The ITO, Ward-2(2)(2), Ahmedabad V. Smt. Hiral Somabhai Prajapati, Ahmedabad

ITA 2772/AHD/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1349 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 16-12-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 01-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DILEEP KUMAR SRDR
• Assessee Lawyers: PF JAIN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER ./ ITA NO. 2772/AHD/2015 / ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER, WARD-2(2)(2), AHMEDABAD .. APPELLANT VS SHRI HIRAL SOMABHAI PRAJAPATI, KHODAL BHAVAN, KHODIYAR KRUPA BUNGLOW, NR. S.B. TRUST VADI, NEW WADAJ, AHMEDABAD .. RESPONDENT PAN : AMWPP 2545 F REVENUE BY : SHRI DILEEP KUMAR, SR-DR ASSESSEE(S) BY : SHRI P.F. JAIN, AR / DATE OF HEARING 1 6 /12/2015 /DATE OF PRONOUNCEMENT 29 / 12/ 201 5 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-10, AH MEDABAD DATED 10.07.2015 FOR ASSESSMENT YEAR 2006-07, ON THE F OLLOWING GROUNDS:- 1. LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS.5,60,000/- LEVIED BY THE AO U/S 271(1) (C) OF THE ACT, WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CAS E AND THE MATERIAL BROUGHT ON RECORD. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE L D. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 2. BEFORE ME, AT THE OUTSET, LD. AUTHORIZED REPRESENTATIV E SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO B E DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS TH AN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. (SMC) ITA NO. 2772/AHD/2015 ITO VS. SHRI HIRAL SOMABHAI PRAJAPATI AY 2006-07 2 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISE D BY THE REVENUE, I FIND THAT REVENUE IS AGGRIEVED BY THE DELE TION OF PENALTY OF RS.5,60,000/- LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C), THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS PER THE A NNOUNCEMENT OF CENTRAL 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 APPELLATE T RIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS.10 LACS A ND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO TH E PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPU TED FACT THAT THE TAX EFFECT IS LESS THAN RS.10 LACS, I AM OF THE VIEW TH AT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CB DT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTM ENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCO UNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, I DISMISS THE APPE AL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 29TH DECEMBER, 201 5 AT AHMEDABAD. SD/- ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 29/12/2015 BIJU T., PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / DR, ITAT, AHMEDABAD 6. (- . / GUARD FILE. / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD