The Dy. Commr. of Income Tax, Cir.-1(2), RAJKOT-GUJARAT V. Shri HHM Jyotindrasinhji V. Jadeja, GONDAL

ITA 359/RJT/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9079 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 17-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Assessee Lawyers: D M RINDANI AR
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [ CONDUCTED THROUGH E-COURT AT AHMEDABAD ] BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.359/RJT/2015 ( / ASSESSMENT YEAR : 2011-12) DCIT CIRCLE-1(2) RAJKOT / VS. SHRI HHM JYOTINDRASINHJI V.JADEJA DARBARGADH PALACE GONDAL ./ ./ PAN/GIR NO. ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI C.S. ANJARIA, SR.DR ! / RESPONDENT BY : SHRI D.M. RINDANI, A.R. ' #$% ! & / DATE OF HEARING 03/04/2017 '( ! & / DATE OF PRONOUNCEMENT 05/ 04/2017 / O R D E R PER PRADIP KUMAR KEDIA, AM : THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-I, RAJKO T [CIT(A) IN SHORT] DATED 11/05/2015 FOR THE ASSESSMENT YEAR (AY) 2011-12. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA D AS UNDER:- ITA NO.359/RJT/ 205 DCIT VS. SHRI HHM JYOTINDRASINHJI V.JADEJA ASST.YEAR 2011-12 - 2 - 1) THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN NOT APPRECIATING THE FACTUAL AND LEGAL MATRIX FOR THE ADDITION MADE OF RS.23,07,087/- ON ACCOUNT OF LONG TERM CAPITAL GAIN . 2. THE LD.CIT(A) HAS ERRED ON FACTS IN LAW IN NOT DECIDING THE ISSUE ON MERIT BUT ONLY RELYING UPON THE EARLIER YE ARS ORDER AS ALSO THE ORDER PASSED IN RESPECT OF ANOTHER ASSESSE E. 3. THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN NOT APPRECIATING THE FACT THAT, THERE CAN NEVER BE NIL COST OF ACQUI SITION AND WHEN CAPITAL GAIN ARISES ON TRANSFER OF ASSETS LIKE GOOD WILL, TENANCY RIGHTS, STATE CARRIAGE PERMITS AND HEIR LOOMS ETC, DEFINITELY ARISES ON LAND AND INTENTION OF THE LEGISLATURE IS TO GIVE WIDEST INTERPRETATION REGARDING TRANSFER OF ASSETS AND APP LICABILITY OF CAPITAL GAIN. 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 CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID CIRCULA R, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A ME ASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS RS.10 LAKHS. IN THE INSTANT CASE, T HE TAX EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STATED TO B E LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE D ISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE ITA NO.359/RJT/ 205 DCIT VS. SHRI HHM JYOTINDRASINHJI V.JADEJA ASST.YEAR 2011-12 - 3 - TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE COURT ON 05/ 04/20 17 AT AHMEDABAD. SD/- SD/- ( MAHAVIR PRASAD) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD ; DATED 05/04/2017 ..#, $.,#../ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. - & ' .& / CONCERNED CIT 4. ' .& ( ) / THE CIT(A)-1 5. 2$34 ,&,# , , /DR,ITAT, RAJKOT 6. 4?@ A% / GUARD FILE. / BY ORDER, 2& ,& //TRUE COPY// / ( DY./ASSTT.REGISTRAR) %&, / ITAT, RAJKOT 1. DATE OF DICTATION .. 3.4.17 (COVERED CASE BELOW TAX EFFECT) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .. 3.4.17 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 5.4.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.4.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER