The DCIT, Circle-3(3), Ahmedabad V. Shri Manish Raichand Shah, Ahmedabad

ITA 294/AHD/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2847 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 03-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V.K. SINGH
• Keywords: Tax effect; Tax effect; Set aside
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Ms. Annapurna Gupta, Accountant Member And Ms. Madhumita Roy, Judicial Member The DCIT, Circle-3(3), Ahmedabad (Appellant) Vs Shri Manish R. Shah, B-11, West End Park, Nr. Gurudwara, S.G. Road, Ahmedabad- 380052 PAN: AVUPS3273N Appellant by : Shri V.K. Singh, Sr. D.R. Respondent by : Shri P.F. Jain, C.A. Date of hearing : 05-05-2022 Date of pronouncement : 06-05-2022 आदेश/ORDER PER BENCH:- The present appeal has been filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals)-7, Ahmedabad, (in short referred to as CIT(A)), dated 31-01-2020, u/s. 250(6) of the Income Tax Act, 1961(hereinafter referred to as the “Act”) pertaining to Assessment Year (A.Y) 2009-10. 2. The grounds of appeal raised by the Revenue are read as under:- ITA No. 294/Ahd/2020 Assessment Year 2009-10 I.T.A No. 294/Ahd/2020 A.Y. 2009-10 Page No DCIT vs. Shri Manish Raichand Shah 2 1. The Ld.CIT(A) has erred in law and on facts deleting the addition of Rs. 86,47,000/- made by Assessing Officer on account of disallowance made u/s 40(a)(ia) of the Act. 2. On the facts and circumstances of the case, Ld CIT(A) ought to have upheld the order of the Assessing Officer. 3. It is, therefore, prayed that the order of LdCIT(A) may be set aside and that of the Assessing Officer be restored. 3. At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. It is inter alia noticed that the CBDT vide Instruction No. F. No. 279/Misc/M-93/2018-ITJ dt. 20/08/2019 has observed that Circular No.17/2019 dated 08/08/2019 relating to enhancement of monetary limits is also applicable to all pending appeals. As per aforesaid Circular read with instruction, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine. 4. The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to I.T.A No. 294/Ahd/2020 A.Y. 2009-10 Page No DCIT vs. Shri Manish Raichand Shah 3 seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 06 -05-2022 Sd/- Sd/- (MADHUMITA ROY) (ANNAPURNA GUPTA) JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER Ahmedabad : Dated 06/05/2022 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद