The DCIT, Circle-1(1), Baroda V. M/s. Gujarat Industrial Power Co.Ltd., Baroda

ITA 630/AHD/2013

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6391 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 22-10-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 07-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DEEP VAISHNAV
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3); 201; 268A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE DCIT, CIRCLE - 1(1) , BARODA (APPELLANT) VS M/S. GUJARAT INDUSTRIAL POWER CO. LTD. P.O. PETROCHEMICAL, BARODA - 391346 PAN:AAACG7277Q (RESPONDENT) REVENUE BY : S H RI VINOD TANWANI , SR. D . R. ASSESSEE BY: SHRI DEEP VAISHNAV , A.R. DATE OF HEARING : 22 - 10 - 2 019 DATE OF PRONOUNCEMENT : 22 - 10 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THESE TWO REVENUE S APPEAL S FOR A. Y. 2009 - 10 & 2010 - 11 , ARI SE FROM O RDER OF THE CIT(A) - 1, BARODA DATED 11 - 12 - 2 012 & 24 - 12 - 2013 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO S . 630 / A HD/20 13 & 75 1 /AHD/2014 A SS ESSMENT YEAR 2009 - 10 & 2010 - 11 I.T.A NO S. 630 /AHD/20 13 & 75 1 /AHD/2014 A.Y. 2009 - 10 & 2010 - 11 PAGE NO DCIT VS. M/S. GUJARAT INDUSTRIAL POWER CO. LTD. 2 2 . AT THE OUTSET, AFTER GOING THROUGH THE GROUNDS OF APPEAL S AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WAS RAISED BY THE BENCH AS TO APPLICABILITY AND MAINTAINABILITY OF THE APPEAL S FILED BY THE REVENUE IN VIEW OF RECENT CBDT CIRCULAR NO. 17/2019 DATED 08 - 08 - 20 19 RESTRICTING THE FILLING OF THE APPEAL S BY THE REVENUE WH ERE THE TAX EFFECT IS BELOW RS.5 0 LAKHS, THE LD. DR DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WITH LAW. 3 . WE FIND THAT THE APPE AL S O F THE REVENUE ARE PRESE NTED ON 7.3.2013 & 13.3.2014 . ON 8.8.2019 THE CBDT HAS ISSUED INSTR UCTIONS BEARING NO. 17 OF 2019 UNDER FILE N O. F. NO. F. NO. 279/MISC. 142/2007 - ITJ(PT.) PROHIBITING ITS SUBORDINATE AUTHORITIES 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.5 0 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE O N PENDING APPEALS ALSO. IN THE PRESENT CASE, TAX EFFECT ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH AP PEAL IS FILED, IS LESS THAN RS.5 0 LAKHS. FURTHER, THE CASE OF THE REVENUE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESE NT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE - VERIFICATION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MORE OR REVENUE S CASE FALLS WITHIN THE AMBIT OF E XCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED I.T.A NO S. 630 /AHD/20 13 & 75 1 /AHD/2014 A.Y. 2009 - 10 & 2010 - 11 PAGE NO DCIT VS. M/S. GUJARAT INDUSTRIAL POWER CO. LTD. 3 WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, BOTH THE APPEAL S OF THE REV ENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 4 . IN THE RESULT, BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT O N 22 - 10 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SING H ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 22 /10 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,