The ITO, Ward-2, V. M/s. Sangam Transport Corporation,

ITA 319/RJT/2005

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9061 (ITAT-RAJKOT)
• Duration Of Justice: 12 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-05-2017
• Assessment Year: 2001-2002
• Appeal Filed On: 17-03-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: USHA N SHROTE
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] LOZJH VEJTHR FLAG] YS[KK LNL; ,OA EGKOHJ IZLKN] U;K F;D LNL; DS LE{KA LOZJH VEJTHR FLAG] YS[KK LNL; ,OA EGKOHJ IZLKN] U;K F;D LNL; DS LE{KA LOZJH VEJTHR FLAG] YS[KK LNL; ,OA EGKOHJ IZLKN] U;K F;D LNL; DS LE{KA LOZJH VEJTHR FLAG] YS[KK LNL; ,OA EGKOHJ IZLKN] U;K F;D LNL; DS LE{KA (BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ./ I.T.A. NO.319/RJT/2005 ( / ASSESSMENT YEAR : 2001-02) INCOME TAX OFFICE WARD-2, GANDHIDHAM V/S M/S. SANGAM TRANSPORT CORPORATION GANDHIDHAM (APPELLANT) (RESPONDENT) PAN: AAHCS 8396 M APPELLANT BY : MS. USHA N. SHROTE, SR. D .R. RESPONDENT BY : SHRI VIMAL DESAI, A.R. ( )/ ORDER DATE OF HEARING : 03/05/2017 DATE OF PRONOUNCEMENT : 04/05/2017 PER MAHAVIR PRASAD, JUDICIAL MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF LD. CIT(A)-II, RAJKOT DATED 23/12/2004 PERTAINING TO A.Y. 2001-02. ITA NO. 319/RJT/2005 . A.Y. 2001-02 2 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE READS AS U NDER:- (I) THE LEARNED CIT(A) HAS ERRED IN LAW AND ON THE FACT S IN HOLDING THAT THE ISSUE OF THE NOTICE U/S.148 IS BAD IN LAW AND IN QUASHING THE ASSESSMENT FRAMED ON THE BASIS OF THE NOTICE. (II) THAT THE LEARNED CIT(A) ERRED IN LAW AND ON FACT I N DELETING THE ADDITION OF RS.21,76,000/- MADE ON ACCOUNT OF UNEXP LAINED CAPITAL INTRODUCED BY THE PARTNERS.. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUB MITTED THAT THE APPEAL OF THE REVENUE NEEDS TO BE 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 THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS.10 LACS, THEN THAT OR DER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE ITA NO. 319/RJT/2005 . A.Y. 2001-02 3 EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LAC S. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN OPEN COURT ON 04/05/2017 SD/- SD/- (AMARJIT SINGH) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: 04/05/2017 PRITI COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) II, RAJKOT 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,RAJKOT TRUE COPY