The DCIT, Circle-3(2), Surat V. Shri Labhubhai Savjibhai Kasodaria, Surat

ITA 3005/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9852 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 27-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKESH JHA SR DR
• Assessee Lawyers: M K PATEL
• Keywords: Sale consideration of property below Jantri Value; Tax effect
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER ./ ITA NO. 3005/AHD/2015 / ASSESSMENT YEAR: 2007-08 DCIT, CIRCLE 3(2), SURAT .. APPELLANT VS SHRI LABHUBHAI SAVJIBHAI KASODARIA, 17, JALARAM SOCIETY, OPP. PANDOL INDUSTRIAL ESTATE, VED ROAD, SURAT .. RESPONDENT PAN : ACAPK 1797 Q REVENUE BY : SHRI RAKESH JHA, SR-DR ASSESSEE(S) BY : SHRI M.K. PATEL AR / DATE OF HEARING 3 0 /12/2015 /DATE OF PRONOUNCEMENT 06 / 01 / 201 6 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-3, SUR AT DATED 24.08.2015 FOR ASSESSMENT YEAR 2007-08, ON THE FOLLO WING GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY LEVIED U /S 271(1)(C) OF THE ACT AMOUNTING TO RS.8,73,342/- ON ADD ITION MADE ON ACCOUNT OF UNDISCLOSED STCG. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS FAILED TO APPRECIATE THE FACT THAT THE ASS ESSEE HAD NOT FULLY AND TRULY DISCLOSED THE LTCG IN HIS RETU RN OF INCOME AS PER PROVISION U/S 50C OF THE ACT. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF TH E AO. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A) , SURAT MAY BE SET ASIDE AND THAT OF THE AOS MAY BE RESTORED. 2. BEFORE ME, AT THE OUTSET, LD. AUTHORIZED REPRESENTATIV E SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO B E (SMC) ITA NO. 3005/AHD/2015 DCIT VS. SHRI LABHBHAI SAVJIBHAI KASODARIA AY 2007-08 2 DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS TH AN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISE D BY THE REVENUE, I FIND THAT REVENUE IS AGGRIEVED BY THE DELE TION OF PENALTY OF RS.8,73,342/- LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) ON ADDITION MADE ON ACCOUNT OF UNDISCLOSED STCG AND THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT O F CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCUL AR NO.21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RE LIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS.10 LACS AND IT FU RTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PEND ING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPU TED 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 CB DT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTM ENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCO UNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, I DISMISS THE APPE AL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 6TH JANUARY, 2016 AT AHMEDABAD. SD/- ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 06/01/2016 BIJU T., PS (SMC) ITA NO. 3005/AHD/2015 DCIT VS. SHRI LABHBHAI SAVJIBHAI KASODARIA AY 2007-08 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / DR, ITAT, AHMEDABAD 6. (- . / GUARD FILE. / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD