DCIT, Central Circle-1(4), Ahmedabad V. Shri Ravjibhai Manilal Patel, Ahmedabad

ITSSA 132/AHD/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5434 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-10-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 04-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Tax effect
• Section: 50C; 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER IT(SS)A NO.132/AHD/2018 WITH CO NO.111/AHD/219 / ASSTT.YEAR : 2013-14 DCIT, CENT.CIR.1(4) AHMEDABAD. VS. SHRI RAVJIBH AI MANIBHAI PATEL 01, SARITA BUNGALOWS-3 OPP: DESHAVAR HOTEL MOTERA, SABARMATI AHMEDABAD 380 005. PAN : AALPP 3666 J ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI ALOK SINGH, AR ASSESSEE BY : SHRI NUPUR SHAH, AR / DATE OF HEARING : 03/10/2019 ! / DATE OF PRONOUNCEMENT: 03/10/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-11, AHMEDABAD DATED 6.3.2018 PASSED FOR THE ASSESSMENT YEAR 2013-14. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD .CIT(A) IN DELETING TWO ADDITIONS VIZ. ADDITION OF RS.10.00 LA KHS ON ACCOUNT OF UNACCOUNTED COMMISSION, AND ADDITION OF RS.2,54,59, 000/- MADE BY THE AO UNDER SECTION 50C OF THE INCOME TAX ACT, 1961. 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE OUTSET SU BMITTED THAT APPEAL OF THE REVENUE IS NOT MAINTAINABLE, BECAUSE THE AGG REGATE OF TWO ADDITIONS DOES NOT GIVE TAX EFFECT OF MORE THAN RS. 50 LAKHS, THEREFORE, IN VIEW OF RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8. 8.2019, IT(SS)A NO.132 /AHD/2018 WITH CO 2 DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL B EFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRU CTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APP EAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. THE LD.D R DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCULAR AND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE DISP UTED ADDITION IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW TH E ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCO ME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE A PPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN VIEW OF SUMMARY DISMISSAL OF THE REVENUES AP PEAL, THE LD.COUNSEL FOR THE ASSESSEE DOES NOT PRESS THE CO OF ASSESSEE S FOR ADJUDICATION. THUS, CO IS DISMISSED AS NOT PRESSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ASSESSEES CO IS ALSO DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE COURT ON 3 RD OCTOBER, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 3/10/2019