The ITO, Ward-1(1), RAJKOT-GUJARAT V. M/s. Hindustan Trade Overseas Pvt. Ltd., RAJKOT-GUJARAT

ITA 289/RJT/2014

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1559 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 29-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 143(3)

Judgement Text

ITO, WARD - 1(1), RAJKOT VS. HINDUSTAN TRADE OVERSEAS PVT. LTD. / ITA NO. 289 / R JT /20 1 4 / A . Y. 20 0 9 - 10 PAGE 1 OF 3 , , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT . . [ , . . , BEFORE SHRI C. M.GARG , JUDICIAL MEMBER AND SHRI O.P.MEENA , ACCOUNTANT MEMBER . . ./ I.T . A . NO. 289 / RJT / 201 4 [[ / ASSESSMENT YEAR : 20 0 9 - 10 THE INCOME TAX OFFICER, WARD - 1(1), RAJKOT. VS. HINDUSTAN TRADE OVERSEAS PVT. LTD., M - 156, GUJARAT HOUSING BOARD, STREET NO.8, AMIN MARG, RAJKOT. [PAN: AACCH 1127 Q] APPELLANT / RESPONDENT [ /ASSESSEE BY SHRI VIMAL DESAI A.R. /REVENUE BY SHRI PRAVEEN VERMA SR. D.R. / DATE OF HEARING: 19 .11. 2018 /P RONOUNCEMENT ON 19 . 1 1 .2018 /O R D E R PER O. P. MEENA, ACCOUTANT MEMBER: 1. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME T AX (APPEALS), JAMNAGAR (IN SHORT THE CIT (A)) DATED 24.02.2014 PERTAINING TO ASSESSMENT YEAR 2009 - 10 WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE INCOME TAX OFFICER , WARD - 1 (1) , RAJKOT (IN SHORT ITO, WARD - 1(1), RAJKOT VS. HINDUSTAN TRADE OVERSEAS PVT. LTD. / ITA NO. 289 / R JT /20 1 4 / A . Y. 20 0 9 - 10 PAGE 2 OF 3 THE AO) DATED 30 . 1 2.20 11 UNDER SECTION 143(3) OF INCOME TAX ACT,1961 (IN SHORT THE ACT). 2. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL AVAILABLE ON RECORD AND FIND THAT TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS. 20 LAKHS. THE LD. DR ALSO DID NOT DISPUTE THIS FACT. WE FIND THAT THE CBDT VIDE CIRCULAR NO.3/2018 DATED 11.07.2 018 [ F.NO.279/MISC.142/2007 - ITJ (PT)] HAS REVISED THE MONETARY LIMIT FOR FILING OF APPEAL BEFORE TRIBUNAL FIXING THE TAX EFFECT LIMIT AT RS.20 LACS. THE SAID CIRCULAR S UPERSEDES THE EARLIER CIRCULAR(S) ISSUED ON THE SUBJECT OF TAX EFFECT AND APPLIES TO ALL PENDING APPEAL RETROSPECTIVELY.THE BOARD HAS PROVIDED EXCEPTIONS PROVIDED UNDER PARA 10 OF THE CIRCULAR WHEREIN IT HAS BEEN PROVIDED THAT THE ISSUES RELATED IS TO BE CONTESTED (A) WHERE THE CONSTITUTION VALIDITY OF THE PROVISION OF THE ACT OR (B) RULE IS UNDER CHALLENGE OR (C) WHERE BOARD`S ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR WHERE REVENUE AUDIT OBJECTIONS HAS BEEN ACCEPTED BY THE DEPARTMENT OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASS ETS/BANK ACCOUNTS, ETC. ITO, WARD - 1(1), RAJKOT VS. HINDUSTAN TRADE OVERSEAS PVT. LTD. / ITA NO. 289 / R JT /20 1 4 / A . Y. 20 0 9 - 10 PAGE 3 OF 3 3. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXCEPTIONS CLAUSE AND THE TAX DEMAND IS LESS THAN RS.20 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AS PER RECENT CIRCULAR (SUPRA) AND HENCE THE SAME IS DISMISSED. HOWEVER, WE MAY MAKE IT CLEAR THAT THE REVENUE IS AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALLING THIS ORDER, IF IT COMES TO THE NOTICE OF THE ASSESSING OFFICER THAT THE TAX EFFECT IS MORE THAN THE MONETARY LIMIT PRESCRIBED UNDER CIRCULAR OR REVENUE`S CA SE FALLS WITHIN THE AMBIT OF THE EXCEPTIONS PROVIDED IN THE CIRCULAR. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. 5. THE ORDER PRONOUNCED IN THE OPEN COURT ON 19 .11.2018 . SD/ - SD/ - ( . . /C.M. GARG) ( . . / O.P.MEENA) / JUDICIAL MEMBER /ACCOUNTANT MEMBER / RAJKOT, DATED : 19 TH NOVEMBER , 2018/ S.GANGADHARA RAO, SR.PS COPY OF ORDER SENT TO - ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, RAJKOT