The ACIT, Circle-2, JAMNAGAR V. Tacon Infrastructure P. Ltd., PORBANDAR

ITA 423/RJT/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6620 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 02-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: ANKIT GOKANI
• Keywords: Tax effect

Judgement Text

: : IN THE INCOME TAX APPELLATE TRIBULAL: RAJKOT BENCH: RAJKOT BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI K. NAR ASIMHA CHA RY , JUDICIAL MEMBER ./ ITA NO . 423 /R JT /201 4 / ASSESSMENT YEAR : 2006 - 07 ACIT , CIRCLE - 2 , JAMNAGAR VS M/S.TACON INFRASTRUCTURE PVT LTD. , TACON COMPLEX, 3 - WADI PLOT, PORBANDAR. PAN : A ABCT4416D / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI AVINASH KUMAR , D.R ASSESSEE BY : SHRI ANKIT GOKANI , C . A / DATE OF HEARING : 22 / 03/2017 / DATE OF PRONOUNCEMENT: 24/ 03/2017 / O R D E R PER SHRI S.V. MEHROTRA , ACCOUNTANT MEMBER : THE DEPARTMENT HAS FILED THE ABOVE APPEAL AG AINST THE ORDER OF LD.CIT(A) - I , RAJKOT DATED 26 / 02 / 201 4 F OR ASSESSMENT YEAR 20 0 6 - 07 . 2. AT THE OUTSET, LD.COUNCEL FOR THE ASSESSEE , SUBMITTED THAT ASSESSING OFFICER WHILE LEVYING PENALTY U/S.271(1)(C) HAS CONSIDERED THE CONCEALED INCOME AT RS.32 , 43 , 0 20 / - AS AGAINST RS. 20,24,847/ - WHICH WAS THE INTEREST INCOME ON WHICH DEDUCTION UNDER SECTION 80 - IA WAS DENIED IN THE ORDER PASSED U/S.143(3) R.W .S 263. LD.COUNSEL POINTED OUT THAT ON MERIT LD. CIT(A) HAS DELETED PENALTY AND REVENUE IS IN APPEAL . HE SUBMITTED T HAT I F THE CORRECT IMPUGNED AMOUNT IS TAKEN , THE N THE TAX EFFECT WILL BE LESS THAN RS.10 LACS AND THE DEPARTMENT HAS TO WITHDRAW THE APPEAL AS PER THE CIRCULAR ISSUE D BY THE CBT NO. 21/2015 DATED 10/12/2015, BECAUSE THE SAID CIRCULAR IS APPLICABLE TO ALL PE NDING APPEALS. ITA NO. 4 23/RJT/2014 A.Y.2006 - 07 - 2 - 3. THE LD.DR RELIED UPON THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTIES AND FIND THAT IN THE WRITTEN SUBMISSION ASSESSEE HAS IN DETAIL EXPLAINED THE SEQUENCE OF PROCEEDINGS AND HAS POINTED OUT T HAT INTEREST INCOME WAS RS.20,24,847 / - ON WHICH DEDUCTION U/ S . 80I - A WAS DENIED IN VIEW OF DECISION OF HON BLE SUPREME COURT IN THE CASE OF LIBERTY INDIA. HOWEVER, PENALTY WAS DELETED BY LD.CIT(A) AND NOW THE DEPARTMENT IS IN APPEAL. UNDER SUCH CIRCUMSTA NCES THE TAX EFFECT IS LESS THAN RS. 10 LACS. THEREFORE, WE RESTORE THE MATTER TO THE FILE OF ASSESSING OFFICER TO EXAMINE THE ASSESSEE S CONTENTION . IF THE CONTENTION IS FOUND TO BE CORRECT , THE R EVENUE S APPEAL CANNOT SURVIVE. HOWEVER, IF THE TAX EFFECT IS FOUND TO BE MORE THAN RS.10 LACS THE N R EVENUE WILL BE FREE TO FILE APPLICATION FOR REVIVAL OF ITS APPEAL AND THE ASSESSEE WOULD BE FREE TO ADVANCE IT S ARGUMENT ON MERITS. 5. IN THE RESULT , APPEAL IS ALLOWED FOR STATISTICAL P URPOSE IN TERMS OF AFORESAID DIRECTION. ORDER PRONOUNCED IN THE COURT ON 24 TH MARCH, 2017. SD/ - SD/ - ( K. NAR ASIMHA CHA RY ) JUDICIAL MEMBER ( S.V. MEHROTRA ) ACCOUNTANT MEMBER RAJKOT , DATED 24 / 03 /20 17 * MANISH / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT - 2 . / RESPONDENT - 3 . / CONCERNED CIT /DIT 4 . - / CIT (A) - IV, RAJKOT 5 . , , / DR, ITAT, RAJKOT 6 . / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) / ITAT, RAJKOT