The ITO, Ward-5(3), Baroda V. Shri Kanubhai P. Shah, Baroda

ITA 2619/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0931 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 08-08-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 06-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.2619/AHD/2013 /BLOCK ASSTT. YEAR: 2006-2007 ITO, WARD-5(3) BARODA. VS SHRI KANUBHAI P. SHAH PROP. OF LAXMI ENGG. CO. LAHERIPURA, NEW ROAD BARODA. PAN : ADBPS 6223 P %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI SATISH SOLANKI, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 08/08/2016 / DATE OF PRONOUNCEMENT: 10/08/2016 )*/ O R D E R THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINS T THE ORDER OF LD.COMMISSIONER INCOME-TAX (APPEALS)-V, BARODA DATE D 22.8.2013 PASSED FOR THE ASSTT.YEAR 2006-07. 2. SOLE GRIEVANCE OF THE REVENUE IN THIS APPEAL IS THAT THE LD.CI(A) HAS ERRED IN LAW IN DELETING PENALTY U/S.271(1)(C) OF T HE ACT OF RS.3.50 LAKHS. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. IN THE GROUNDS OF APPEAL, THE REVENUE HAS MENTIONED THAT TAX EFFECT ON THE ADDITI ON MADE BY THE AO IS OF RS.3.50 LAKHS. THEREFORE, A QUERY WAS RAISED FROM THE BENCH AS TO MAINTAINABILITY OF APPEAL FILED BY THE REVENUE BEFO RE THE TRIBUNAL, IN VIEW OF RECENT CBDT CIRCULAR NO.21/2015 DATED 10.12.2015 RE STRICTING FILING OF ITA NO.2619/AHD/2013 2 APPEAL BY THE REVENUE BEFORE THE TRIBUNAL, WHERE TA X EFFECT IS BELOW RS.10 LAKHS. THE LD.DR COULD NOT CONTROVERT TO THE SAME. 4. I FIND THAT THIS APPEAL WAS PRESENTED ON 6.11.20 13. 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.13,38,750/- AND THE TAX EFFECT ON THE DISP UTED ADDITION OF RS.9,47,238/-, ON WHICH IMPUGNED PENALTY UNDER SECT ION 271(1)(C) OF THE ACT HAS BEEN MADE, IS LESS THAN RS.10 LAKHS. THEREFORE , THE PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. FURTHER, THE CASE DOES NOT FALL WITH IN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERV ED THAT SINCE, WHILE HEARING THE APPEALS, SUCH FACTORS COULD NOT BE CROSS-VERIFI ED, THEREFORE, IN CASE, ON RE- VERIFICATION AT THE END OF THE AO, IT CAME TO THE N OTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PRO VIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DIS MISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 10 TH AUGUST, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 10/08/2016