The ACIT,(OSD)Circle-5, Ahmedabad V. M/s. Navin Detergent Pvt.Ltd., Ahmedabad

ITA 405/AHD/2011

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3654 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-05-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 14-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R REWAR
• Assessee Lawyers: H C SHAH
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI R. P. TOLANI, JM, AND SHRI MANISH BORAD , AM ./ITA.NO.404 TO 406/AHD/2011 ( / ASSTT YEAR : 2001-02,2003-04&2004-05) DCIT, CIRCLE-5, AHMEDABAD. VS. NAVIN DETERGENTS PVT. LTD. NIRMA HOUSE, ASHRAM ROAD, AHMEDABAD. PAN AAACN 5215B (APPELLANT) (RESPONDENT) / APPELLANT BY: MR. A. R. REWAR, SR.DR / RESPONDENT BY: SHRI H. C. SHAH, AR / DATE OF HEARING 30/05/2016 /DATE OF PRONOUNCEMENT 01/06/2016 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER ALL THE THREE APPEALS OF REVENUE IN ITA NOS. 404 TO 406/AHD/2011 FOR ASST. YEAR 2001-02, 2003-04, & 2004-05 RESPECTI VELY ARE DIRECTED AGAINST SEPARATE ORDERS OF LD.CIT(A)-XI, AHMEDABAD DATED 15.12.2010. SINCE ALL THESE APPEALS PERTAIN TO THE SAME ASSESSE E AND THE ISSUES INVOLVED ARE SIMILAR, THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. GRIEVANCES OF THE REVENUE, IN ITA NO.404/AHD/201 1 FOR ASST. YEAR 2001-02 ARE AS UNDER :- ITA.NO.404 TO 406/AHD/2011 - 2 1. THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS. 2,53,60 0/- LEVIED U/S 271(L)[C) OF THE ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. COMMISSIONER OF INCOME TAX (A) MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED . 3. GRIEVANCES OF THE REVENUE, IN ITA NO.405/AHD/201 1 FOR ASST. YEAR 2003-04 ARE AS UNDER :- 1. THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS. 3,01,50 0/- LEVIED U/S 271(L)[C) OF THE ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. COMMISSIONER OF INCOME TAX (A) MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED . 4. GRIEVANCES OF THE REVENUE, IN ITA NO.406/AHD/201 1 FOR ASST. YEAR 2004-05 ARE AS UNDER :- 1. THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OFRS. 6,85 ,700/- LEVIED U/S 271(L}(C) OF THE ACT. 2. THE LD. COMMISSIONER OF INCOME TAX (A] HAS E RRED IN LAW AND ON FACTS OF .THE CASE IN RELYING UPON THE H ON'BLE APEX COURT'S DECISION IN THE CASE OF TRF LTD. V/S C IT ITA.NO.404 TO 406/AHD/2011 - 3 (323 1TR 397) (2010] , WHICH IS NOT APPLICABLE IN T HE CASE OF THE ASSESSEE AS THE ASSESSEE NEVER PRODUCED THE BOOKS OF ACCOUNTS BEFORE THE AO TO VERIFY AS TO WHE THER THE BAD-DEBT WERE ACTUALLY WRITTEN-OFF BY THE ASSES SEE IN THE BOOKS OF ACCOUNTS OR NOT WHICH WAS THE PREDOMIN ANT DECIDING FACTOR OF THIS ISSUE. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LD. COMMISSIONER OF INCOME TAX (A] OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4. IT JS , THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (A] MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 5. THESE APPEALS WERE PRESENTED ON 14-02-2011. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PR OHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL T O THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIR TUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRU CTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THERE BY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. THE TAX EF FECT ON DELETION OF THE TOTAL ADDITION IN EACH APPEAL WOULD BE LESS THAN RS .10 LAKHS. THE PRESENT APPEALS DESERVE TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. THE CASES DO NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVE D THAT SINCE, WHILE HEARING THE APPEALS, SUCH FACTORS WERE NOT CONSIDER ED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR THEY FALL WITHIN THE AMBIT OF EXC EPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATIO N SHOULD BE FILED WITHIN ITA.NO.404 TO 406/AHD/2011 - 4 LIMITATION PROVIDED IN LAW. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE COURT ON 1 ST JUNE, 2016 AT AHMEDABAD. SD/- SD/- (R.P. TOLANI) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER AHMEDABAD; DATED, 01/06/2016 ! '!/ COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. &$% / THE RESPONDENT. 3. '(( ) * / CONCERNED CIT 4. ) * ( ) / THE CIT(A)- 5. !-. , ,012 /DR,ITAT, AHMEDABAD, 6. .3 45 / GUARD FILE. ) ' / BY ORDER, ' (0 (ASSTT.REGISTRAR) ITAT, AHMEDABAD 1. DATE OF DICTATION .. : 30/05/2016. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER : 30/05/2016 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 DICTATING MEMBER FO R 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 1/6 /16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATUR E ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER