The Assistant Commr. of Income Tax, Morbi Circle, RAJKOT-GUJARAT V. Shri Kishorbhai G. Patel, Morbi

ITA 319/RJT/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0155 (ITAT-RAJKOT)
• Duration Of Justice: 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 26-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [ CONDUCTED THROUGH E-COURT AT AHMEDABAD ] .., ! '#$%,#&#'' BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER SL. NO(S) ITA NO(S) ASSESSMENT YEAR(S) APPEAL(S) BY APPELLANT VS. RESPONDENT APPELLANT RESPONDENT 1. 313/RJT/2016 2007-08 THE ACIT MORBI CIRCLE MORBI SH.MANOJBHAI G.PATEL 2- PRAN NAGAR RAVAPAR ROAD MORBI PAN:ADAPP 3356R 2. 314/RJT/2016 2008-09 -DO- -DO- 3. 315/RJT/2016 2009-10 -DO- -DO- 4. 316/RJT/2016 2007-08 THE ACIT MORBI CIRCLE MORBI SH.MANISHBHAI G.PATEL -ADDRESS SAME- PAN:ADAPP 3353L 5. 317/RJT/2016 2008-09 -DO- -DO- 6. 318/RJT/2016 2009-10 -DO- -DO- 7. 319/RJT/2016 2008-09 THE ACIT MOBRI CIRCLE MORBI SH. KISHORBHAI G.PATEL -ADDRESS SAME- PAN ADAPP 3352 M REVENUE BY : SHRI D.R. CHHATRE, SR.DR ASSESSEES BY : WRITTEN SUBMISSION ! +,& / DATE OF HEARING 21/09/2016 -. +,& / DATE OF PRONOUNCEMENT 21/09/2016 ITA NO.313 TO 319 /RJT/2016 ACIT VS. SH.MANOJBHAI G.PATEL & ORS. ASST.YEARS 2007-08 TO 2009-10 - 2 - #/ O R D E R PER BENCH: THIS BUNCH OF CAPTIONED APPEALS BY THE REVENUE I N THE CASE OF THREE DIFFERENT ASSESSEES ARE DIRECTED AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX(APPEALS)-3, RAJKOT DATED 30/06/2016 & 15/06/2016 RESPECTIVELY FOR AYS 2007-08 TO 2009-10. A TABULAR STATEMENT OF TAX DEMAND WHICH IS SUBJECT MATTER OF APPEALS ARE NOTED HEREUNDER:- SL.NO. ITA NO(S). ASSTT.YEAR NAME OF ASSESSEE(S) AMOUNT INVOLVED (RS.) 1. ITA NO.313/RJT/16 2007-08 SH.MANOJBHAI G.PATEL 2,01,082/- 2. ITA NO.314/RJT/16 2008-09 -DO- 6,56,448/- 3. ITA NO.315/RJT/16 2009-10 -DO- 9,43,432/- 4. ITA NO.316/RJT/16 2007-08 SH.MANISHBHAI G.PATEL 2,16,758/- 5. ITA NO.317/RJT/16 2008-09 -DO- 6,70,464/- 6. ITA NO.318/RJT/16 2009-10 -DO- 9,86,750/- 7. ITA NO.319/RJT/16 2008-09 SH.KISHORBHAI G.PATEL 9,42,920/- 2. ALL THESE APPEALS WERE HEARD TOGETHER AND DISP OSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. ITA NO.313 TO 319 /RJT/2016 ACIT VS. SH.MANOJBHAI G.PATEL & ORS. ASST.YEARS 2007-08 TO 2009-10 - 3 - 3. THE REVENUE HAS RAISED THE FOLLOWING COMMON GRO UNDS OF APPEALS:- EXTRACTED FROM ITA NO.313/RJT/16 FOR AY 2007-08 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD.CIT(A) HAS ERRED IN ANNULLING THE REASSESSMENT W ITHOUT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE . 2. WHETHER THE LD.CIT(A) SHOULD HAVE NOT FOLLOWED THE DECISION OF HONBLE HIGH COURT IN TAX APPEAL NOS.632 TO 637 OF 2016 ON 29/06/2016 IN THE CASE OF VRUNDAVAN CERAMIC PVT.LTD ., AS THE FACTS IN THIS CASE ARE ALMOST SIMILAR? 3. ANY OTHER GROUND THAT THE REVENUE MAY RAISE BEFORE OR DURING THE PROCEEDING BEFORE THE HONBLE ITAT. 4. THE LD.AR OF THE ASSESSEE POINTED OUT BY WAY OF WRITTEN SUBMISSIONS THAT THE APPEALS OF THE REVENUE ARE NO T MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT AND, THEREFORE, LIABLE TO BE DISMISSED. THE LD. SR.D.R. FAIRLY ADMITTED THAT THE TAX EFFECT ON THE IMPUGNED ADDITIONS IN EACH APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY T HE CBDT CIRCULAR OF 10/12/2015 BEARING NO. 21 OF 2015. 5. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI ALS AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED B Y THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE CIRCULAR OF C ENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10/12/2015 (CIRCULAR NO. 21 OF 2 015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF G IVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFEC T, EXCLUDING INTEREST ITA NO.313 TO 319 /RJT/2016 ACIT VS. SH.MANOJBHAI G.PATEL & ORS. ASST.YEARS 2007-08 TO 2009-10 - 4 - EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS ALSO. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD POINTED OUT BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOU LD 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, WE DISMISS THE ALL THE APPEALS OF REVENUE WITHOUT E XPRESSING ANY OPINION ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR AN Y REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN T O THE REVENUE TO SEEK REVIVAL OF THE APPEALS. 6. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AR E DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 21/09/2016 SD/- SD/- .. ! '#$% () (#&) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 21/ 09 /2016 ..,.../ T.C. NAIR, SR. PS ITA NO.313 TO 319 /RJT/2016 ACIT VS. SH.MANOJBHAI G.PATEL & ORS. ASST.YEARS 2007-08 TO 2009-10 - 5 - / COPY OF THE ORDER FORWARDED TO : 1. 34 / THE APPELLANT 2. 534 / THE RESPONDENT. 3. 6 , ! 7, / CONCERNED CIT 4. ! 7, ( ) / THE CIT(A)-3, RAJKOT 5. 9: , , , /DR,ITAT,RAJKOT 6. %E / GUARD FILE. / BY ORDER, 59, , //TRUE COPY// / ( DY./ASSTT.REGISTRAR) !', / ITAT, RAJKOT 1. DATE OF DICTATION .. 21.9.16 (COVERED CASE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .. 21.9.16 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 21.9.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 21.9.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER