The ITO, Ward-3(1), JAMNAGAR V. Shri Mohanlal K. Jain, JAMNAGAR

ITA 344/RJT/2015

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2142 (ITAT-RAJKOT)
• Duration Of Justice: 5 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S S RATHI
• Keywords: Tax effect; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER ./I.T.A. NO. 344/RJT/2015 ( / ASSESSMENT YEAR: 2006-07) ITO WARD-3(1), JAMNAGAR / VS. SHRI MOHANLAL K. JAIN, PROP. OF ILLES EXPORT & REENA METAL SYNDICATE, C-2/32, GIDC, STU, JAMNAGAR ./ ./PAN/GIR NO. : ABRPJ8641G ( /APPELLANT ) .. ( / RESPONDENT ) / RESPONDENT BY : SHRI S. S. RATHI, SR. DR / APPELLANT BY: SHRI SAGAR SHAH, AR !' /DATE OF HEARING 01/12/2020 #$!' / DATE OF PRONOUNCEMENT 03/12/2020 %& /O R D E R PER BENCH: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2006-07, ARISE FROM ORDER OF THE CIT(A), JAMNAGAR DATED 09.04.2015, IN PROCEEDIN GS UNDER SECTION 143(3) R.W.S. 254 OF THE INCOME TAX ACT, 1961; IN SHORT T HE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. THE LD. CIT(A)HAS ERRED IN LAW AS WELL ON FACTS IN ADOPTING THE GP @3.5% AS AGAINST THE GP TAKEN BY THE AO @32.35%. 2. ON THE BASIS OF THE FACTS AND CIRCUMSTANCES OF T HE CASE, THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF TH E ASSESSING OFFICER. 3. THAT THE REVENUE CRAVES LEAVES TO ADD, AMEND, AL TER OR WITHDRAW ANY GROUND OF APPEAL. ITA NO. 344/RJT/2015 A.Y. 2006-07 2 4. IT IS THEREFORE PRAYED THAT THE ORDER OF THE CIT (A), JAMNAGAR MAY KINDLY BE SET ASIDE AND THAT OF ASSESSING OFFIC ER BE RESTORED. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFEC T ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EX CEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIR ED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (PRADIP KUMAR KEDIA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD: DATED 03/12/2020 TANMAY, SR. PS TRUE COPY TRUE TRUE COPY THIS ORDER PRONOUNCED IN OPEN COURT ON 03/12/2020 ITA NO. 344/RJT/2015 A.Y. 2006-07 3 / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. + ,! -! / CONCERNED CIT 4. -!- / CIT (A) 5. 123 ! ,, ' ,, 56%+% / DR, ITAT, AHMEDABAD 6. 38 9 / GUARD FILE. BY ORDER / %& , :/5 (DY./ASSTT.REGISTRAR) ' ,, $ /ITAT, RAJKOT 1.DATE OF DICTATION ON 01.12.2020 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 01.12.2020 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. .12.2020 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .12.2020 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 03.12.2020 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 04.12.2020 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER