The ITO., Ward-2(3), Bhavnagar V. Shri Hemant Rasiklal Vora, Bhavnagar

ITA 2657/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9524 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 08-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 24-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMIR VAKIL
• Assessee Lawyers: MOHIT A BALANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, A HMEDABAD , (BEFORE SHRI ANIL CHATURVEDI, A.M. & SHRI S. S. GOD ARA, J.M.) ( , !'# ' $' $%& , ! '( ) ITA NO. 2657/AHD/2011 (ASSESSM ENT YEAR: 2008-09) INCOME-TAX OFFICER, WARD 2(3), BHAVNAGAR VS. SHRI HEMANT RASIKLAL VORA PROP. OF KARAN ENTERPRISE, 6, GITANJALI COMPLEX, KALANALA, BHAVNAGAR 364001 PAN NO. AAHPV7459F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SAMIR VAKIL, SR. D.R. RESPONDENT BY : SHRI MOHIT A. BALANI, A.R. DATE OF HEARING : 08 -02-201 6 DATE OF PRONOUNCEMENT : 12-02-2016 ( )/ ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-XX, AHMEDABAD DATED 23.08.2011 FOR A.Y. 2008-09. 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER:- ITA NO.2657/AHD/11 A.Y. 2008-09 (ITO VS. S HRI HEMANT R. VORA) 2 1. THE LD. CIT(A) XX, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.14,65,317/- U/S.28(IV) OF THE I.T. ACT MADE BY T HE ASSESSING OFFICER. 2. THE DECISION OF THE LD. CIT(A) IS ERRONEOUS AND NOT ACCEPTABLE ON FACTS AS THE SALES TAX SUBSIDY BEING REVENUE RECEIPT IS TRANSFERRED TO PAR TNERS ACCOUNT AS A CREDIT. IT IS NOT ASSESSED IN THE HANDS OF THE FIRM AND AS SUCH, IT I S TO BE TAXED AS BUSINESS PROFIT, IN THE HANDS OF THE PARTNER. 3. BEFORE US, AT THE OUTSET, LD. A.R. SUBMITTED THA T THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. THE LD. A.R. ALSO PLACED ON RECORD THE WORKING OF LOW TAX EFFECT. THE LD. D.R. FAIRLY ADM ITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIR CULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENU E, WE FIND THAT REVENUE IS AGGRIEVED BY THE AGGREGATE ADDITIONS OF RS.14,65,31 7/-, THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTR AL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 L ACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PEND ING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITION S WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESEN T APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRC ULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS O F THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DE PARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LO W TAX EFFECT. IN SUCH ITA NO.2657/AHD/11 A.Y. 2008-09 (ITO VS. S HRI HEMANT R. VORA) 3 CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WIT HOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 12 - 02 - 2016. SD/- SD/- (S. S. GODARA) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 12-02-2016 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD