The ACIT, Circle-1(2) , Surat V. Sai Khati Enterprise, Surat

ITA 598/SRT/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4006 (ITAT-SURAT)
• Duration Of Justice: 2 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 29-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Assessee Lawyers: DHRUVANG H DIWAN
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, HON'BLE JUDICIAL MEMBER AND DR.SHRI ARJUN LAL SAINI, HON'BLE ACCOUNTANT MEMBER (VIRTUAL HEARING) . . ./ I.T.A NO.598/SRT/2018 [ [ / ASSESSMENT YEAR: 2013-14 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(2), SURAT. VS M/S.SAI KHATI ENTERPRISE, ANJANA T.P.S.7, FINAL PLOT NO.40, NEXT TO SARVODAYA TEXTILE MARKET, OPP.HARIDHAR TESTILE MARKET, RING ROAD, SURAT. [PAN: ABKFS 8870 P] / APPELLANT /RESPONDENT [ /ASSESSEE BY SHRI DHRUVANG H.DIWAN C A /REVENUE BY MS. ANUPAMA SINGLA SR.DR / DATE OF HEARING: 1 8 . 0 2 .20 2 1 /PRONOUNCEMENT ON: 18 . 0 2 .202 1 /O R D E R PER PAWAN SINGH, JUDICIAL MEMEBER: 1. THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF LD.COMMISSIONER OF INCOME TAX(APPEALS)-2, SURAT, HEREINAFTER REFERRED AS LD.CIT(A), PASSED UNDER SECTION 143(3) OF THE I.T.ACT (HEREINAFTER CALLED THE ACT) DATED 05.06.2018 FOR ASSESSMENT YEAR (AY) 2013-14. 2. THIS APPEAL COME UP HEARING ON 18.02.2021. SHRI DHRUVANG H.DIWAN-CA APPEARED ON BEHALF OF THE ASSESSEE. THE AUTHORISED REPRESENTATIVE (AR) FOR THE ASSESSEE SUBMITS THAT THE APPEAL ACIT, CIRCLE-1(2), SURAT VS. M/S.SAI KHATI ENTERPRISE/ ITA NO.598/SRT/2018 FOR A.Y. 2013-14 2 FILED BY THE REVENUE IS NOT MAINTAINABLE SINCE THE TAX EFFECT INVOLVED IN THE IMPUGNED APPEAL DOES NOT EXCEED MONETARY LIMIT I.E. RS.50 LAKHS SPECIFIED VIDE CBDT CIRCULAR NO.17/2019 DATED 08.08.2019. HE FURTHER SUBMITS THAT THE TAX EFFECT INVOLVED IN THE IMPUGNED APPEAL IS OF RS.36,17,550/- (BELOW RS.50 LAKHS). THEREFORE, THE APPEAL FILED BY REVENUE IS NOT MAINTAINABLE DUE TO LOW TAX EFFECT. 3. THIS FACT WAS CONFRONTED WITH THE LD.SENIOR DEPARTMENTAL REPRESENTATIVE (SR.DR) FOR THE REVENUE. THE SR.DR FOR REVENUE FAIRLY AGREED THAT THE TAX EFFECT IN THIS APPEAL IS BELOW THE MONETARY LIMIT OF RS.50 LAKHS AS PER CBDT CIRCULAR NO.17/2019. HOWEVER, THE SR.DR FOR THE REVENUE PRAYED THAT THE REVENUE MAY BE GIVEN LIBERTY TO GET THE APPEAL REVIVED, IF AT LATER STAGE IT IS DISCOVERED THAT THE APPEAL IS COVERED BY EXCEPTION CLAUSE OF EXISTING INSTRUCTIONS OF CBDT. 4. WE HAVE CONSIDERED THE CONTENTION OF LD.SR.DR FOR THE REVENUE AND THE ORDER OF LD.CIT(A) CAREFULLY. CONSIDERING THE FACT THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT FIXED BY CBDT IN ITS CIRCULAR NO.17/2019 DATED 08.08.2019, THEREFORE, THE APPEAL OF REVENUE IS NOT ADMITTED AND DISMISSED DUE TO LOW TAX EFFECT. HOWEVER, THE REVENUE IS GIVEN LIBERTY TO GET THE APPEAL REVIVED, IF AT THE LETTER STAGE IT IS ACIT, CIRCLE-1(2), SURAT VS. M/S.SAI KHATI ENTERPRISE/ ITA NO.598/SRT/2018 FOR A.Y. 2013-14 3 DISCOVERED THAT THE CASE IS COVERED BY ANY EXCEPTION CLAUSE OF THE SAID CIRCULAR. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. 6. ORDER PRONOUNCED ON 18 TH FEBRUARY 2021 WHILE HEARING THE APPEAL. SD/- SD/- (DR. ARJUN LAL SAINI) (PAWAN SINGH) ( /ACCOUNTANT MEMBER) ( /JUDICIAL MEMBER) / SURAT, DATED : 18 TH FEB 2021 / #SGR COPY OF ORDER SENT TO:- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT