The DCIT, Circle-1, Surat V. M/s. Doshi Tubes Pvt.Ltd., Surat

ITA 3279/AHD/2011

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2402 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-02-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 29-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.3279 AND 3280/AHD/2011 / ASSTT. YEAR: 2002-2003 AND DCIT, CIR.1 SURAT. VS M/S.DOSHI TUBES PVT.LTD. 48-51, ROAD NO.5 UDHNA UDYOGNAGAR UDHNA, SURAT. PAN : AABCD 6432 F ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI NARENDRA SINGH, SR.DR ASSESSEE BY : SHRI HARDIK VORA, AR / DATE OF HEARING : 29/02/2016 / DATE OF PRONOUNCEMENT: 01 /03/2016 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THESE ARE TWO APPEALS BY THE REVENUE ONE IS QUANT UM AND OTHER IS IMPOSITION OF PENALTY UNDER SECTION 271(1)(C) AGA INST THE ORDERS OF THE LD.CIT(A)-I, SURAT OF EVEN DATED 7.9.2011. BOTH TH ESE APPEALS ARE DISPOSED OF BY THIS COMMON ORDER. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT APPEALS FILED BY THE REVENUE ARE HIT BY THE LATEST CBDT CIR CULAR RESTRICTING THE FILING OF THE APPEAL BEFORE THE TRIBUNAL BY THE REVENUE, W HERE THE TAX EFFECT IS BELOW RS.10 LAKHS, AND AS SUCH THESE APPEALS ARE LI ABLE TO BE DISMISSED IN ITA NO.3279 AND 3280/AHD/2011 (2 APPEALS) 2 LIMINE . THE LD.DR HAS NOT CONTROVERTED TO THIS SUBMISSIO N OF THE LD.COUNSEL FOR THE ASSESSEE OR DISPUTED THE CBDT CIRCULAR CITE D BY THE ASSESSEE. 4. WE FIND THAT BOTH THESE APPEALS WERE PRESENTED O N 29.12.2011. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFEC T 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 INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRE SENT CASE, THE ASSESSED INCOME OF THE ASSESSEE IS OF RS.12,19,650/- AND THE AMOUNT OF PENALTY IMPOSED UNDER SECTION 271(1)(C) OF THE ACT BY THE A O WAS OF RS.4,35,415/-. BOTH THESE AMOUNTS ARE DELETED BY THE LD.CIT(A) BY THE IMPUGNED ORDER. THE TAX EFFECT ON THE IMPUGNED ADDITION AND THE PENALTY IS LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPEALS DESERVE TO BE DISMIS SED AND TREATED TO BE FILED BEING IN VIOLATION OF CBDT INSTRUCTIONS. FURTHER, THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INST RUCTIONS. IT IS FURTHER OBSERVED THAT IN CASE, ON RE-VERIFICATION AT THE EN D OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITH IN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WI LL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER IN ACCORDANCE WITH LAW. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE COURT ON 1 ST MARCH, 2016 AT AHMEDABAD. SD/- SD/- ( MANISH BORAD ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/03/2016