The Dy. CIT, Circle-3, Ahmedabad V. M/s. Vrudev Finstock Pvt.Ltd., Ahmedabad

ITA 90/AHD/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9792 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 09-12-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 10-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Speculation loss; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIPKUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA.NO.90/AHD/2014 WITH CO NO.85/AHD/2014 ASSTT.YEAR : 2008-2009 DCIT , CIR . 3 AHMEDABAD. M / S . VRUDEV FINSTOCK PVT . LTD . 116, B-WING, KAMDHENU COMPLEX NR.PANJARA POLE AMBAWADI, AHMEDABAD. IJ / (APPELLANT) KL IJ / (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI PRASOON KABRA, SR.DR / DATE OF HEARING : 09/12/2016 / DATE OF PRONOUNCEMENT: 09/12/2016 MN/ O R D E R PER SHRI RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF THE LD.CIT(A)-III, AHMEDABAD DATED 17.10.2013 PASSED FO R THE ASSTT.YEAR 2009- 09. ON RECEIPT OF NOTICE ON REVENUES APPEAL, THE ASSESSEE HAS ALSO FILED CROSS OBJECTION BEARING NO.85/AHD/2014. ACCORDINGL Y, WE DECIDE TO ADJUDICATE REVENUES APPEAL AS WELL AS ASSESSEES C O BY THIS COMMON ORDER. ITA NO.90/AHD/2014 WITH CO 2 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. THEREFORE, WE PROCEED TO DECIDE THE APPEAL AND THE CO EX PARTE QUA THE ASSESSEE-RESPONDENT. 3. SOLE GRIEVANCE OF THE REVENUE IS THAT LD.CIT(A) HAS ERRED IN ALLOWING THE CLAIM OF ASSESSEE FOR SPECULATIVE LOSS OF RS.13 ,95,081/- ON THE SHARE TRANSACTION. 4. AT THE OUTSET, A QUERY FROM THE BENCH, AS TO ADM ISSIBILITY OF REVENUES APPEAL, IN VIEW OF LATEST CBDT INSTRUCTION, WHEREIN THE CBDT PROHIBITED THE REVENUE FROM FILING OF APPEAL BEFORE THE TRIBUNAL W HERE TAX EFFECT IS BELOW RS.10 LAKHS, THE LD.DR IS UNABLE TO CONTROVERT THE SAME. 5. WE FIND THAT THE REVENUE HAS FILED THE ABOVE APP EALS BEFORE THE TRIBUNAL ON 10.1.2014. AS PER THE LATEST CBDT CIRC ULAR NO.21/2015 DATED 10.12.2015, THE CBDT HAS RESTRICTED THE DEPARTMENT NOT TO FILE APPEAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS BEFORE THE TRIBUNAL . ADMITTEDLY, TAX EFFECT IN THIS APPEAL OF THE REVENUE IS BELOW RS.10 LAKHS, AN D THEREFORE HIT BY THE ABOVE CBDT CIRCULAR. FURTHER, THE ABOVE CIRCULAR H AS RETROSPECTIVE EFFECT, AND THEREFORE, APPEAL OF THE REVENUE PENDING AS ON THE DATE AND FALL WITHIN THE MONETARY LIMIT, IS ALSO COVERED BY THE CIRCULAR , AND THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE. IT IS, ACCORDINGLY, DI SMISSED. 6. IT IS FURTHER OBSERVED THAT IF ON RE-VERIFICATIO N AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR I T FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DE PARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. ITA NO.90/AHD/2014 WITH CO 3 7. SO FAR ASSESSEES CO IS CONCERNED, WE FIND THAT THE SAME IS SIMPLY IN SUPPORT OF ORDER OF THE LD.CIT(A), AND HENCE NO MER IT FOR CONSIDERATION. THE CO IS ACCORDINGLY DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE AND CO OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 9 TH DECEMBER, 2016 AT AHMEDABAD. SD/- SD/- (PRADIPKUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER