The ITO, Ward-2(2), JAMNAGAR V. M/s. Shree Krishna Enterprise, JAMNAGAR

ITA 98/RJT/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2224 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 14-03-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 31-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BEN CH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] (BEFORE SHRI ANIL CHATURVEDI, A.M. & SHRI S. S. GOD ARA, J.M.) ( , , ) ITA NO. 98/RJT/2014 (ASSESSMENT YEAR: 2006-07) INCOME TAX OFFICER, WARD 2(2), JAMNAGAR VS. M/S. SHRI KRISHNA ENTERPRISE, PLOT NO.478/479, GIDC, PHASE-II, DARED, JAMNAGAR PAN: AANFS9512J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C. S. ANJARIA, D.R. RESPONDENT BY : SHRI MEHUL RANPURA, C.A. DATE OF HEARING : 14-03-201 6 DATE OF PRONOUNCEMENT : 15-03-2016 ( )/ ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A), JAMNAGAR, DATED 04.11.2013 FOR A.Y. 2006-07. 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER:- [1] THE LD. CIT(A) HAS ERRED ON THE FACTS AND LAW BY CANCELLING THE PENALTY OF RS.3,96,280/- U/S.271(1)(C) LEVIED BY THE A.O. 3. BEFORE US, AT THE OUTSET, LD. A.R. SUBMITTED THA T THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. THE LD. D.R. FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFO RESAID CBDT CIRCULAR. ITA NO 98/RJT/2014 . A.Y. 2006-07 2 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENU E, WE FIND THAT REVENUE IS AGGRIEVED BY THE CANCELLATION OF THE PENALTY OF RS .3,96,280/- U/S.271(1)(C) OF THE ACT. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIR ECT TAXES (CBDT) DATED 10.12.2015 ( CIRCULAR NO. 21 OF 2015), NO DEPARTME NT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOM E TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PEN DING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE DEMAND W HICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN RS.10 LACS AND IN THE ABSENCE OF ANY MA TERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRCULAR, WE ARE OF THE V IEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID C BDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LO W TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WIT HOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 15/03/2016 SD/- SD/- (S. S. GODARA) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED. 15/03/2016 S K SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. ITA NO 98/RJT/2014 . A.Y. 2006-07 3 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJKOT