The ITO,A'bad Ward-2(1), Ahmedabad V. M/s. Deegen Remedies, Ahmedabad

ITA 2706/AHD/2010

• Counselvise Citation: 270620514 RSA 2010
• Duration Of Justice: 3 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 17-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JHANGID
• Keywords: Tax effect

Judgement Text

, , , , C, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . . . . , , , , ! ! ! ! ' #$ ' #$ ' #$ ' #$ , , , , % % % % BEFORE S/SHRI N.S. SAINI, ACCOUNTANT MEMBER AND KUL BHARAT, JUDICIAL MEMBER) ITA NO.2706/AHD/2010 [ASSTT.YEAR : 2007-2008] ITO, WARD-2(1) AHMEDABAD. /VS. M/S.DEEGEN REMEDIES B/42-43-44, SHANTI COMMERCIAL CENTRE NAGAR SHETH NO VANDO GHEEKANTA, AHMEDABAD. PAN : AADFD 2044 C ( (( ('( '( '( '( / APPELLANT) ( (( ()*'( )*'( )*'( )*'( / RESPONDENT) +$ , - / ASSESSEE BY : NONE / , - / REVENUE BY : SHRI J.P. JHANGID, SR.DR '0 , $1/ DATE OF HEARING : 28 TH OCTOBER, 2013 234 , $1/ DATE OF PRONOUNCEMENT : 31.10.2013 5 / O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A )-VII, AHMEDABAD DATED 7.6.2010 2. THE APPEAL FILED BY THE REVENUE IS BARRED BY LIM ITATION BY 33 DAYS. THE REVENUE HAS FILED CONDONATION PETITIO N. WE ARE ITA NO.2706/AHD/20101 -2- SATISFIED WITH THE REASONS STATED WITH REGARD TO TH E DELAY IN FILING OF THE APPEAL, AND THEREFORE, DELAY IS CONDONED AND THE APPEAL IS ADMITTED FOR HEARING. 3. AT THE OUTSET, IT WAS POINTED OUT BY THE BENCH T HAT THE TAX EFFECT IN THIS APPEAL IS BELOW ` 3,00,000/-, AND THEREFORE, APPEAL IS LIABLE TO BE DISMISSED IN VIEW OF THE RECENT CIR CULAR ISSUED BY THE CBDT RESTRICTING THE FILING OF THE APPEAL BY TH E REVENUE BEFORE THE ITAT. 4. THE LEARNED DR SUBMITTED THAT THE CIRCULAR OF TH E CBDT REGARDING NON-FILING OF THE APPEAL, WHERE THE TAX E FFECT IS BELOW ` 3,00,000/- WAS NOT BINDING ON THE OFFICERS AND THAT THEY CAN FILE THE APPEAL TO THE TRIBUNAL INSPITE OF SAID CIRCULAR OF THE CBDT, AND THE APPEAL THEREAFTER HAS TO BE DECIDED BY THE TRIBUNAL ON MERITS. 5. WE ARE NOT IN AGREEMENT WITH THE ABOVE SUBMISSIO NS OF THE LEARNED DR. THE HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. SURESHCHANDRA DURGAPRASAD KHATOD (HUF) IN TAX A PPEAL NO.1404/2010 ORDER DATED 24.8.2012 HAS HELD THAT CB DT INSTRUCTION NO.3/2011 DATED 9.2.2011 WAS APPLICABLE TO ALL PENDING APPEALS, AND THAT TAX APPEAL BELOW THE TAX EFFECT OF ` 10,00,000/- WAS NOT MAINTAINABLE BEFORE THE HIGH CO URT. SIMILARLY, THE HONBLE SUPREME COURT IN THE CASE O F CIT VS. SURYA HERBAL LTD., (2013) 350 ITR 300 (SC) AFTE R POINTING ITA NO.2706/AHD/20101 -3- OUT THAT THERE ARE CASES UNDER THE INCOME TAX ACT , 1961, IN WHICH A COMMON PRINCIPLE MAY BE INVOLVED IN SUBSEQU ENT GROUP OF MATTERS OR LARGE NUMBER OF MATTERS. IN OUR VIEW, IN SUCH CASES IF ATTENTION OF THE HIGH COURT IS DRAWN, THE HIGH C OURT WILL NOT APPLY THE CIRCULAR IPSO FACTO, CONFIRMED THE ORDER OF THE HONBLE DELHI HIGH COURT IN DISMISSING THE APPEAL OF THE RE VENUE IN LIMINE BY FOLLOWING THE CBDT CIRCULAR NO.3 OF 2011. THE LEARNED DR HAS NOT BEEN ABLE TO POINT OUT BEFORE US ANY OF THE CIRCUMSTANCES AS LAID DOWN BY THE HONBLE SUPREME C OURT IN THE MATTER OF SURYA HERBAL LTD. (SUPRA) BEING APPLICABL E TO THIS CASE, WHICH WOULD LEAD TO NON-APPLICATION OF THE ABOVE CB DT CIRCULAR. IN THE ABOVE CIRCUMSTANCES, WE DISMISS THE APPEAL O F THE REVENUE AS NOT MAINTAINABLE, AS THE TAX EFFECT IN T HE APPEAL FILED BY THE REVENUE IS BELOW ` 3,00,000/-. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( ' #$ ' #$ ' #$ ' #$ /KUL BHARAT /JUDICIAL MEMBER . .. . . . . . /N.S. SAINI /ACCOUNTANT MEMBER C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD