The ITO, Ward-5(1), Ahmedabad V. M/s. Naval Overseas Pvt. Ltd., Ahmedabad

ITA 391/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9882 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 05-01-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 14-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.391/AHD/2011 /BLOCK ASSTT. YEAR: 2001-2002 ITO, WARD-5(1) AHMEDABAD. VS M/S.NAVAL OVERSEAS P.LTD. 3901/A, GIDC, PHASE-IV VATVA, AHMEDABAD. PAN : AABCN 1085 A %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SMT. SONIA KUMAR, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 05/01/2016 / DATE OF PRONOUNCEMENT: 05/01/2016 )*/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF LD.COMMISSIONER INCOME-TAX (APPEALS)-XI, AHMEDABAD DATED 03.12.2010 PASSED FOR THE ASSTT.YEAR 2001-02. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT( A) HAS ERRED IN DELETING PENALTY OF RS.5,04,120/- IMPOSED BY THE AO UNDER SE CTION 271(1)(C) OF THE ACT. ITA NO.391/AHD/2011 2 3. THIS APPEAL WAS PRESENTED ON 14.02.2011. ON 10. 12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBI TING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUN AL 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 RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRU CTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, THE ASS ESSED INCOME OF THE ASSESSEE IS OF RS.26,00,725/- WHICH WAS CONFIRMED BY THE CIT (A) AND THE TRIBUNAL. THE LD.AO IMPOSED PENALTY OF RS.5,04,120/- UNDER SE CTION 271(1)(C) OF THE ACT. THE TAX EFFECT ON DELETION OF PENALTY OF RS.5, 04,120/- WOULD BE LESS THAN RS.10 LAKHS. THE PRESENT APPEAL DESERVES TO BE DIS MISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING THE APPEAL, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END O F THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIB ERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATIO N SHOULD BE FILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APP EAL OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 5 TH JANUARY, 2016 AT AHMEDABAD. SD/- SD/- ( MANISH BORAD ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 05/01/2016