ITO-Ward-6(2), Ahmedabad V. Smt. Chadrikaben Maheshbhai Patel, Ahmedabad

ITA 683/AHD/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2858 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 18-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BHAVESH SHAH
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH B BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA.NO.683/AHD /2016 WITH CO NO.54/AHD/2016 / ASSTT. YEAR: 2006-2007 ITO, WARD - 6(2) AMBAWADI AHMEDABAD. VS SMT.CHANDR I KABEN MAHESHBHAI PATEL 17, AMIRAJ BUNGLOW, MANIKAMAL SOCIETY NR.SURDHARA CIRCLE THALTEJ, AHMEDABAD. PAN : AFBPP 0339 P ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI MUDIT NAGPAL, SR.DR ASSESSEE BY : SHRI BHAVESH SHAH, AR / DATE OF HEARING : 01/11/2018 / DATE OF PRONOUNCEMENT: 01/11/2018 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-13 AHMEDABAD DATED 6.1.2016 PASSED FOR THE ASSTT.YEAR 2006-07. ON RECEIPT OF NOTICE ON THE REVENUES APPEAL, ASSESSEE HAS FILED CROSS OBJECTION BEARING NO.54/AHD/2016. BOTH ARE DISPOSED OF BY THIS COMMON ORDER. 2. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE H AS RAISED A PRELIMINARY OBJECTION AS TO THE MAINTAINABILITY OF REVENUES AP PEAL BEFORE THE TRIBUNAL, IN VIEW OF RECENT CBDT DIRECTION RESTRICTING THE REVEN UE NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.20 LAKHS. THEREFORE, SINCE DISPUTED ADDITION INVOLVED IN THE PRESENT APPEAL IS OF RS.57,15,932/- TAX EFFECT ITA NO.683/AHD/2016 WITH CO 2 THEREON WOULD BE LESS THAN RS.20 LAKHS, THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED IN LIMINE . TO THIS SUBMISSION OF THE LD.COUNSEL FOR THE AS SESSEE, NO RESISTANCE CAME FROM THE LD.DR, HOWEVER, AND LEF T THE ISSUE TO THE BENCH TO BE DECIDED IN ACCORDANCE WITH LAW. 3. ON DUE CONSIDERATION OF THE RECORD AND SUBMISSIO NS OF BOTH THE PARTIES, WE FIND THAT APPEAL OF THE REVENUE IS PRES ENTED ON 18.3.2016. ON 11.7.2018 THE CBDT HAS ISSUED A CIRCULAR NO.3/20 18 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF APPEAL TO TH E TRIBUNAL AGAINST ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.20 LAKHS. THE INSTRUCTI ONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THERE BY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRE SENT CASE, THE TAX EFFECT ON THE DISPUTED DELETION OF ADDITION DOES NOT EXCEE D RS.20 LAKHS, WHICH WAS ALSO NOT DISPUTED BY THE LD.DR. THE TAX EFFEC T AS PER CBDT CIRCULAR IS TAX ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN RED UCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH APP EAL IS FILED, WOULD BE LESS THAN RS.20 LAKHS. THEREFORE, THE PRESENT APPEA L OF THE REVENUE IS HIT BY THE CBDT CIRCULAR AND HENCE NOT MAINTAINABLE. F URTHER, LD.DR HAS NOT POINTED OUT WHETHER THE CASE OF THE REVENUE FAL L WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR OR NOT. 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 PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT I S MORE OR REVENUES ITA NO.683/AHD/2016 WITH CO 3 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 PPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 4. SO FAR AS CO OF THE ASSESSEE IS CONCERNED, IN VI EW OF DISMISSAL OF APPEAL OF THE REVENUE, THE LD.COUNSEL FOR THE ASSES SEE DOES NOT PRESS THE SAME FOR ADJUDICATION, HENCE, CO OF THE ASSESSEE ST ANDS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED DUE TO LOW TAX EFFECT, WHEREAS THE CO OF THE ASSESSEE IS DISMISSED AS NOT PRESSED. ORDER PRONOUNCED IN THE COURT ON 1 ST NOVEMBER, 2018 AT AHMEDABAD. SD/- SD/- ( AMARJIT SINGH ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/11/2018