DY.C.I.T. CIR.8, Nagpur V. SHRI RAJENDRA KISANLAL SANCHETI, Nagpur

ITA 440/NAG/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2185 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 02-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 08-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect

Judgement Text

1 ITA NO. 440/NAG/2014 . IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 440/NAG/2014 ASSESSMENT YEAR : 2010 - 11. DY. COMMISSIONER OF INCOME - TAX, RAJENDRA KISANLAL SANCHETI, CIRCLE - 8, NAGPUR. VS. NAGPUR. PAN ABIPS9824F. APPELLANT RESPONDENT APPELLANT BY : SHRI S.P.G. MUDLIAR. RESPONDENT : SHRI MUKESH AGRAWAL. DATE OF HEARING : 02 - 06 - 2016 DATE OF PRONOUNCEMENT : 2 ND JUNE, 2016. O R D E R PER MUKUL K. SHRAWAT, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - I I , NAGPUR DATED 24 - 07 - 2014 DELETING THE PENALTY OF RS. 22,73,067/ - MADE BY T HE AO U/S 40(A)(IA) OF I.T. ACT. 2. FROM THE SIDE OF THE REVENUE LEARNED D.R. MR. S.P.G. MUDLIAR APPEARED AND INFORMED THAT A LETTER HAD BEEN WRITTEN TO THE REVENUE OFFICER FOR OBTAINING NECESSARY DIRECTION IN RESPECT OF THIS APPEAL BECAUSE THE TAX EFFEC T DOES NOT EXCEED THE LIMIT PRESCRIBED AS PER THE LATEST BOARDS CIRCULAR. ON THE OTHER HAND, FROM THE SIDE OF THE ASSESSEE, LEARNED A.R. MR. MUKESH AGRAWAL HAS PLACED ON RECORD A CALCULATION OF TAX ACCORDING TO WHICH THE DISPUTED ADDITION IS RS.22,73,067 ON WHICH THE TAX EFFECT ALONG WITH SURCHARGE IS RS.7,02,378. 2 ITA NO. 440/NAG/2014 . 3 . AT THE THRESHOLD IT IS NOTED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT FIXED BY THE CBDT FOR FILING APPEALS BEFORE THE INCOME TAX APPELLATE TRIBUNAL VIDE CBDT CIRCULAR NO. 21/2015 DATED 10 - 12 - 2015. IN THE SAID CIRCULAR IT HAS BEEN SPECIFIED THAT THE CIRCULAR WOULD HAVE RETROSPECTIVE EFFECT AND THE REVENUE WOULD NOT PRESS AND WOULD WITHDRAW SUCH APPEALS. THERE ARE CERTAIN EXCEPTIONS MENTIONED IN THE SAID CIRCULAR. LEARNED D.R. COULD NOT POINT OUT THAT ANY OF THESE CASES ATTRACT THE EXCEPTIONS PROVIDED IN THE SAID CIRCULAR. IN THESE CIRCUMSTANCES, IN THE LIGHT OF THE ABOVE SAID CBDT CIRCULAR, THIS APPEAL IS DISMISSED ON ACCOUNT OF TAX EFFECT IN LIMINE. 4 . IN THE RESULT, THIS APPEAL F ILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 ND DAY OF JUNE , 2016. SD/ - SD/ - (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: 2 ND JUNE, 2016. 3 ITA NO. 440/NAG/2014 . COPY FORWARDED TO : 1. SHRI RAJENDRA KISANLAL SANCHETI, 267, GANESH FADNAVIS BHAWAN, TRIANGULAR PARK, DHARAMPETH, NAGPUR - 440 010. 2. D.C.I.T., CIRCLE - 8 , NAGPUR. 3. COMMISSIONER OF INCOME - TAX - IV, NAGPUR. 4. CIT(APPEALS) - I I, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, NAGPUR WAKODE.