The DCIT, Central Circle-2(4), Ahmedabad V. M/s. Sekhani Fabric Mills Pvt.Ltd., Ahmedabad

ITA 587/AHD/2013

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4799 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 22-04-2020
• Assessment Year: 2007-2008
• Appeal Filed On: 05-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.587/AHD/2013 AND ITA NO.588/AHD/2013 [ / ASSTT.YEAR : 2007-08 AND 2009-10] DCIT, CENT.CIR.2(4) AHMEDABAD. VS. M/S. SEKHANI FABRICS P. LTD. 62, NEW CLOTH MARKET RAIPUR GATE, SARANGPUR AHMEDABAD 380 002. PAN : AACCS 1080 K ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI VINOD TANWANI, SR.DR ASSESSEE BY : SHRI PARIN SHAH, AR / DATE OF HEARING : 09/10/2020 ! / DATE OF PRONOUNCEMENT: 19/10/2020 !/ O R D E R PER RAJPAL YADAV, VICE-PRESIDENT PRESENT TWO APPEALS ARE FILED AT THE INSTANCE OF TH E REVENUE AGAINST ORDERS OF LD.CIT(A)-III, AHMEDABAD OF EVEN DATED I. E. 28.12.2012 PASSED FOR THE ASSTT.YEARS 2007-08 AND 2009-10 RESPECTIVELY CH ALLENGING DELETION OF ADDITIONS BY THE CIT(A) AS SET OUT IN THE GROUNDS O F APPEALS. 2. BEFORE GOING TO THE MERIT OF THE CASES, THE LD.C OUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT TAX EFFECT ON THE DISPUTED ADDITIONS IN BOTH THE CASES IS BELOW RS.50 LAKHS. THEREFORE, IN VIEW OF THIS, HE SUBMITTED THAT BY VIRTUE OF RECENT CBDT CIRCULAR NO .17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUCTED NOT TO FIL E APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. TH IS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, T HE PRESENT APPEALS OF THE REVENUE ARE LIABLE TO BE DISMISSED AT THE THRES HOLD. PER CONTRA, THE ITA NO.587 AND 588/AHD/2013 2 LD.DR DID NOT DISPUTE APPLICABILITY OF THE RECENT C BDT CIRCULAR AND ALSO TAX EFFECT BEING BELOW RS.50 LAKHS IN EACH OF THE C ASES. HE, HOWEVER, LEFT THE ISSUE TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 3. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEALS OF THE REVENUE FALL WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CIT ED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE DISP UTED TOTAL ADDITION IS LESS THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VI EW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCO ME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEALS OF THE REVENUE DESERVE TO BE DISMISSED. BOTH ARE ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE A PPEALS OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 4. IN THE RESULT, APPEALS OF THE REVENUE IS DISMISS ED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 19 TH OCTOBER, 2020 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / (RAJPAL YADAV) VICE-PRESIDENT