The ITO, Ward-2, Navsari V. Smt. Komal Urveshkumar Shah, Navsari

ITA 386/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9255 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-03-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 10-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Assessee Lawyers: T P HEMANI
• Keywords: Tax effect

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.386 AND 387/AHD/2012 / ASSTT. YEAR: 2005-2006 AND 2006-2007 ITO, WARD - 2 NAVSARI. VS SMT. KOMAL URVESHKUMAR SHAH PROP. OF YASH MARBLE NR.KALAPOOL, SAMROLI CHIKHLI BILIMORA ROAD TAL. CHIKHLI, NAVSARI 396 521. PAN : AJXPS 4748 M ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI NARENDRA SINGH, SR.DR ASSESSEE BY : SHRI T.P. HEMANI, AR / DATE OF HEARING : 10/03/2016 / DATE OF PRONOUNCEMENT: 10/03/2016 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THERE ARE TWO APPEAL BY THE REVENUE AGAINST THE OR DERS OF LD.COMMISSIONER INCOME-TAX (APPEALS), VALSAD OF EVE N DATED 21.11.2011 PASSED FOR THE ASSTT.YEAR 2005-06 AND 20 06-07. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE LD. CIT (A) HAS ERRED IN DELETING VARIOUS ADDITIONS AGGREGATING TO RS.15,37, 782/- FOR THE ASSTT.YEAR 2005-06 AND RS.14,73,276/- FOR THE ASSTT .YEAR 2006-07. ITA NO.386 AND 387/AHD/2012 2 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS RAISED PRELIMINARY OBJECTION AS TO APPLICABILITY AND MAINTAINABILITY O F THE APPEAL FILED BY THE REVENUE IN VIEW OF RECENT CBDT INSTRUCTION NO.2 1/2015 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENUE WHERE THE TAX EFFECT IS BELOW RS.10 LAKHS. THE LD.DR DID NOT DISPUTE THE SAME AN D SUBMITTED THAT THE ISSUE MAY BE LEFT TO THE AO TO DECIDE WHETHER THE T AX EFFECT IS BELOW RS.10 LAKHS AS STIPULATED IN THE INSTRUCTIONS OF TH E CBDT. 4. WE FIND THAT THE BOTH THE APPEALS OF THE REVENUE ARE PRESENTED ON 10.2.2012. ON 10.12.2015 THE CBDT HAS ISSUED INSTR UCTIONS 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 RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RET ROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, TOTAL ADDITIONS DELETED BY THE LD.CIT(A) IS RS.15,37,782/- FOR THE ASSTT.YEARS 2005-06 AND RS.1 4,73,276/- FOR THE ASSTT.YEAR 2006-07 WHICH WAS CHALLENGED BY THE REVE NUE IN THE PRESENT APPEAL. IN ACCORDANCE WITH THE ABOVE CBDT CIRCULAR THE TAX EFFECT ON THE IMPUGNED ADDITIONS WOULD BE LESS THAN RS.10 LAK HS, AND THEREFORE, THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DI SMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. FUR THER, THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING THE APPE ALS, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-V ERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT I S MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION , THEN THE DEPARTMENT ITA NO.386 AND 387/AHD/2012 3 WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN FOUR YEARS OF TH IS ORDER. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DI SMISSED. ORDER PRONOUNCED IN THE COURT ON 10 TH MARCH, 2016 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER