The ITO, Ward-5(3), Baroda V. M/s. Khedkar & CO., Baroda

ITA 2618/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9847 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 7 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: 02-12-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 06-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VILAS V SHINDE
• Assessee Lawyers: M K PATEL
• Keywords: Retrospective amendment; Tax effect
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.2618/AHD/2013 /BLOCK ASSTT. YEAR: 2004-2005 THE ITO, WARD-5(3) BARODA. VS M/S.KHEDKAR & CO. BRAHMPURI DANDIA BAZAR BARODA. PAN : AACFK 8149 A %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI VILAS V. SHINDE, DR ASSESSEE BY : SHRI M.K. PATEL, AR / DATE OF HEARING : 02/12/2016 / DATE OF PRONOUNCEMENT: 13/01/2016 )*/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF LD.COMMISSIONER INCOME-TAX (APPEALS)-V, BARODA DATE D 23.8.2013 PASSED FOR THE ASSTT.YEAR 2004-05. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT( A) HAS ERRED IN DELETING DISALLOWANCE OF RS.6,84,994/- MADE OUT OF INTEREST PAID ON BORROWED FUNDS AND RS.11,31,346/- MADE UNDER SECTION 43B OF THE AC T. 3. THIS APPEAL WAS PRESENTED ON 15.06.2011. ON 10. 12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBI TING ITS SUBORDINATE ITA NO.2618/AHD/2013 2 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.1,19,320/-. THE ADDITION DELETED BY THE C IT(A) IS OFRS.6,84,994/- AND RS.11,31,346/- AND THE AGGREGATE TAX EFFECT ON DELETION OF THESE TWO WOULD BE LESS THAN RS.10 LAKHS. THEREFORE, PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS P ROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING TH E APPEAL, SUCH FACTORS WERE NOT BE CONSIDERED, 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. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 13 TH JANUARY, 2016 AT AHMEDABAD. SD/- SD/- ( MANISH BORAD ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 13/01/2016