The ITO, Ward-1, Bardoli V. Shri Abdulsattar G. Aaraf, Surat

ITA 2535/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9872 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 12-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 31-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIV SEWAK
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.2535/AHD/2015 /BLOCK ASSTT. YEAR: 2008-2009 ITO, WARD-1 BARDOLI SURAT. VS SHRI ABDULSATTAR G. AARAF AT. HATHODA, TAL MANGROL DIST. SURAT. PAN : ADLPA 3201 H %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI SHIV SEWAK, SR.DR ASSESSEE BY : WRITTEN SUBMISSIONS / DATE OF HEARING : 12/01/2016 / DATE OF PRONOUNCEMENT: 13/01/2016 )*/ O R D E R THE REVENUE IS IN APPEAL BEFORE ME AGAINST THE ORDE R OF LD.COMMISSIONER INCOME-TAX (APPEALS)-1, SURAT DATED 26.6.2015 PASSED FOR THE ASSTT.YEAR 2008-09. 2. THE SOLE GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) HAS ERRED IN DELEING THE PENALTY OF RS.9,80,951/- LEVIED U/S.271 (1)(C) OF THE INCOME TAX ACT BY THE AO. 3. AT THE OUTSET, IT IS BROUGHT TO OUR NOTICE THAT WRITTEN SUBMISSIONS FILED ON BEHALF OF THE ASSESSEE IN WHICH IT IS HAS STATED THAT THE REVENUE HAS FILED THE PRESENT APPEAL IN VIOLATION OF CBDT CIRCULAR NO .21/2015 DATED 10.12.2015, AND THEREFORE, THE APPEAL IS LIABLE TO BE DISMISSED AS TAX EFFECT ITA NO.2535/AHD/2015 2 INVOLVED IN THIS CASE IS LESS THAN THE MONETARY LIM IT FILED BY THE CBDT. THE LD.DR, HAS NOT CONTROVERTED TO THE DIRECTIONS OF TH E CBDT CONTAINED IN THE ABOVE CIRCULAR. 4. I FIND THAT THIS APPEAL WAS PRESENTED ON 31.08.2 015. 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 ASS ESSED INCOME OF THE ASSESSEE IS OF RS.32,29,30/-. THE TAX EFFECT ON THE ADDITIO N OF RS.30,26,000/- ON WHICH IMPUGNED PENALTY AMOUNTING TO RS.9,80,951/- H AS BEEN IMPOSED, IS LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPEAL DE SERVES 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 ALS, 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 13 TH JANUARY, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 13/01/2016