The ITO, Ward-2(2), Bharuch V. Shri Kaluram Magaji Modi, Ankleshwar

ITA 297/AHD/2016

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 2240 (ITAT-SURAT)
• Duration Of Justice: 2 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 05-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P S CHAUDHARY
• Keywords: Audit objection; Tax effect
• Section: 143(3)

Judgement Text

ITO, WARD-2(2), SURAT VS. KALURAM MAGAJI MODI /ITA NO.297/AHD/2016/SRT/AY.2009-10 PAGE 1 OF 3 , , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT . . , . . , BEFORE SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER . . ./I.T.A NO.297/AHD/2016/SRT /ASSESSMENT YEAR : 2009-10 THE INCOME TAX OFFICER, WARD-2(2), SURAT. VS. KALURAM MAGAJI MODI, PLOT NO.1401/4/6, 5, RIDDHI SIDDHI AVENUE, NEAR LITTLE HUT CHOKDI, ANKLESHWAR 393 002, DIST.BHARUCH [PAN: ADEPM 3871 A] APPELLANT /RESPONDENT /ASSESSEE BY NONE /REVENUE BY SHRI P.S.CHAUDHARY SR.DR / DATE OF HEARING: 06 .0 9 .2018 /PRONOUNCEMENT ON 06 .0 9 .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 TAX (APPEALS)-3, VADODARA(IN SHORT THE CIT (A)) DATED 26.11.2015 PERTAINING TO ASSESSMENT YEAR 2009-10 WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-4, BHARUCH(IN SHORT THE AO) DATED 28.03.2014 UNDER SECTION 143(3) R.W.S. 147 OF INCOME TAX ACT,1961 (IN SHORT THE ACT). ITO, WARD-2(2), SURAT VS. KALURAM MAGAJI MODI /ITA NO.297/AHD/2016/SRT/AY.2009-10 PAGE 2 OF 3 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 11.07.2018 [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 SUPERSEDES 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 ASSETS/BANK ACCOUNTS, ETC. 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 ITO, WARD-2(2), SURAT VS. KALURAM MAGAJI MODI /ITA NO.297/AHD/2016/SRT/AY.2009-10 PAGE 3 OF 3 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 CASE 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 06-09-2018. SD/- SD/- ( .. /C.M. GARG) ( .. / O.P.MEENA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER / SURAT, DATED : 6 TH SEP , 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, SURAT