The ITO, Ward-4(2), Ahmedabad V. Karnavati Safe Vaults Pvt.Ltd., Ahmedabad

ITA 919/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1425 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 1996-1997
• Appeal Filed On: 03-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEPAK SUTURIA
• Keywords: Retrospective amendment; Tax effect
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.919/AHD/2013 / ASSTT. YEAR: 1996-1997 ITO, WARD - 4(2) AHMEDABAD. VS KARNAVATI SAFE VAULTS P.LD. 2235, KAKUBHAI BUILDING MAHURAT POLE, MANEKCHOWK, AHMEDABAD. PAN : AAACK 8431 C ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI KARAN SHAH, AR REVENUE BY : SHRI DEPAK SUTURIA, SR.DR / DATE OF HEARING : 07/06/2016 / DATE OF PRONOUNCEMENT: 08/06/2016 $%/ O R D E R THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINS T THE ORDER OF THE LD.CIT(A)-XXI DATED 31.1.2013 PASSED FOR THE ASSTT. YEAR 1996-97. 2. SOLITARY GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) IS ERRED IN DELETING THE ADDITION OF RS.20,00,000/- WHICH WAS A DDED BY THE LD.AO UNDER SECTION 68 OF THE INCOME TAX ACT. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE S UBMITTED THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LAKHS, AND THE REFORE, APPEAL FILED BY THE REVENUE IS NOT ADMISSIBLE, IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10.12.2015. BY VIRTUE OF THIS INSTRUCTION, THE BOA RD HAS RESTRAINED THE DEPARTMENT NOT TO FILE APPEAL BEFORE THE TRIBUNAL W HERE THE TAX EFFECT IS BELOW RS.10 LAKHS, AND THEREFORE, APPEAL OF THE REV ENUE LIABLE TO BE ITA NO.919/AHD/2013 2 DISMISSED IN LIMINE . THE LD.DR COULD NOT CONTROVERT TO THIS SUBMISSIO N OF THE LD. COUNSEL FOR THE ASSESSEE. 4. WE FIND THAT THE REVENUE HAS FILED THIS APPEAL ON 3.04.2013. 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, ASSESSED INCOME COMPUTED BY THE AO IS RS.20,12,150/- AND THE ADDITI ON DELETED BY THE LD.CIT(A) IS RS.20,00,000/-. THE TAX EFFECT ON THI S ALLEGED INCOME OF RS.20,00,000/- WOULD BE LESS THAN RS.10 LAKHS. THE REFORE, THE PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, W HILE HEARING THE APPEAL, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX E FFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INST RUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 8 TH JUNE, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 08/06/2016