The Asstt. Commr. of Income Tax, Circle-3, JAMNAGAR V. Everest Ovearseas, JAMNAGAR

ITA 367/RJT/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9071 (ITAT-RAJKOT)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 28-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: ANKIT GOKANI
• Keywords: Audit objection; Tax effect; Reassessment proceedings
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AH MEDABAD] BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI, MANISH BORAD, ACCOUNTANT MEMBER ./ I.T.A. NO.367/RJT/2016 ( / ASSESSMENT YEAR : 2009-10) ASST. COMMISSIONER OF INCOME-TAX CIRCLE-3, JAMNAGAR V/S EVEREST OVERSEAS, PLOT NO.C-2/107/43, GIDC, SHANKER TEKRI, JAMNAGAR (APPELLANT) (RESPONDENT) PAN: AABFE 2269 A APPELLANT BY : SHRI AVINASH KUMAR, SR. D .R. RESPONDENT BY : SHRI ANKIT GOKANI, A.R. ( )/ ORDER DATE OF HEARING : 19/04/2017 DATE OF PRONOUNCEMENT : 20/04/2017 PER MAHAVIR PRASAD, JUDICIAL MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF LD. CIT(A)- JAMNAGAR DATED 13/07/2016 PERTAINING TO A.Y . 2009-10. 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE READS AS U NDER:- (I) THE LEARNED CIT(A) HAS ERRED IN LAW AND ON THE FACT S IN QUASHING THE REASSESSMENT PROCEEDINGS MADE U/S. 143(3) R.W.S. 14 7 OF THE IT ACT. ITA NO. 367/RJT/2016 . A.Y. 2009-10 2 (II) THE LEARNED CIT(A) ERRED ON FACTS AND IN LAW IN DE LEING THE ADDITION OF RS.1,03,454/- MADE BY AO ON ACCOUNT OF INTEREST INC OME EXCLUDED FROM THE DEDUCTION U/S.10B OF THE ACT. (III) ON THE BASIS OF FACTS AND CIRCUMSTANCES OF THE CASE , THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER. (IV) THAT THE REVENUE CRAVES LEAVES TO ADD, AMEND, ALTER OR WITHDRAW ANY GROUND OF APPEAL. (V) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LEAR NED CIT(A) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUB MITTED THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LAC S. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. ITA NO. 367/RJT/2016 . A.Y. 2009-10 3 5. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN OPEN COURT ON 20/04/2017 SD/- SD/- (MANISH BORAD) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: /04/2017 PRITI COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) JAMNAGAR. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,RAJKOT TRUE COPY