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

ITA 355/RJT/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6616 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 24-03-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 31-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH PANDE
• Assessee Lawyers: ANKIT GOKANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE SHRI S.V. MEHROTRA , ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY , MEMBER ITA NO. 355 / RJT /201 2 : ASS T. YEAR : 2007 - 08 ACIT, CIRCLE - 2, JAMNAGAR (APPELLANT) VS HIRAVATI INTERNATIONAL PVT. LTD. JAWARNAKA, PORBANDAR PAN : AAACH5374F (RESPONDENT) APPELLANT BY : SHRI YOGESH PANDE, DR RESPONDENT BY : SHRI ANKIT GOKANI, CA DATE OF HEARING : 2 4 /0 3 /201 7 DATE OF PRONOUNCEMENT : 24 /0 3 /201 7 O R D E R PER K. NAR A SIMHA CHARY, MEMBER, JM : THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF CIT(A), JAMNAGAR VIDE APPEAL NO. CIT(A) - II/JAM/59/11 - 12/894 DATED 26.3.2012 . 2. AT THE OUTSET, IT WAS POINTED OUT BY THE LD. AR THAT THE APPEAL IS HIT BY THE CBDT CIRCULAR NO . 21/2015 DATED 10.12.2015 AS THE PENALTY AMOUNT INVOLVED IN THIS CASE IS RS. 4,57,100/ - AND TAX EFFECT ON THE DISPUTED ADDITION BEFORE US IS RS. 4,57,100 / - , WHICH IS LESS THAN RS. 10 LACS. 3. AFTER PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THA T THE ADDITIONS DISPUTED BEFORE US IS BELOW THE TAX EFFECT LIMIT PRESCRIBED BY 2 ITA NO. 355 /RJT/201 2 HIRAVATI INTERNATIONAL PVT. LTD. CBDT VIDE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 FOR PREFERRING APPEALS BEFORE TRIBUNAL BY THE REVENUE. ON PERUSAL OF THE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 AND THE MATERIALS AVAILABLE ON RECORD, LD. DR COULD NOT POINT OUT WHETHER THIS CASE FALLS UN DER ANY OF THE EXCEPTION AS PROVIDED IN THE CIRCULAR DESPITE SPECIFIC OPPORTUNITY WAS GIVEN, DOES NOT FALL UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR, AS THIS IS COVERED. WE ALSO FIND THAT THE CIRCULAR MAKES IT VERY CLEAR THAT THE REVIS ED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. WE FIND THAT THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. THIS POSITION HAS BEEN CONFIRMED BY THE HON BLE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC). HENCE, WE HOLD THAT THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.21 / 2015 DATED 10.12.2015. ACCORDINGLY, THIS BEING A LOW TAX EFFECT CASE, WE DISMISS THIS APPEAL OF REVE NUE IN LIMINE , AS UNADMITTED, WITHOUT GOING INTO THE MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MARCH, 2017. S D S D / - D/ - SD / - / - ( S.V. MEHROTRA ) ACCOUNTANT MEMBER ( K. NARASIMHA CHARY ) JUDICIAL MEMBER RAJKOT , DATE : 2 4 T H MARCH , 201 7 *SSL* 3 ITA NO. 355 /RJT/201 2 HIRAVATI INTERNATIONAL PVT. LTD. COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, RAJKOT 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, RAJKOT