The ITO, Ahmedabad V. Shri Rameshchandra Joitaram Chaudhary, Ahmedabad

ITA 769/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8907 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 22-03-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 14-03-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: KRUTESH PATEL
• Keywords: Retrospective amendment; Tax effect
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 22

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.769/AHD/2014 / ASSTT. YEAR: 2009-2010 ITO,WARD-7(2) AHMEDABAD. VS. SHRI RAMESHCHANDRA JOITARAM CHAUDHARY PROP. OF M/S.APNA HARDWARE SUPPLIERS 9, 1 ST FLOOR MANSI COMPLEX SATELLITE, AHMEDABAD 380 015. PAN : ADEPC 7260 R / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI SONIA KUMAR, SR.DR ASSESSEE BY : SHRI KRUTESH PATEL, AR ! / DATE OF HEARING : 22/03/2017 '#$ ! / DATE OF PRONOUNCEMENT: 22/03/2017 %& / 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)-XIV, AHMEDABAD DATED 5.12.2013 PASSED FOR THE ASSTT.YEAR 2009-10. ITA NO.769/AHD/2014 2 2. REVENUE IS AGGRIEVED BY THE ACTION OF THE LD.CIT (A) IN DELETING THE DISALLOWANCE OF RS.9,74,615/- ON ACCOUNT OF SALE PR OMOTION EXPENSES OUT OF TOTAL DISALLOWANCE OF RS.12,99,486/- MADE BY THE AO. 3. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITS THAT APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW O F LATEST CBDT INSTRUCTION NO.21 OF 2015 DATED 10.12.2015 WHEREBY THE BOARD HAS RESTRICTED DEPARTMENT NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS. HE FURTHER SUBMITS TH AT THIS INSTRUCTION IS RETROSPECTIVE IN NATURE, THEREFORE APPLICABLE TO AL L CASES PENDING BEFORE THE TRIBUNAL ALSO. IN SUPPORT OF HIS SUBMISSION, H E ALSO FILED COPY OF ABOVE CBDT CIRCULAR NO.21 OF 2015. 4. THE LD.DR, HOWEVER, DID NOT CONTEST THIS SUBMISS ION OF THE LD.COUNSEL FOR THE ASSESSEE AND/OR APPLICABILITY OR OTHERWISE MERIT OF THE CBDT CIRCULAR CITED SUPRA. 5. AFTER GOING THROUGH RECORD WE FIND THAT REVENUE HAS FILED APPEAL BEFORE THE TRIBUNAL ON 14.3.2014. AS PER THE LATEST CBDT CIRCULAR NO.21/2015 DATED 10.12.2015 PROHIBITS FILING OF APP EAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS. ADM ITTEDLY, TAX ON EFFECT ON THE ADDITION DELETED BY THE LD.CIT(A) IS RS.3,31 ,997/- WHICH IS BELOW THE LIMIT OF RS.10 LAKHS PRESCRIBED BY THE CBDT. FU RTHER, THE ABOVE CIRCULAR HAS RETROSPECTIVE EFFECT, AND THEREFORE, A PPEALS OF THE REVENUE PENDING AS ON THE DATE AND FALLING WITHIN THE MONET ARY LIMIT ARE ALSO COVERED BY THE CIRCULAR AND THEREFORE PRESENT APPEA L IS NOT MAINTAINABLE. 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 FALLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT ITA NO.769/AHD/2014 3 LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D HAVING LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 22 TH MARCH, 2017. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER