The ACIT, Circle-1, Bhavnagar V. Shri Dharmik J.Vanani, Bhavnagar

ITA 2915/AHD/2009

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9757 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 08-01-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 23-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , , BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER SL. NO(S) ITA NO(S) ASSESSMENT YEAR(S) APPEAL(S) BY APPELLANT VS. RESPONDENT APPELLANT RESPONDENT 1. 3480/AHD/2010 2007 - 08 THE ACIT, CIRCLE-1 BHAVNAGAR JAYANTKUMAR NANALAL PATEL (HUF) PLOT NO.2214/B/C/1, MANAN HILL DRIVE, BHAVNAGAR PAN: AACHJ 3084R 2. 3481/AHD/2010 2007 - 08 T HE ACIT CIR-1, BHAVNAGAR SHRI JAYANTKUMAR NANALAL PATEL -ADDRESS AS ABOVE- PAN:AAOPP 4655Q 3. 3482/AHD/2010 2007 - 08 THE DCIT CIR-1, BHAVNAGAR SHRI KEVAT JAYANT KUMAR VANANI -ADDRESS AS ABOVE- PAN: ACCPV 5148C 4. 2915/AHD/2009 2006 - 07 THE ACIT CIR-1 BHAVNAGAR SHRI DHARMIK J.VANANI -ADDRESS AS ABOVE- PAN: AEBPV 7158 P REVENUE BY : SHRI B.L.SHARMA, DR ASSESSEE(S) BY : SHRI S.N. SOPARKAR, WITH MS.URVASHI SHODHAN, ARS / DATE OF HEARING 08/01/2016 !' / DATE OF PRONOUNCEMENT 28/01/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS BUNCH OF FOUR APPEALS BY THE REVENUE IN THE CA SE(S) OF DIFFERENT ASSESSEES ARE DIRECTED AGAINST THE SEPARA TE ORDERS OF THE ITA NOS.3480,3481 & 3482 /AHD/2010 ASST.YEAR 2007-08 & ITA NO.2915/AHD/2009 - AY 2006-07 - 2 - LD.COMMISSIONER OF INCOME TAX(APPEALS)-XX, AHMEDAB AD (CIT(A) IN SHORT) PERTAINING TO ASSESSMENT YEAR (AY) 2007- 08 DATED 13/10/2010 AND AY 2006-07 DATED 07/07/2009. SINCE COMMON ISS UES AND FACTS ARE INVOLVED IN THESE APPEALS, THESE WERE HEARD TOGETHE R AND ARE BEING DISPOSED OF BY WAY OF THIS CONSOLIDATED ORDER FOR T HE SAKE OF CONVENIENCE. 2. AT THE OUTSET, LD.COUNSEL FOR THE ASSESSEE POINT ED OUT THAT AS PER CENTRAL BOARD OF DIRECT TAXES CIRCULAR NO.21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMKBR-2015, THE REV ISED LIMIT FOR PREFERRING REVENUES APPEAL IS RS.10 LACS. HE S UBMITTED THAT THE TAX EFFECT IN THE PRESENT REVENUES APPEALS IS BELOW TH E PRESCRIBED LIMIT OF RS.10 LACS IN VIEW OF THE FACT THAT THE ASSESSEES PROFITS ON SALE OF SHARES HAS BEEN CONSIDERED AS SHORT TERM CAPITAL GAIN (STC G) AS AGAINST THE TREATMENT OF THE SAME AS BUSINESS INCOME BY THE REV ENUE. HE, THEREFORE, PLEADED THAT IN VIEW OF THE CBDT CIRCULA R, THE REVENUE'S APPEALS MAY BE DISMISSED AS THE TAX EFFECT BEING BE LOW THE PRESCRIBED LIMIT. 3. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR THE AS SESSEE. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THAT THE APPEALS OF THE REVENUE ARE NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MI SC. 142/2007-ITJ ITA NOS.3480,3481 & 3482 /AHD/2010 ASST.YEAR 2007-08 & ITA NO.2915/AHD/2009 - AY 2006-07 - 3 - (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BE EN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INC OME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD H AS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOE S NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS. 10 LA KHS. THEREFORE, THE PRESENT APPEALS ARE NOT MAINTAINABLE AND HENCE DISM ISSED. 5. IN THE RESULT, ALL THE FOUR APPEALS FILED BY THE REVENUE ARE DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 28 TH JANUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( ANIL CHATURVEDI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 28/ 01 /2016 (.., .../ T.C. NAIR, SR. PS !'#$#%! / COPY OF THE ORDER FORWARDED TO : ITA NOS.3480,3481 & 3482 /AHD/2010 ASST.YEAR 2007-08 & ITA NO.2915/AHD/2009 - AY 2006-07 - 4 - 1. *+, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. /0/12 3 / CONCERNED CIT 4. 3 ( * ) / THE CIT(A)-XX, AHMEDABAD 5. 4 5 -12 , * 12' , 0 / DR, ITAT, AHMEDABAD 6. 578 9 / GUARD FILE. / BY ORDER, .4* - //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 20.1.16(DICTATION-PAD 3- -PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21.1.16 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.28.1.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 28.1.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER