RA, THE LD.DR DID NOT ITA NO.2493/AHD/2017 2 DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCULAR A ND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). WE HAVE NOTED THAT THE QUANTUM OF PENALTY DISPUTED BY THE REVENUE IS LESS THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW TH E ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCO ME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE A PPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 1 ST OCTOBER, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER