The DCIT, Circle-1(1)(2), Ahmedabad V. Claris Life Sciences Ltd., Ahmedabad

ITA 3215/AHD/2014

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3142 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 12-03-2020
• Assessment Year: 2007-2008
• Appeal Filed On: 05-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N SOPARKAR
• Keywords: Tax effect
• Section: 271(1)(c); 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.3215/AHD/2014 / ASSTT.YEAR : 2007-08 DCIT, CIR.1(1)(2) AHMEDABAD. VS. CLARIS LIFE SCIENCES LTD. CORPORATE TOWER NR.PARIMAL CROSSING ELLISBRIDGE AHMEDABAD 380 006. PAN : AAACC 6366 Q REVENUE BY : SHRI DILIPKUMAR, SR.DR ASSESSEE BY : SHRI S.N. SOPARKAR, SR.ADV. / DATE OF HEARING : 12/03/2020 ! / DATE OF PRONOUNCEMENT: 12/03/2020 / O R D E R PER RAJPAL YADAV, VICE-PRESIDENT PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF REVEN UE AGAINST THE ORDER OF LD.CIT(A)-VI, ORDER DATED 19.9.2014 PASSED FOR T HE ASSTT.YEAR 2007-08. 2. SOLE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT (A) HAS ERRED IN DELETING PENALTY OF RS.45,12,549/- IMPOSED BY THE A O UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE OUTSET SU BMITTED THAT QUANTUM OF PENALTY IN EACH CASE IS LESS THAN RS.50. 00 LAKHS, WHICH HAS BEEN DELETED BY THE LD.CIT(A). HE SUBMITTED THAT B Y VIRTUE OF RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTM ENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBUNAL W HERE TAX EFFECT OR QUANTUM OF PENALTY IS BELOW RS.50 LAKHS. THIS INST RUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. PER C ONTRA, THE LD.DR DID NOT ITA NO.3215/AHD/2014 2 DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCULAR A ND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT QUANTUM OF PENALTY IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBD T CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, W E ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT A ND/OR QUANTUM OF PENALTY IS MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE A CT. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE T O LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 12 TH MARCH, 2020 AT AHMEDABAD. S D / - (WASEEM AHMED) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT