The ITO, Ward-2, Anand V. Shri Gaurang Ramanbhai Patel, Anand

ITA 2955/AHD/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2733 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 29-08-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 11-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: D K PARIKH
• Keywords: Tax effect
• Section: 143(3); 40(a)(ia); 194C

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR, HONBLE VIC E PRESIDENT & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO. 2955/AHD/2016 ( / ASSESSMENT YEAR: 2010-11) ITO WARD-2, ANAND, 2 ND FLOOR, S.P. COMPLEX, NEAR OLD C.K. HALL, MAYFAIR ROAD, ANAND - 388001 / VS. SHRI GAURANG RAMANBHAI PATEL PLOT NO. 9A-2, G.I.D.C. ESTATE, SANGEETHA COMPOUND, V.U. NAGAR, ANAND- 388121 ./ ./ PAN/GIR NO. : ARV PP3 006 H ( APPELLANT /RESPONDENT ) .. ( RESPONDENT /CROSS OBJECTOR ) / APPELLANT BY : SHRI L. P. JAIN, SR. DR. / RESPONDENT BY : D. K. PARIKH, AR / DATE OF HEARING 29/08/2019 !'# / DATE OF PRONOUNCEMENT 29/08/2019 $%/ O R D E R PER PRAMOD KUMAR VICE PRESIDENT: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-4, VADODARA (CIT(A) IN SHORT), DATED 30 .06.2016 ARISING IN THE ASSESSMENT ORDER DATED 23.03.2015 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) R.W.S. 147 OF THE INCO ME TAX ACT, 1961 (THE ACT) IN THE ASSESSMENT YEAR 2010-11. ITA NO.2955/AHD/2016[ITO VS.SHRI GAURANG RAMANBHAI PATEL] A.Y. 2010-11 - 2 - 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READ S AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THE A.O. TO DELETE DISALLOWANCE U/S. 4 0A(3) OF THE ACT, WITHOUT APPRECIATING THAT THE A.O. IN THE ASSESSMENT ORDER CLEARLY RECORDED INSTANCES OF CASH PAYMENT EXCEEDING RS. 20,000/- ON A SINGLE DAY. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. C.I.T. (A) ERRED IN DIRECTING THE A.O. TO DELETE DISALLOWANCE U/S. 40(A)3 OF THE ACT, WITHOUT APPRECIATING THAT DURING THE COURSE OF ASSE SSMENT PROCEEDINGS, THE ASSESSEE DID NOT ESTABLISH BUSINESS EXPEDIENCY OF M AKING PAYMENT IN CASH, IN VIEW OF PROVISION OF SECTION 40(A)3 READ WITH RU LE 6DD OF I.T. ACT. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. C.I.T. (A) ERRED IN DIRECTING THE A.O. TO DELETE DISALLOWANCE U/S. 40(A)(IA) OF THE ACT, WITHOUT APPRECIATING THAT THE ASSESSEES ACT OF AWA RDING WORK OF PROVIDING VEHICLES ON HIRE AMOUNTED TO CONTRACT WITHIN THE ME ANING OF SECTION 194C OF THE ACT THE EXPRESSION WORK CARRIAGE OF GOODS OR P ASSENGERS BY ANY MODE OF TRANSPORT OTHER THAN BY RAILWAYS, AND WITHOUT C OMMENTING ON JUDICIAL DECISIONS RELIED UPON BY THE A.O. IN THE ASSESSMENT ORDER. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. C.I.T. (A) ERRED IN HOLDING THAT THE RATIO OF HONBLE GUJARAT S DECISION IN THE CASE OF SIDDHI VINAYAK TRANSPORT VS. CIT [2013] 362 ITR 72 IS APPLICABLE TO THE PRESENT CASE, WITHOUT APPRECIATING THE LD. CIT (A) IN PARA 3.3.2 OF APPELLATE ORDER HELD THERE WAS UNDOUBTEDLY SUFFICIENT MATERI AL BEFORE THE ASSESSING OFFICER THAT PROVISIONS OF SECTION 40(A)3 AND 40(A) (IA) WERE NOT COMPLIED WITH PARTICULARLY WHEN THE ASSESSING OFFICER HAS NO T MENTIONED ABOUT THESE SECTIONS IN ANY DETAILS IN THE BODY OF (ORIGINAL) A SSESSMENT ORDER. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG 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.17/201 9 DATED 08/08/2019 RELATING TO ENHANCEMENT OF MONETARY LIMI TS IS ALSO APPLICABLE TO ALL PENDING APPEALS. AS PER AFORESAI D CIRCULAR READ WITH INSTRUCTIONS, ALL PENDING APPEALS FILED BY REV ENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION W HERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMI T WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE ITA NO.2955/AHD/2016[ITO VS.SHRI GAURANG RAMANBHAI PATEL] A.Y. 2010-11 - 3 - 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 T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MADHUMITA ROY) (PRAM OD KUMAR) JUDICIAL MEMBER VI CE PRESIDENT AHMEDABAD: DATED 29/08/2019 TANMAY TRUE COPY !' #' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. $ / ASSESSEE 3. ) *+ , / CONCERNED CIT 4. ,- / CIT (A) 5. 012 33*+, *+#, 56$)$ / DR, ITAT, AHMEDABAD 6. 289 : / GUARD FILE. BY ORDER / $% , ;/ 5 *+#, 56$)$ < THIS ORDER PRONOUNCED IN OPEN COURT ON 29/08/2019