The ITO, Ward-2, Dahod V. The Vepar Udhyog Vikas Sahakari Bank Ltd., Dahod

ITA 752/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6218 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 12-04-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 13-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, AHMEDABAD BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.752/AHD/2014 WITH CO NO.170/AHD/2014 +, - ./-/ ASSTT. YEAR: 2010-11 I TO , WARD - 2 DAHOD 389 151. VS. VEPAR UDHYOG VIKAS SAHAKARI BANK LTD. VIKAS BHAVAN LIMDI GATE TALUKA JHALOD DIST. DAHOD 389 180. ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI PRASOON KABRA, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 12/04/2017 / DATE OF PRONOUNCEMENT: 12/04/2017 :;/ O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER: THIS IS REVENUES APPEAL AND ASSESSEES CO AGAINST ORDER OF LD.CIT(A)-VI, BARODA DATED 2.12.2013 PASSED FOR THE ASSTT.YEAR 2010-11. 2. REVENUE IS AGGRIEVED WITH THE ACTION OF THE LD.C IT(A) IN DELETING DISALLOWANCE OF RS.15,26,223/- ON ACCOUNT OF INTERE ST INCOME EARNED BY THE ASSESSEE. ITA NO.752/AHD/2014 WITH CO 2 3. NONE APPEARED ON BEHALF OF THE ASSESSEE, THEREFO RE, APPEAL OF THE REVENUE IS BEING DECIDED AFTER HEARING LEARNED DR A ND CONSIDERING THE MATERIAL AVAILABLE ON RECORD. 4. AFTER GOING THROUGH THE RECORD, WE FIND THAT THE LD.CIT(A) HAS DELETED ADDITION OF RS.15,26,223/- MADE BY THE AO ON ACCOUN T OF INTEREST INCOME. WITHOUT GOING TO THE MERIT OF THE CASE, A QUERY WAS ASKED BY THE BENCH AS TO THE MAINTAINABILITY OF THE APPEAL IN VIEW OF RECENT CBDT CIRCULAR NO.21 OF 2015 RESTRICTING FILING OF APPEAL BEFORE THE TRIBUN AL BY THE REVENUE WHERE TAX EFFECT IS BELOW RS.10 LAKHS, THE LD.DR WAS UNABLE T O REFUTE THE SAME. 5. WE FIND THAT THE REVENUE HAS FILED THIS APPEAL ON 13.3.2014. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFEC T BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRE SENT CASE, THE ADDITION CONTESTED BY THE REVENUE IS RS.15,26,223/-, AND THE TAX EFFECT ON THIS ALLEGED ADDITION WOULD BE LESS THAN RS.10 LAKHS, WHICH IS N OT DISPUTED BY THE REVENUE. THEREFORE, PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF THE ABOVE CBDT INSTRUCTION . IT IS DISMISSED. 6. 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 FA LLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEP ARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. ITA NO.752/AHD/2014 WITH CO 3 7. AS FAR AS CO OF THE ASSESSEE IS CONCERNED, THE S AME IS MERELY IN SUPPORT OF ORDER OF THE LD.CIT(A), AND THEREFORE, T HE CO BEING ACADEMIC IN NATURE, THE SAME IS DISMISSED. 8. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT AND CO OF THE ASSESSEE IS DISMISSED BEING ACADEMIC IN NATURE. ORDER PRONOUNCED IN THE COURT ON 12 TH APRIL, 2017 AT AHMEDABAD. SD/- SD/- ( S . S . G O D A R A ) JUDICIAL MEMBER ( MANISH BORAD ) ACCOUNTANT MEMBER