The ACIT, Circle-2, JAMNAGAR V. Hiravati Marine Products Pvt. Ltd., PORBANDAR

ITA 351/RJT/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9053 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 15-05-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 31-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: ANKIT GOKANI
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT (CONDUCTED THROUGH E - COURT AT AHMEDAB A D) BEFORE SHRI MAHAVIR PRASAD , JUDICIAL MEMBER AND SHRI MANISH BORAD , ACCOUNTANT MEMBER ./ ITA NO.351 / RJT /2012 / ASSTT. YEAR: 2006 - 2007 A CIT, CIRCLE - 2 , JAMNAGAR VS . HIRAVATI MARINE PRODUCTS PVT. LTD., JAWARNAKA, PORBABDAR. PAN: AABCH2110C (APPLICANT) (RESPONENT) REVENUE BY : SHRI AVINASH KUMAR, SR.DR ASSESSEE BY : SHRI ANKIT GOKANI, AR / DATE OF HEARING : 15 / 0 5 / 201 7 / DATE OF PRONOUNCEMENT: 16 / 05 /201 7 / O R D E R PER MANISH BORAD , ACCOUNTANT MEMBER : THIS APPEAL OF REVENUE FOR A.Y.2006 - 07 IS DIRECTED AGAINST THE ORDER OF LEARNED COMMI SSIONER OF INCOME TAX(APPEALS), JAMNAGAR (IN SHORT, LD .CIT(A)) ARISING OU T OF ORDER U/S.271(1)(C ) OF THE INCOME TAX ACT,1961 (HEREIN AFTER RE FERRED TO AS ACT) FRAMED ON 31 /03 /2011 BY ACIT, CIRCLE - 2 , JAMNAGAR . 2. REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. THE CIT(A) ERRED IN LAW AND IN FACTS IN DELETING THE PENALTY LEVIED OF RS.6,73,500/ - U/S.271(1)(C) OF THE ACT . ITA NO. 351/RJT/2012 A.Y.200 6 - 07 2 2. THE CIT(A) ERRED IN LAW AND IN FACTS IN HOLDING THAT DECISION OF APEX COURT IN TH E CASE OF RELIANCE PETRO PRODUCTS REPORTED IN 322 ITR 158 IS APPLICABLE IN THE CASE AT HAND. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4. IT IS THEREFORE PRAYED THAT THE ORDER OF THE LD.CIT(A) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 5. THAT THE REVENUE CRAVES LEAVE TO ADD, AMEND, ALTER OR WITHDRAW ANY GROUNDS OF APPEAL. 3 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND GOING THROUGH THE FACTS OF THE CASE, W E FIND THAT THE REVENUE HAS FILED THIS APPEAL ON 31 . 05 .2012 . ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBITING IT S SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL 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.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EF FECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, THE TAX EFFECT WOULD BE LESS THAN RS.10 LAKHS. THEREFORE, PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF THE ABOVE C BDT INSTRUCTION. IT IS DISMISSED. 4 . IT IS FURTHER OBSERVED THAT ON RE - VERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. ITA NO. 351/RJT/2012 A.Y.200 6 - 07 3 5 . IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 16 TH MAY , 201 7 AT AHMEDABAD. SD/ - SD/ - ( MAHAVIR PRASAD ) JUDICIAL MEMBER ( MANISH BORAD ) ACCOUNTANT MEMBER TRUE CO PY AHMEDABAD; DATED 16 / 05 /201 7 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , / DR, ITAT, 6. / GUARD FILE . / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD