The Income Tax Officer, Ward-1(2) (5), RAJKOT-GUJARAT V. Umiya Credit Co. Op. Society Ltd., RAJKOT-GUJARAT

ITA 25/RJT/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4242 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 31-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DM RINDANI
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT [CONDUCTED THROUGH E COURT AT AHMEDABAD] BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA.NO.25/RJT/2017 / ASSTT. YEAR: 2012-2013 ITO, WARD - 1(2)(5) RAJKOT. VS UMIYA CREDIT CO - OP. SOCIETY LTD. 125, HEERA PANNA COMPLEX DR.YAGNIK ROAD RAJKOT. ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI PRAVEEN VERMA, SR.DR ASSESSEE BY : SHRI D.M. RINDANI, AR / DATE OF HEARING : 24/10/2018 / DATE OF PRONOUNCEMENT: 1/11/2018 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-I RAJKOT DATED 29.11.2016 PASSED FOR THE ASSTT.YEAR 2 012-13 VIDE WHICH THE LD.CIT(A) HAS ALLOWED DEDUCTION OF RS.37,62,574/- U NDER SECTION 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961. 2. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE H AS RAISED A PRELIMINARY OBJECTION AS TO THE MAINTAINABILITY OF REVENUES AP PEAL BEFORE THE TRIBUNAL, IN VIEW OF RECENT CBDT DIRECTION RESTRICTING THE REVEN UE NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.20 LAKHS. THEREFORE, SINCE QUANTUM INVOLVED IN THE PRESENT APPEAL IS OF RS.37, 62,574/- AND TAX EFFECT ON WOULD BE LESS THAN RS.20 LAKHS, THE APPEAL OF THE R EVENUE IS LIABLE TO BE ITA NO.25/RJT/2017 2 DISMISSED IN LIMINE . TO THIS SUBMISSION OF THE LD.COUNSEL FOR THE AS SESSEE, NO RESISTANCE CAME FROM THE LD.DR, HOWEVER, LEFT THE I SSUE TO THE BENCH TO BE DECIDED IN ACCORDANCE WITH. 3. ON DUE CONSIDERATION OF THE RECORD AND SUBMISSIO NS OF BOTH THE PARTIES, WE FIND THAT APPEAL OF THE REVENUE IS PRES ENTED ON 31.1.2017. ON 8.1.2016 THE CBDT HAS ISSUED A CIRCULAR NO.3/201 82018 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF APPEAL T O THE TRIBUNAL AGAINST ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.20 LAKHS. THE INSTRUCTI ONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THERE BY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRE SENT CASE, THE TAX EFFECT ON THE DISPUTED ADDITION DOES NOT EXCEED RS.20 LAKH S. THE TAX EFFECT AS PER CBDT CIRCULAR IS TAX ON THE TOTAL INCOME ASS ESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCO ME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINS T WHICH APPEAL IS FILED, WOULD BE LESS THAN RS.20 LAKHS. THEREFORE, T HE PRESENT APPEAL OF THE REVENUE IS HIT BY THE CBDT CIRCULAR AND HENCE N OT MAINTAINABLE. FURTHER, LD.DR HAS NOT POINTED OUT WHETHER THE CASE OF THE REVENUE FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRC ULAR OR NOT. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISI ONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCO RDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE 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 ITA NO.25/RJT/2017 3 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. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 1 ST NOVEMBER, 2018 AT AHMEDABAD. SD/- SD/- ( WASEEM AHMED ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER