The DCIT,(OSD),Range-1, Ahmedabad V. M/s. CLP Power India Pvt. Ltd., Ahmedabad

ITA 2500/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5072 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2004-2005
• Appeal Filed On: 24-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: BIREN SHAH
• Keywords: Wrong claim; Tax effect

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 2500/AHD/2015 ( ASSESSMENT YEAR : 2004-05) DCIT, CIRCLE-1(1)(2), AHMEDABAD / VS. M/S. CLP POWER INDIA PVT. LTD., 6 TH FLOOR, CHANAKYA BUILDING, OFF. ASHRAM ROAD, AHMEDABAD 380009 ./ ./ PAN/GIR NO. : AAACP6900B ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI DINESH SINGH, SR. D.R. / RESPONDENT BY : SHRI BIREN SHAH, A.R. DATE OF HEARING 18/07/2018 !'# / DATE OF PRONOUNCEMENT 09/08/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-1, AHMEDABA D (CIT(A) IN SHORT), DATED 02.06.2015 ARISING IN THE PENALTY ORD ER DATED 30.07.2014 ITA NO. 2500/AHD/15 [DCIT VS. M/S. CLP POWER INDIA PVT. LTD.] A.Y. 2004-05 - 2 - PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 271(1 )(C) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING ASSESSMENT YEAR 2004-05. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS.19,83,152/- LEVIED U/S 271(1)(C) OF THE ACT. 2. THE LD. CIT(A) HAS ERRED IN NOT APPRECIATING THE FACT THAT THE ASSESSEE FAILED TO SUBSTANTIATE THE REASONS FOR MAKING WRONG CLAIM IN THE RETURNED INCOME IN TERMS OF CLAUSE (B) TO EXPLANATION 1 OF SECTION 271(1)(C) OF THE ACT. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISIN G THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED IS SUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. ACCORDINGLY, APPEA L OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE ITA NO. 2500/AHD/15 [DCIT VS. M/S. CLP POWER INDIA PVT. LTD.] A.Y. 2004-05 - 3 - REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWIN G INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (PRADI P KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 09/08/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 09/08/201 8