The ADIT( International Taxation), Ahmedabad V. Joshi Technologies International Inc., Ahmedabad

ITA 2622/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0933 (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: C
• Next Hearing Date: 08-08-2016
• Assessment Year: 2009-2010
• 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.2622/AHD/2013 /BLOCK ASSTT. YEAR: 2009-2010 ASSTT.DIRECTOR OF INCOME TAX (INT.TAXATION) AHMEDABAD. VS JOSHI TECHNOLOGIES INTERNATIONAL INC. HERITAGE, OFF ASHRAM ROAD USMANPURA AHMEDABAD. %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI SATISH SOLANKI, SR.DR ASSESSEE BY : SHRI SANJAY R. SHAH / 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), GANDHINAGAR D ATED 6.8.2011 PASSED FOR THE ASSTT.YEAR 2009-10. 2. SOLE GRIEVANCE OF THE REVENUE IN THIS APPEAL IS THAT THE LD.CI(A) HAS ERRED IN DELETING THE ADDITION OF RS.15,63,043/- ON ACCOUNT OF FBT MADE BY THE AO. 3. THE LD.COUNSEL FOR THE ASSESSEE, AT THE OUTSET, CONTENDED THAT THE APPEAL FILED BY THE REVENUE CANNOT BE ADMITTED IN VIEW OF RECENT CBDT CIRCULAR NO.21/2015 DATED 10.12.2015 RESTRICTING FILING OF A PPEAL BY THE REVENUE BEFORE THE TRIBUNAL, WHERE TAX EFFECT IS BELOW RS.1 0 LAKHS, AND THAT THE TAX EFFECT ON THE IMPUGNED ADDITION OF RS.15,63,043/- I S MUCH BELOW RS.4 LAKHS. ITA NO.2622/AHD/2013 2 THE LD.DR, COULD NOT CONTROVERT TO THE INSTRUCTION OF THE CBDT PROHIBITING FILING OF THE APPEAL BY THE REVENUE, WHERE TAX EFFE CT IS BELOW RS.10 LAKHS. 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 ADD ITION CONTESTED BY THE REVENUE IN THE PRESENT APPEAL IS RS.15,63,043/- AND THE TAX EFFECT ON THE IS LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPE AL DESERVES 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 10 TH AUGUST, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 10/08/2016