ITO, Ward-1(1)(2), Ahmedabad V. M/s. Brij Basant Hospitals Pvt.Ltd., Ahmedabad

ITA 3101/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9767 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 13-01-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 04-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIV SEWAK
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.3101/AHD/2015 /BLOCK ASSTT. YEAR: 2010-2011 ITO, WARD-1(1)(2) AHMEDABAD. VS BRIJ BASANT HOSPITALS PVT. LTD. 23, HATKESH SOCIETY DARPAN FIVE ROAD AHMEDABAD 380 014. PAN : AABCB 7677 C %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI SHIV SEWAK, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 13/01/2016 / DATE OF PRONOUNCEMENT: /01/2016 )*/ O R D E R THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINS T THE ORDER OF LD.COMMISSIONER INCOME-TAX (APPEALS)-1, AHMEDABAD D ATED 24.8.2015 PASSED FOR THE ASSTT.YEAR 2010-11. 2. SOLE GRIEVANCE OF THE REVENUE IN THIS APPEAL IS THAT HT ELD.CI(A) HAS ERRED IN LAW IN DELETING THE DISALLOWANCE OF RS.65, 000/- UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVE R, THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS STATING THAT THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO DISMISSED IN VIEW OF RECENT CBDT CIRCULAR NO.21/2015 DATED 10.12.2015 RESTRICTING FILING OF APPEAL BY THE REVE NUE BEFORE THE TRIBUNAL, WHERE TAX EFFECT IS BELOW RS.10 LAKHS, AND THAT THE TAX EFFECT ON THE IMPUGNED ITA NO.3101/AHD/2015 2 ADDITION OF RS.65,000/- IS MUCH BELOW RS.4 LAKHS. T HE LD.DR, HAS NOT CONTROVERTED TO THIS DIRECTION OF THE CBDT CONTAINE D IN THE ABOVE CIRCULAR. 4. I FIND THAT THIS APPEAL WAS PRESENTED ON 4.12.20 15. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PR OHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUN AL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRU CTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, THE ASS ESSED INCOME OF THE ASSESSEE IS OF RS.12,77,142/- AND THE TAX EFFECT ON THE DISP UTED ADDITION OF RS.65,000/- IS LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT A PPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. FURTHER, THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, W HILE HEARING THE APPEALS, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX E FFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INST RUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 15 TH JANUARY, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 15 /01/2016