The ITO, Ward-4(1), Ahmedabad V. Gopal Glass Works Ltd., Ahmedabad

ITA 2713/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1923 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 29 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: 03-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: PAMIL H SHAH
• Keywords: Retrospective amendment; Tax effect
• Section: 14A

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.2713/AHD/2012 WITH CO NO.14/AHD/2013 / ASSTT. YEAR: 2008-2009 ITO, WARD - 4(1) AHMEDABAD. VS GOPAL GLASS WORKS LTD. 182, GAGAN VIHAR KHANPUR AHMEDABAD 380 001. PAN : AAACG 5599 H ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI DINESH SINGH, SR.DR ASSESSEE BY : PAMIL H. SHAH, AR / 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)-III, AHMEDABAD DATED 24.9.2012 PASSED FOR THE ASSTT.YEAR 2008-09. 2. THE ONLY ISSUE AGITATED BY THE REVENUE IN THIS A PPEAL IS AGAINST RESTRICTION OF DISALLOWANCE OF RS.16,46,134/- TO RS .1,10,130/- UNDER SECTION 14A OF THE INCOME TAX ACT. ITA NO.2713/AHD/2012 WITH CO 2 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE S UBMITTED THAT THE PRESENT APPEAL FILED BY THE REVENUE IS NOT MAINTAIN ABLE IN VIEW OF THE RECENT CBDT INSTRUCTIONS DIRECTING THE DEPARTMENT N OT TO FILE APPEAL, WHERE TAX EFFECT IS BELOW RS.10 LAKHS. THE LD.COUN SEL HAS SUBMITTED A CALCULATION SHEET DEMONSTRATING THAT THE TAX EFFECT IS BELOW RS.10 LAKHS, WHICH, INTER ALIA, READS AS UNDER: TAX EFFECT AS PER DEFINATION GIVEN IN THE CIRCULAR: TAX ON TOTAL INCOME ASSESSED RS.23,54,618/- LESS: TAX ON INCOME REDUCED BY ADDITION DELETED AGAINST WHICH APPEAL IS FILED RS.18,93,816/ - DIFFERENCE BEING TAX EFFECT RS.4,60,801/- THE LD.DR HAS NOT DISPUTED THE CBDT INSTRUCTIONS R ELIED UPON BY THE ASSESSEE NOR DISPUTED CALCULATION SHEET SUBMITT ED BY THE ASSESSEE SHOWING TAX EFFECT BEING BELOW RS.10 LAKHS. 4. WE FIND THAT THE APPEALS OF THE REVENUE IS PRESE NTED ON 3.12.2012. 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.15,36, 004/- (RS.16,46,134 MINUS RS.1,10,130). IN ACCORDANCE WITH THE ABOVE C BDT CIRCULAR THE TAX EFFECT ON THE SAME WOULD BE LESS THAN RS.10 LAK HS, AND THEREFORE, THE ITA NO.2713/AHD/2012 WITH CO 3 PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMIS SED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. FURTHE R, THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED 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-V ERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT I S MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION , THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN FOUR YEARS OF TH IS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. THE CROSS-OBJECTION FILED BY THE ASSESSEE, HAS N OT BEEN PRESSED FOR ADJUDICATION, HENCE, THE SAME IS DISMISSED FOR WANT OF PROSECUTION. 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