The DCIT, Surendrangar Circle, Surendranagar V. Shankarbhai Amthubhai Patel, Surendranagar

ITA 56/RJT/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2243 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 06-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER [CONDUCTED THROUGH E COURT AT ITAT, AHMEDABAD] ./ ITA.NO.56/RJT/2013 / ASSTT. YEAR: 2009-2010 DCIT, SURENDRANAGAR CIRCLE SURRENDRANAGAR. VS S HANKARBHAI AM THUBHAI PATEL PROP: OF PATEL INDUSTRIES DUDHREJ ROAD SURENDRANAGAR. / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI C.S. ANJARIA, DR ASSESSEE BY : NONE / DATE OF HEARING : 10/02/2016 / DATE OF PRONOUNCEMENT: 17/03/2016 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF THE LD.CIT(A)-XVI, AHMEDABAD DATED 19.12.2012 PASSED FO R THE ASSTT.YEAR 2009-10. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD .CIT(A) IN DELETING THE ADDITION OF RS.2,50,000/- IN THE CLOSI NG STOCK AND ALSO IN RESTRICTING THE ADDITION OF RS.75,000/- AS AGAINST RS.4,85,889/- MADE BY THE AO ON ACCOUNT OF AGRICULTURE INCOME. ITA NO.56/RJT/2013 2 3. NONE APPEARED ON BEHALF OF THE ASSESSEE, THEREFO RE, WE PROCEED TO DISPOSE OF APPEAL EX PARTE QUA THE ASSESSEE-RESPONDENT AFTER HEARING THE LD.DR AND CONSIDERING THE MATERIAL PLACED ON RECORD . 4. AT THE OUTSET, A QUERY FROM THE BENCH AS TO THE MAINTAINABILITY OF THE REVENUES APPEAL IN THE VIEW OF THE RECENT CBDT CIRCULAR RESTRICTING FILING OF THE APPEAL BY THE REVENUE WHERE TAX EFFEC T IS BELOW RS.10 LAKHS, THE LD.DR IS UNABLE TO CONTROVERT THE SAME, BUT SUBMITTED THAT THE ISSUE MAY BE LEFT TO THE AO TO DECIDE WHETHER THE T AX EFFECT IS BELOW RS.10 LAKHS AS STIPULATED IN THE INSTRUCTIONS OF TH E CBDT. 5. WE FIND THAT THE APPEAL OF THE REVENUE IS PRESEN TED BEFORE THE TRIBUNAL ON 6.3.2013. ON 10.12.2015 THE CBDT HAS I SSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBITING ITS SUBORDINATE AUT HORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL 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 RET ROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, THE TAX EFFECT ON THE T OTAL IMPUGNED ADDITIONS DELETED BY THE LD.CIT(A) AND DISPUTED BY THE REVENU E APPEAL WOULD BE LESS THAN RS.10 LAKHS, AND THEREFORE, THE PRESENT A PPEAL OF THE REVENUE DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. FURTHER, THE CASE DOES NOT FALL WITH IN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IT IS FUR THER 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 WITH IN THE AMBIT OF EXCEPTIONS ITA NO.56/RJT/2013 3 PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WI LL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 17 TH MARCH, 2016 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER