The ACIT, Central Circle-1(1), Ahmedabad V. Shri Kamlesh R.Khanchandani, Ahmedabad

ITA 779/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1021 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-07-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 15-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMAL I MEHTA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI N. K. BILLAIYA , ACCOUNTANT MEMBER. ITA. NO.779/AHD/2013 (ASSESSMENT YEAR:2005-06) ACIT, CENTRAL CIRCLE-1(1), AHMEDABAD APP ELLANT VS. SHRI KAMLESH R. KHANCHANDANI 16, NUTAN SOCIETY, B/H SUVIDHA SHOPPING CENTRE, PALDI, AHMEDABAD RE SPONDENT PAN: APSPK9829G /BY APPELLANT :SHRI VIMAL I. MEHTA, SR.D.R. /BY RESPONDENT :SHRI UMAID SINGH BHATI, A.R. /DATE OF HEARING : 27.07.2016 /DATE OF PRONOUNCEMENT : 27.07.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS)-I, AHMEDABA D, DATED 07.12.2012 FOR A.Y. 2005-06 ON FOLLOWING GROUNDS:- ITA NO.779/AHD/13 A.Y. 05-06 [ACIT VS. SHRI KAMLESH R. KHANCHANDANI] PAGE 2 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DEC LARING THE ORDER AS AB-INITIO VOID DESPITE THE FACT THAT S HRI VIVEK THADANI IS THE POWER OF ATTORNEY HOLDER OF TH E ASSESSEE. 2. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.22,00,000/- ON ACCOUNT OF INVESTMENT IN THE PROPERTY U/S.69B OF THE ACT ON SUBSTANTIVE BASIS. 2. BEFORE US, AT THE OUTSET, LD. AUTHORIZED REPRESENTA TIVE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NE EDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 2.1 WE HAVE HEARD THE LD. D.R. AND PERUSED THE MATE RIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, WE PRIMA-FACIE FIND THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMEN T OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.20 15 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS AR E TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRES ENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITION S WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENU E TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED ITA NO.779/AHD/13 A.Y. 05-06 [ACIT VS. SHRI KAMLESH R. KHANCHANDANI] PAGE 3 BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORES AID CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMI T PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBD T CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EF FECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT C IRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. IN SUCH CIRCUMSTANCES, WE D ISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINIO N ON MERITS OF THE CASE. 3. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS THE 27 TH DAY OF JULY, 2016. SD/- SD/- (N. K. BILLAIYA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD: DATED 27/07/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE $%&%'( ) / CONCERNED CIT 4 )- / CIT (A) ,-./00'(1 '(123& / DR, ITAT, AHMEDABAD 4/5678 / GUARD FILE. BY ORDER / 1 /2% '(123&