The ITO, Ward-7(2), Ahmedabad V. M/s. 3 Alpha Outsourcing Services, Ahmedabad

ITA 69/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7879 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 08-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: KISHOR GOYALAR
• Keywords: Retrospective amendment; Tax effect
• Section: 10B

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 69/AHD/2016 WITH CO NO.38/AHD/2016 / ASSESSMENT YEAR: 2011-12 ITO, WARD-3(3)(10) AHMEDABAD. VS M/S.3 ALPHA OUTSOURCING SERVICES C/403, SAGUN CASA NR.PRERNATIRTH DERASAR OPP: VRIJ VIHAR TOWERS SATELLITE, AHMEDABAD 380 015. PAN : AAAFZ 5470 J / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI V.K. SINGH, SR.DR ASSESSEE BY : SHRI KISHOR GOYAL,AR / DATE OF HEARING : 16/07/2018 /DATE OF PRONOUNCEMENT : 16 /07/2018 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : THIS IS REVENUES APPEAL AGAINST THE ORDER OF THE LD.CIT(A)-3, AHMEDABAD DAT ED 2.11.2015 PASSED FOR THE ASSESSMENT YEAR 2011-12. UPON RECEIPT OF N OTICE ON THE REVENUES APPEAL, THE ASSESSEE HAS ALSO FILED CROSS OBJECTION BEARING NO.38/AHD/2016. 2. THOUGH THE REVENUE HAS RAISED AS MANY AS SIX GRO UNDS, SOLE ISSUE INVOLVED IN THESE GROUNDS IS THAT THE LD.CIT(A) HAS ERRED IN DELETING THE ITA NO.69/AHD/2016 WITH CO - 2 - DISALLOWANCE OF EXEMPTION UNDER SECTION 10B OF THE INCOME TAX ACT, 1961 OF RS.58,60,777/-. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE F OR THE ASSESSEE POINTED OUT THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINA BLE IN VIEW OF RECENT CBDT CIRCULAR NO.3/2018 DATED 11.7.2018 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENUE WHERE THE TAX EFFECT IS BELOW RS.20 LAKH. THE TAX EFFECT ON THE DISPUTED ADDITION IS BELOW RS.20 LAKH S, THEREFORE, APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED. LD.DR DID NO T DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WITH LAW. 4. WE FIND THAT THE APPEAL OF THE REVENUE IS PRESEN TED ON 8.9.2014. ON 8.1.2016 THE CBDT HAS ISSUED INSTRUCTIONS BEARING N O. 3 OF 2018 UNDER FILE NO.F.NO.279/MISC.142/2007-ITJ(PT) PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUN AL 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.20 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRU CTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, ADDITIO N CONTESTED BY THE REVENUE IS RS.58,60,777/-. THE TAX EFFECT ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD S UCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE I SSUE AGAINST WHICH APPEAL IS FILED, IS LESS THAN RS.20 LAKHS. FURTHER, THE CASE OF THE REVENUE ALSO DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS P ROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND P ROVISIONS 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 ACCORDI NGLY DISMISSED. ITA NO.69/AHD/2016 WITH CO - 3 - 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 CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN TH E CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF TH E REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. SO FAR CO FILED BY THE ASSESSEE IS CONCERNED, TH E SAME IS NOT PRESSED BY THE LD.COUNSEL, AND THEREFORE, THE SAME IS DISMI SSED FOR WANT OF PROSECUTION. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AND CO OF THE ASSESSEE, BOTH ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 16 TH JULY, 2018. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER