The ITO, Ward -3(1)(1), Ahmedabad V. Shri Vinod Vitthalbhai Patel, Ahmedabad

ITA 804/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1149 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 01-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJEEV DEV
• Assessee Lawyers: AFAQ SAIYAD
• Keywords: Business income; Tax effect
• Section: 143(3)

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 804/AHD/2016 ( ASSESSMENT YEAR : 2009-10) ITO WARD-3(1)(1), AHMEDABAD / VS. SHRI VINOD VITTHALBHAI PATEL 3, FRIENDS AVENUE, B/H. RAJPATH CLUB, NR. PAKWAN CHAR RASTA, BODAKDEV, AHMEDABAD ./ ./ PAN/GIR NO. : ACMPP3617L ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SANJEEV DEV, SR. D.R. / RESPONDENT BY : AFAQ SAIYAD, A.R. DATE OF HEARING 11/09/2018 !'# / DATE OF PRONOUNCEMENT 17/09/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-9, AHMEDABA D (CIT(A) IN SHORT), DATED 04.01.2016 ARISING IN THE ASSESSME NT ORDER DATED 10.03.2015 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 143(3) ITA NO. 804/AHD/16 [ITO VS. SHRI VINOD V. PATEL] A.Y. 2009-10 - 2 - R.W.S. 147 OF THE INCOME TAX ACT, 1961 (THE ACT) CO NCERNING ASSESSMENT YEAR 2009-10. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.55,00,000/- MADE ON ACCOUNT OF DEEMED DIVIDED U/ S.2(22) OF THE ACT ON PROTECTIVE BASIS. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN TREATING THE INCOME OF (-) RS.39,16,018/- FROM SHARE TRANSACTIONS AS CAPITAL G AIN, INSTEAD OF BUSINESS INCOME AS ASSESSED BY AO. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE I S HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON ITA NO. 804/AHD/16 [ITO VS. SHRI VINOD V. PATEL] A.Y. 2009-10 - 3 - SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 17/09/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 17/09/201 8