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

ITA 3424/AHD/2014

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2396 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-09-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 19-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3); 201; 144C; 268A; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I AMARJIT SINGH , ACCOUNTANT MEMBER AND MS. MADHUMITA ROY , JUDICIAL MEMBER THE DY. CIT(OSD) , RANGE - 1 , AHMEDABAD (APPELLANT) VS M/S. CLARIS LIFE SCIENCE S LTD. CORPORATE TOWER, NR. PARIMAL CROSSING, ELLISBRIDGE, AHMEDABAD - 380006 PAN:AAACC6366Q (RESPONDENT) REVEN UE BY : S H RI RAJDEEP SINGH , SR. D . R. ASSESSEE BY: MS. URVASHI SHODHAN , A.R. DATE OF HEARING : 20 - 11 - 2 019 DATE OF PRONOUNCEMENT : 26 - 11 - 2 019 / ORDER P E R : AMARJIT SINGH, ACCOUNTANT MEMBER : - THESE TWO APPEALS FILED BY REVENUE FOR A. Y. 2008 - 09 & 2009 - 10 , ARI SE FROM ORDER OF THE CIT(A) - 6, AHMEDABAD DATED 19 - 07 - 2 012 & 30 - 10 - 2014 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 144C OF THE INCOME TAX ACT, 196 1; IN SHORT THE ACT . 3. AT THE OUTSET, AFTER GOING THROUGH THE GROUNDS OF APPEAL S AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WAS RAISED BY THE BENCH AS TO I T A NO S . 2052 / A HD/20 12 & 34 2 4/AHD/20 1 4 A SS ESSMENT YEAR 2008 - 09 & 2009 - 10 I.T.A NO S . 2052 /AHD/20 12 & 3424/AHD/2014 A.Y. 2008 - 09 & 2009 - 10 PAGE NO DY. CIT VS. CLARIS LIFE SCIENCES LTD. 2 APPLICABILITY AND MAINTAINABILITY OF THE APPEAL S FILED BY THE REVENUE IN VI EW OF RECENT CBDT CIRCULAR NO. 17/2019 DATED 08 - 08 - 2019 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENUE WH ERE THE TAX EFFECT IS BELOW RS.5 0 LAKHS, THE LD. DR DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WITH LAW. 4. WE FIND THAT BOTH THE APPEAL S O F THE REVENUE ARE PRESENTED ON 11.9.2012 & 19 - 12 - 2014 . ON 8.8.2019 THE CBDT HAS ISSUED INSTR UCTIONS BEARING NO. 17 OF 2019 UNDER FILE N O. F. NO. F. NO. 279/MISC. 142/2007 - ITJ(PT.) PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL S TO THE TRIBUNAL 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.5 0 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, TAX EFFECT ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH AP PEAL IS FILED, IS LESS THAN RS.5 0 LAKHS. FURTHER, THE CASE OF THE REVENUE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL S OF THE REVENUE DESERVE TO BE DISMISSED. THEY ARE ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE - VERIFICATION AT THE END OF THE AO IT COMES TO THE NOTICE THAT TH E TAX EFFECT IS MORE OR REVENUE S 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. SUCH APPLICATION SHOULD BE FILED I.T.A NO S . 2052 /AHD/20 12 & 3424/AHD/2014 A.Y. 2008 - 09 & 2009 - 10 PAGE NO DY. CIT VS. CLARIS LIFE SCIENCES LTD. 3 WITHIN THE TIME PERIOD PRESCRI BED IN THE ACT. IN VIEW OF THE ABOVE, BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT O N 26 - 11 - 201 9 SD/ - SD/ - ( MADHUMITA ROY ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 26 /11 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,