The ACIT, Central Circle-1(1), Ahmedabad V. M/s. Navratna Organisers & Developers Pvt. Ltd., Ahmedabad

ITA 2633/AHD/2011

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7013 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-07-2017
• Assessment Year: 1997-1998
• Appeal Filed On: 21-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P VAISHNAV
• Keywords: Tax effect
• Section: 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA.NO.2633/AHD/2011 / ASSTT. YEAR: 1997-98 ACIT, CENT.CIR.1(1) AHMEDABAD. VS. NAVRATNA ORGANIZERS & DEVELOPERS P. LTD. 2 ND FLOOR, KAYCREST OPP: GUJARAT GAS COMPANY LTD. NR. PARIMAL CROSSING AHMEDABAD. PAN : AAACN 5181 E ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI O.P. VAISHNAV, CIT-DR ASSESSEE BY : SHRI TUSHAR HEMANI, WITH SHRI P.B. PARMAR, AR / DATE OF HEARING : 31/10/2018 / DATE OF PRONOUNCEMENT: 18/01/2019 +,/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-1, AHMEDABAD DATED 30.8.2011 PASSED THE ASSTT.YEAR 199 7-98. 2. ONLY GROUND IN THIS APPEAL RELATES TO DELETION O F ADDITION OF RS.35,91,717/- MADE BY THE AO UNDER SECTION 68 OF T HE INCOME TAXACT. 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT INVOLVED IN IT. HE SUBMITTED THAT THE CBDT HAS ISSUED A CIRCULAR BE ARING NO.3 OF 2018 DATED 11.08.2018, VIDE WHICH IT HAS PROHIBITED ITS AUTHOR ITIES NOT TO FILE APPEAL ITA NO.2633/AHD/2011 2 BEFORE THE TRIBUNAL, IF TAX EFFECT BY VIRTUE OF REL IEF GIVEN BY THE CIT(A) IS LESS THAN RS.20 LAKHS. ON DELETION OF IMPUGNED ADDITION TAX EFFECT WILL BE LESS THAN RS.20 LAKHS, AND THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE IN VIEW OF THE ABOVE CBDT CIRCULAR. FURTHER, LD.DR HAS NOT POINTED OUT WHETHER THE CASE OF THE REVENUE FALL WITHIN THE AMBIT OF EXCEPT IONS PROVIDED IN THE CIRCULAR OR NOT. THUS, KEEPING IN VIEW THE ABOVE C BDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, W E ARE OF THE VIEW THAT THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MO RE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRC ULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 18 TH JANUARY, 2019 AT AHMEDABAD. SD/ - (AMARJIT SINGH) ACCOUNTANT MEMBER SD/ - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 18/01/2019