The Asstt. Commr. Income Tax, Gandhidham Circle, GANDHIDHAM V. Shri Bhagwanjibhai K. Ayachi, GANDHIDHAM

ITA 523/RJT/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6662 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 05-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE SHRI S.V. MEHROTRA , ACCOUNTANT MEMBER AND SHRI K. NAR A SIMHA CHARY , MEMBER ITA NO. 523 / RJT /201 4 ASS T. YEAR : 2009 - 10 ACIT, GANDHIDHAM CIRCLE, GANDHIDHAM, KUTCH (APPELLANT) VS SHRI BHAGWAN K. AYACHI PLOT NO. 69/70, GIDC INDUSTRIAL AREA, GANDHIDHAM PAN : ABIPA3989R (RESPONDENT) APPELLANT BY : SHRI AVINASH KUMAR, DR RESPONDENT BY : SHRI KALPESH DOSHI, CA DATE OF HEARING : 2 1 /0 3 /201 7 DATE OF PRONOUNCEMENT : 22 /0 3 /201 7 O R D E R PER K. NAR A SIMHA CHARY, MEMBER, JM : THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF CIT(A) - II , RAJKOT VIDE APPEAL NO. CIT(A) - II/RJT/0207/11 - 12 DATED 20.6.2014 . ASSESSMENT WAS FRAMED BY ACIT , GANDHIDHAM CIRCLE U/S. 143(3) R.W.S. 144 OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR AY 2009 - 10 VIDE HIS ORDER DATED 2 4 .1 1 .2011. 2. AT THE OUTSET, IT WAS POINTED OUT BY THE LD. AR THAT THE APPEAL IS HIT BY THE CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015 AS THE QUANTUM INVOLVED IN THIS CASE IS RS. 18,51,515 / - AND TAX EFFECT ON THE DISPUTED ADDITION BEFORE US IS RS. 6,27,664 / - , WHICH IS LESS THAN RS. 10 LACS. 2 ITA NO. 523/RJT/2014 SHRI BHAGWAN K. AYACHI 3. AFTER PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE ADDITIONS DISPUTED BEFORE US IS BELOW THE TAX EFFECT LIM IT PRESCRIBED BY CBDT VIDE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 FOR PREFERRING APPEALS BEFORE TRIBUNAL BY THE REVENUE. ON PERUSAL OF THE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 AND THE MATERIALS AVAILABLE ON RECORD, LD. DR COULD NOT POINT OUT WHETHER T HIS CASE FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN THE CIRCULAR DESPITE SPECIFIC OPPORTUNITY WAS GIVEN, DOES NOT FALL UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR, AS THIS IS COVERED. WE ALSO FIND THAT THE CIRCULAR MAKES IT VERY CLE AR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. WE FIND THAT THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. THIS POSITION HAS BEEN CONFIRMED BY THE HONBLE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIA N OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC). HENCE, WE HOLD THAT THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.21 / 2015 DATED 10.12.2015. ACCORDINGLY, THIS BEING A LOW TAX EFFECT CASE, WE DISMISS TH IS APPEAL OF REVENUE IN LIMINE , AS UNADMITTED, WITHOUT GOING INTO THE MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 2 N D MARCH, 2017. SD/ - SD/ - ( S.V. MEHROTRA ) ACCOUNTANT MEMBER ( K. NAR A SIMHA CHARY ) JUDICIAL MEMBER MUMBAI, DATE : 2 2 N D MARCH , 201 7 *SSL* 3 ITA NO. 523/RJT/2014 SHRI BHAGWAN K. AYACHI COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, RAJKOT 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, RAJKOT