The ACIT, Circle 3, JAMNAGAR V. Shri Mansukhlal Karsandas Patel(HUF), JAMNAGAR

ITA 99/RJT/2011

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0083 (ITAT-RAJKOT)
• Duration Of Justice: 5 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-11-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 25-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: MJ RANPURA
• Keywords: Audit objection; Tax effect
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO. 99/RJT/2011 / ASSESSMENT YEAR : 2005-06 ACIT, CIRCLE-3, JAMNAGAR VS MANSUKHLAL KARSANDAS PATEL-HUF C/O. M/S. VIRANI & CO., GRAIN MARKET, JAMNAGAR PAN : AAGHM 0643 D / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI AVINASH KUMAR, SR DR ASSESSEE BY : SHRI M.J. RANPURA, AR / DATE OF HEARING : 09/11/2016 / DATE OF PRONOUNCEMENT: 10/11/2016 / O R D E R PER R.P. TOLANI, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), JAMNAGAR DATE D 20.01.2011 FOR ASSESSMENT YEAR 2005-06. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER :- 1. THE CIT(A) ERRED IN LAW AND IN FACTS IN HOLDING THE ACTION OF THE ASSESSING OFFICER IN REOPENING THE ASSESSMENT PROCE EDINGS UNDER THE PROVISIONS OF SECTION 147 OF THE ACT AS INVALID. 2. THE CIT(A) ERRED IN LAW AND IN FACTS IN DELETING TH E ADDITION OF RS.20,00,000/- MADE ON ACCOUNT OF DISALLOWANCE CLAI M OF DEDUCTION U/S 54EC OF THE ACT. 3. THE CIT(A) FAILED TO APPRECIATE THE FACT THAT UNDER THE PROVISIONS OF SECTION 54EC OF THE ACT, SIX MONTHS PERIOD IS TO BE RECKONED FROM THE DATE OF TRANSFER OF SUCH ASSETS AND NO FROM THE DATE OF ACTUAL RECEIPT OF CONSIDERATION AND AS SUCH THE ASSESSEE WAS NOT ELIG IBLE TO CLAIM DEDUCTION U/S 54EC OF THE ACT. ITA NO. 99/RJT/2011 ACIT VS. MANSUKHLAL KARSANDAS PATEL AY : 2005-06 2 4. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE 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 . 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LAC S. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 10 TH NOVEMBER, 2016 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (R.P. TOLANI) JUDICIAL MEMBER AHMEDABAD; DATED 10/11/2016 *BIJU T., SR. PS ITA NO. 99/RJT/2011 ACIT VS. MANSUKHLAL KARSANDAS PATEL AY : 2005-06 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , / DR, ITAT, RAJKOT 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, RAJKOT