The ITO, Ward-4, Veraval V. Padamshi Damjibhai Bhensla, Veraval

ITSSA 108/RJT/2018

AI Insights

The case involves an appeal by the Income Tax Officer (ITO), Ward-4, Veraval against Shri Padamshi Damji Bhensla concerning the assessment year 2015-16. The appeal was directed against the order of the CIT(A)-11, Ahmedabad, which had allowed relief to the assessee under Section 271AAB of the Income Tax Act, 1961. The Revenue contended that the CIT(A) erred in allowing relief without appreciating that the disclosure of unaccounted income amounting to Rs. 1,50,00,000 was made to cover up cash and other assets seized during a search operation under Section 132 of the Act, thus attracting a penalty under Section 271AAB(1)(b). However, due to the revised monetary threshold for tax effect as per the CBDT Circular, the appeal was dismissed without further examination of these substantive issues.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 138319 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 20-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 03-09-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (THROUGH E-COURT) BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T(SS).A. No.108/Rjt/2018 (Assessment Year: 2015-16) ITO Ward-4, Veraval बनाम/ Vs. Shri Padamshi Damji Bhensla Bhidiya Plot, Somnath Road, Veraval थायीलेखासं./जीआइआरसं./PAN/GIR No.: ABVPB5859Q (अपीलाथ /Appellant) .. ( यथ / Respondent) अपीलाथ ओर से/Appellant by : Shri Shramdeep Sinha, CIT DR यथ क ओरसे / Respondent by: Shri Mehul Ranpura, AR स ु नवाईक तार ख/Date of Hearing 18/04/2023 घोषणाक तार ख /Date of Pronouncement 21/04/2023 आदेश/O R D E R PER WASEEM AHMED - AM: The appeal filed by the Revenue for A.Y. 2015-16, arise from order of the CIT(A)-11, Ahmedabad dated 18.06.2018, in proceedings under Section 271AAB of the Income Tax Act, 1961; in short “the Act”. 2. The ground of appeal raised by the Revenue reads as under:- “1. On the facts and circumstances of the case and in law, the Learned CIT(A)-11, Ahmedabad, has erred in allowing the relief to the assessee without appreciating the fact that the disclosure of unaccounted income of Rs. 1,50,00,000/- is made pursuant to search action u/s. 132 of the I.T. Act, 1961 to cover up cash and other assets seized during the course of search and assessee is liable for penalty u/s.271AAB(1)(b) of the I.T. Act, 1961. 2. On the facts and in the circumstances of the case and in law, the Learned CIT(A) ought to have upheld the order of the Assessing Officer. 3. It is therefore, prayed that the order of the CIT(A) be set aside and that of the AO be restored to the above extent. IT(SS)A No. 108/RJT/2018 [ITO vs. Shri Padamshi Damjibhai Bhensla] A.Y. 2015-16 2 4. Any other ground that the Revenue may raise before or during the proceedings before the Hon’ble ITAT.” 3. At the time of hearing, it was submitted by the Ld.AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 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 where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine. 4. The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner. 5. In the result, the appeal of the Revenue is dismissed. Sd/- Sd/- (MADHUMITA ROY) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 21/04/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं$धत आयकर आय ु &त / Concerned CIT 4. आयकर आय ु &त(अपील) / The CIT(A). 5. 'वभागीय *त*न$ध, आयकर अपील य अ$धकरण, राजोकट / DR, ITAT, Rajkot 6. गाड- फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, राजोकट / ITAT, Rajkot This Order pronounced in Open Court on 21/04/2023