The ITO, Ward-6(4), Ahmedabad V. M/s. Patel & Sons Family Trust, Ahmedabad

ITA 2994/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9886 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 26-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKESH JHA SR DR
• Assessee Lawyers: P M MEHTA AR WITH G M THAKOR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER ./ ITA NOS. 2993 & 2994/AHD/2015 / ASSESSMENT YEAR: 2011-12 ITO, WARD 3(2)(9) AHMEDABAD .. APPELLANT VS M/S. PATEL & SONS FAMILY TRUST, PATEL VAS, ISANPUR VILLAGE, ISANPUR, AHMEDABAD .. RESPONDENT PAN : AAATP 1814 B REVENUE BY : SHRI RAKESH JHA, SR-DR ASSESSEE(S) BY : SHRI P.M. MEHTA AR WITH G.M. THAKOR / DATE OF HEARING 31/12/2015 /DATE OF PRONOUNCEMENT 05/01/2016 / O R D E R THESE TWO APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST A COMMON ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-3, AHMEDABAD, DATED 19.08.2015, FOR ASSESSMENT YEAR 20 11-12 ONE AGAINST DELETING THE ADDITION MADE BY THE ASSESSING OFFICER AMOUNTING TO RS.18,36,000/- UNDER THE HEAD INCOME FROM BUSINESS & PROFESSION AND ANOTHER AGAINST DELETING THE PENALTY OF RS.6,00,00 0/- LEVIED U/S 271(1)(C) OF THE ACT. 2. BEFORE US, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT BOTH THE PRESENT APPEALS OF THE REVENUE NEED T O BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCU LAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTAT IVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIB ED BY THE AFORESAID CBDT CIRCULAR. (SMC) ITA NOS. 2993 & 2994/AHD/2015 ITO VS. PATEL & SONS FAMILY TRUST AY : 2011-12 2 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED B Y THE REVENUE, I FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF CIT(A) IN DELETING THE ADDITION OF RS.18,36,000/- MADE BY THE ASSESSING OFFICER UND ER THE HEAD INCOME FROM BUSINESS & PROFESSION AND ALSO AGAINST THE DE LETION OF PENALTY OF RS.6,00,000/- MADE BY THE ASSESSING OFFICER U/S 271 (1)(C) OF THE ACT. ON BOTH COUNTS, THE TAX EFFECT OF APPEAL IS BELOW RS.1 0 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT ) DATED 10.12.2015 (CIRCULAR NO.21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX AP PELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS R S.10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTI VELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDIS PUTED FACT THAT THE TAX EFFECT IS LESS THAN RS.10 LACS, I AM OF THE VIEW TH AT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBD T CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEALS OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEALS ARE NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, I DISMISS BOTH THE APPEALS OF R EVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE ARE DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 5TH JANUARY, 2016 AT AHMEDABAD. SD/- ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 05/01/2016 BIJU T., PS (SMC) ITA NOS. 2993 & 2994/AHD/2015 ITO VS. PATEL & SONS FAMILY TRUST AY : 2011-12 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / D R, ITAT, AHMEDABAD 6. (- . / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD