The ACIT,(OSD).Circle-9, Ahmedabad V. M/s. Saptagir Logistics, Ahmedabad

ITA 2697/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1906 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 30-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA.NO.2697/AHD/2012 WITH CO NO.8/AHD/2013 / ASSTT. YEAR: 2008-2009 ACIT, (OSD) CIR.9 AHMEDABAD. VS M/S.SAPTAGIRI LOGISTICS C/O. JAMNAGAR WAREHOUSE B/H. MEGHDOOT HOTEL SARANGPUR, AHMEDABAD 380 002. ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI DINESH SINGH, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 16/03/2016 / DATE OF PRONOUNCEMENT: 01/04/2016 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF THE LD.CIT(A)-XV, AHMEDABAD DATED 25.9.2012 PASSED FOR THE ASSTT.YEAR 2008-09. ON RECEIPT OF NOTICE IN THE APPEAL OF THE REVENUE, THE ASSESSEE HAS ALSO FILED CROSS OBJECTION BEARING NO.8/AHD/201 3 ON 23.1.2013. ITA NO.2697/AHD/2012 WITH CO 2 BOTH THE APPEAL OF THE REVENUE AND THE CO OF THE AS SESSEE ARE DISPOSED OF BY THIS CONSOLIDATED ORDER. 2. THE ONLY ISSUE AGITATED BY THE REVENUE IN ITS AP PEAL IS AGAINST DELETION OF DISALLOWANCE OF RS.15,96,904/- MADE BY THE AO UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT ON ACCOUNT OF INTEREST PAID TO VARIOUS PARTIES. 3. QUA THE APPEAL OF THE REVENUE, A QUERY FROM THE BENCH AS TO THE MAINTAINABILITY OF THE APPEAL OF THE REVENUE IN VIE W OF THE RECENT CBDT INSTRUCTIONS DIRECTING THE DEPARTMENT NOT TO FILE A PPEAL, WHERE TAX EFFECT IS BELOW RS.10 LAKHS, THE LD.DR DID NOT DISPUTE THE SAME, AND SUBMITTED THAT SINCE THE REVENUE HAS FILED ITS APPEAL ON 30.1 1.2012 MUCH BEFORE THE DATE OF THE CBDT INSTRUCTIONS STIPULATING THE F ILING OF THE APPEAL BEFORE THE TRIBUNAL, THE ISSUE MAY BE SENT BACK TO THE AO TO DECIDE THE TAX EFFECT PRESCRIBED BY THE CBDT IN THIS BEHALF. 4. WE FIND THAT THE APPEAL OF THE REVENUE IS PRESEN TED ON 30.11.2012. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEAR ING NO. 21/2015 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL 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 L AKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT , MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEAL S ALSO. IN THE PRESENT CASE, ADDITION IMPUGNED BY THE REVENUE IS RS.15,96, 904/-. IN ACCORDANCE WITH THE ABOVE CBDT CIRCULAR THE TAX EFF ECT ON THE SAME WOULD BE LESS THAN RS.10 LAKHS, AND THEREFORE, THE PRESENT APPEAL OF THE ITA NO.2697/AHD/2012 WITH CO 3 REVENUE DESERVES TO BE DISMISSED BEING TREATED TO B E FILED IN VIOLATION OF CBDT INSTRUCTIONS. FURTHER, THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FUR THER OBSERVED THAT SINCE, WHILE HEARING THE APPEALS, SUCH FACTORS COULD NOT B E CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END O F THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITH IN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WI LL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. THE CROSS-OBJECTION FILED BY THE ASSESSEE IS MER ELY IN SUPPORT OF THE ORDER OF THE LD.CIT(A), AND SINCE WE HAVE DISMI SSED THE APPEAL OF THE REVENUE, THE CO OF THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AND CO OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 1 ST APRIL, 2016 AT AHMEDABAD. SD/- SD/- ( N.K. BILLAIYA ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/04/2016