The ITO, Inter. Taxa., Gandhidham, GANDHIDHAM V. M/s Trinity Shipp. & Allied Ser. P. Ltd., Agent of Vessel M.V. Tycoon II, M/s Hakam Exports & Maritime Agenc. Co., GANDHIDHAM

ITA 584/RJT/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0109 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 07-11-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 10-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Keywords: Double taxation relief; Audit objection; Bonafide belief; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO.584/RJT/2014 / ASSESSMENT YEAR : 2010-11 INCOME-TAX OFFICER, (INTERNATIONAL TAXATION), GANDHIDHAM VS M/S. TRINITY SHIPPING & ALLIED SERVICES PVT. LTD, GANDHIDHAM AGENT OF VESSEL MV TYCOON II, PLOT NO.46, SECTOR-1/A, GANDHIDHAM-370 021 / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI AVINASH KUMAR, SR DR ASSESSEE BY : SHRI KALPESH DOSHI, AR / DATE OF HEARING : 07/11/2016 / DATE OF PRONOUNCEMENT: 07/11/2016 / O R D E R PER R.P. TOLANI, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), GANDHINAGAR D ATED 08.07.2014 FOR ASSESSMENT YEAR 2010-11. 2. THE SOLITARY GROUND RAISED BY THE REVENUE READS AS UNDER:- THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS THAT T HE ASSESSEE WAS UNDER BONAFIDE BELIEF REGARDING APPLICABILITY OF INDIA-EG YPT DTAA AND THEN DELETING THE PENALTY (RS.7,50,000) RIGHTS IMPOSED B Y THE AO. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12 .2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR . ITA NO.584/RJT/2014 ITO VS. TRINITY SHIPPING & ALLIED SER. P LTD AY : 2010-11 2 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LAC S. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 7 TH NOVEMBER, 2016 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (R.P. TOLANI) JUDICIAL MEMBER AHMEDABAD; DATED 07/11/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD