The DCIT, Circle-1, Surat V. M/s. Ameen Silk Mills Pvt. Ltd., Surat

ITA 731/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6224 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 10-03-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 12-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARM YADAV
• Assessee Lawyers: BHARAT JAVERI
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL CAMP AT SURAT BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO.731/AHD/2014 / ASSTT. YEAR: 2007-2008 DCIT, CIR.1 SURAT. VS. M/S.AMEEN SILK MILLS P.LTD. PLOT NO.83/84/85, GIDC PANDESARA, SURAT 394 221. PAN : AACCA 3420 H / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI DHARM YADAV, SR.DR ASSESSEE BY : SHRI BHARAT JAVERI, AR ! / DATE OF HEARING : 10/03/2017 '#$ ! / DATE OF PRONOUNCEMENT: 05/04/2017 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF THE LD.CIT(A)-I, SURAT DATED 24.12.2013 PASSED FOR ASST T.YEAR 2007-08. 2. SOLE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT (A) HAS ERRED IN DELETING THE ADDITION MADE UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961. 3. AT THE OUTSET, LD.COUNSEL FOR THE ASSESSEE SUBMI TTED THAT PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD IN VIEW ITA NO.731/AHD/2014 2 OF RECENT CBDT CIRCULAR NO.21 OF 2015 RESTRICTING F ILING OF THE APPEAL BEFORE THE ITAT, WHERE TAX EFFECT IS LESS THAN RS.1 0 LAKHS. THE LD.COUNSEL FOR THE ASSESSEE HAS SUBMITTED TAX CALCU LATION SHEET SHOWING THAT TAX INVOLVED IN THE APPEAL IS LESS THAN RS.10 LAKHS, WHICH IS REPRODUCED HEREUNDER: TOTAL INCOME AS PER RETURN OF INCOME 7311380 TAX PAYABLE COMES TO 2461010 TOTAL INCOME AS PER ASSESSMENT ORDER U/S.143(3) DT.31.12.2009 (ADDITION MADE ON ACCOUNT OF BAD DEBT OF RS.1318904 & CLOSING STOCK OF WIP OF 1751509 I.E. TOTAL 3070413 10381790 ITAT DELETED ADDITION ON ACCOUNT OF BAD DEBT VIDE ORDER DATED 31.8.2012 1318904 REVISED TOTAL INCOME AFTER GIVING EFFECT OF ITAT ORDER DATED 31.8.2012 9062886 ORDER PASSED U/S.143(3) R.W.S. 147 OF THE ACT BY MAKING ADDITION OF RS.876818 (718066+158752) ON 30.01.2013 9939704 TAX PAYABLE AS PER ORDER DATED 30.01.2013 3345704 COMMISSIONER OF INCOME TAX (APPEAL) GIVEN RELIEF VIDE ORDER DATED 24.12.2013 784618 REVISED TOTAL INCOME AFTER EFFECT OF CIT(A) ORDER DATED 28.7.2015 9155090 TAX PAYABLE ON REVISED TOTAL INCOME AS PER EFFECT OF CIT(A) ORDER 3081603 TAX AS PER ORDER U/S.143(3) R.W.S. 147 COMES TO 3345704 TAX AS PER ORDER AFTER GIVING EFFECT OF CIT(A) ORDER 3081603 ITA NO.731/AHD/2014 3 SO TAX DIFFERENCE IS 264101 I.E.BELOW THE LIMIT OF RS.10 LAKHS THE LD.COUNSEL FOR THE ASSESSEE, THEREFORE, SUBMITT ED THAT SINCE APPEAL BEING FILED IN VIOLATION OF ABOVE CBDT CIRCULAR, AP PEAL OF THE REVENUE REQUIRES TO BE DISMISSED. THE LD.DR, ON THE OTHER HAND, IS NOT IN POSITION TO DISPUTE THE TAX CALCULATION SHEET MADE BY THE ASSESSEE NOR HE COULD CONTROVERT THE ABOVE CIRCULAR OF THE CBDT. 4. AFTER GOING THROUGH RECORD WE FIND THAT REVENUE HAS FILED APPEAL BEFORE THE TRIBUNAL ON 12.3.2014. THE LATEST CBDT C IRCULAR NO.21/2015 DATED 10.12.2015 PROHIBITS FILING OF APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS. ADMITTEDLY, CALCULATIO N SHEET MADE BY THE ASSESSEE SHOWING TAX EFFECT IN THE PRESENT APPEAL B ELOW RS.10 LAKHS HAS NOT BEEN DISPUTED BY THE REVENUE. FURTHER, THE ABOVE CIRCULAR HAS RETROSPECTIVE EFFECT, AND THEREFORE, APPEALS OF THE REVENUE PENDING AS ON THE DATE AND FALLING WITHIN THE MONETARY LIMIT A RE ALSO COVERED BY THE CIRCULAR AND THEREFORE PRESENT APPEAL IS NOT MA INTAINABLE. 5. IT IS FURTHER OBSERVED THAT ON RE-VERIFICATION A T THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 5 TH APRIL, 2017 AT AHMEDABAD. SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 05/04/2017