The Dy. Commr. of Income Tax, Circle-1, JAMNAGAR V. M/s. Harsh International, JAMNAGAR

ITA 370/RJT/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6704 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 06-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND N SONTAKE
• Assessee Lawyers: ANKIT GOKANIA R
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT (CONDUCTED THROUGH E-COURT AT AHMEDABAD) [CORAM: SHRI S. S. GODARA, JM & SHRI MANISH BORAD, AM ] ./ITA.NO.370 & 371/RJT/2015 ( / ASSTT YEAR : 2006-07 & 2007-08 ITO, WARD-1(3), JAMNAGAR. VS. M/S HARSH INTERNATIONAL, PLOT NO.633-634, GIDC, PHASE-II, DARED, JAMNAGAR PAN AADFH1518B (APPELLANT) (RESPONDENT) / APPELLANT BY: SHRI ARVIND N. SONTAKE, SR. DR / RESPONDENT BY: SHRI ANKIT GOKANI,AR / DATE OF HEARING 15/02/2017 /DATE OF PRONOUNCEMENT 16/02/17 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER THESE TWO APPEALS OF REVENUE FOR ASST. YEARS 2006 -07 AND 2007-08 ARE DIRECTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX(A), JAMNAGAR, DATED 05/05/2015 VIDE APPEAL NO.CIT(A)/JA M/120/14-15/140 & CIT(A)/JAM/121/14-15/140 ARISING OUT OF ORDERS U/S 271(1)(C) OF THE IT ACT, 1961 (IN SHORT THE ACT) DATED 28.07.2014 FRAMED BY ITO, WD-2(1), JAMNAGAR. SINCE THE APPEALS PERTAIN TO THE SAME ASS ESSEE AND THE ISSUES ARE COMMON THEY HAVE BEEN HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. ITA NO. 370 & 371/RJT/2015 ASST. YEAR 2006-07 2007-08 2 2. GRIEVANCES OF THE REVENUE, IN APPEAL IN ITA NO. 370/RJT/2015 FOR ASST. YEAR 2006-07 ARE AS UNDER :- 1. THE LD.CIT(A) ERRED IN LAW AND FACTS IN DELETING TH E PENALTY OF RS.8,20,000/- IMPOSED BY THE AO. 2. ON THE BASIS OF THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER. 3. THAT THE REVENUE CRAVES LEAVES TO ADD, AMEND, ALTER OR WITHDRAW ANY GROUND OF APPEAL. 4. IT IS THEREFORE PRAYED THAT THE ORDER OF THE LD.CIT (A), JAMNAGAR MAY KINDLY BE SET ASIDE AND THAT OF ASSESSING OFFICER B E RESTORED 3. GRIEVANCES OF THE REVENUE, IN APPEAL IN ITA NO. 371/RJT/2015 FOR ASST. YEAR 2007-08 ARE AS UNDER :- 1. THE LD.CIT(A) ERRED IN LAW AND FACTS IN DELETING TH E PENALTY OF RS.2,41,013/- IMPOSED BY THE AO. 2. ON THE BASIS OF THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER. 3. THAT THE REVENUE CRAVES LEAVES TO ADD, AMEND, ALTER OR WITHDRAW ANY GROUND OF APPEAL. 4. IT IS THEREFORE PRAYED THAT THE ORDER OF THE LD.CIT (A), JAMNAGAR MAY KINDLY BE SET ASIDE AND THAT OF ASSESSING OFFICER B E RESTORED 3. AFTER HEARING THE LD. REPRESENTATIVES AND PERUSI NG THE RECORDS PLACED BEFORE US, WE OBSERVE THAT THESE APPEALS WERE PRESE NTED ON 06/08/2015. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBITING ITS 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 ITA NO. 370 & 371/RJT/2015 ASST. YEAR 2006-07 2007-08 3 RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS . THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEA NING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEAL ALSO. THE TAX EFFECT ON DELETION OF THE TOTAL PENALTY IN EACH APPEAL WOULD BE LESS THAN RS.10 LAKHS. THE PRESENT APPEALS DESERVE TO BE DISMISSED BEING T REATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. THE CASES DO NOT FA LL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURT HER OBSERVED THAT SINCE, WHILE HEARING THE APPEALS, SUCH FACTORS WERE NOT CO NSIDERED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE AO, IT C AME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR THEY FALL WITHIN THE AMBIT OF EXCEPTIONS 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 PROVIDED IN LAW. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED. 4. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 16 TH FEBRUARY, 2017. SD/- (S.S.GODARA) JUDICIAL MEMBER SD/- (MANISH BORAD) ACCOUNTANT MEMBER DATED, 16/2/2017 MAHATA/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, RAJKOT ITA NO. 370 & 371/RJT/2015 ASST. YEAR 2006-07 2007-08 4 1. DATE OF DICTATION .. : 14/2/17. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER :15/2/17 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. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 17/2/17 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..