The Dy. Commissioner of Income Tax, Central Circle-2(3), Ahmedabad V. Oswal Salt & Chemicals Inds., Gandhidham-Kutch

ITSSA 142/AHD/2016

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3692 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 19-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHAN VYAS
• Assessee Lawyers: K C THAKER
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ IT(SS)A.NO.142/AHD/2016 WITH CO NO.102/AHD/2016 / ASSTT. YEAR: 2006-07 DCIT, CENT.CIR.2(3) AHMEDABAD. VS OSWAL SALT & CHEMICALS INDS. MAITRI BHAVAN PLOT NO.18 SECTOR 8 GANDHIDHAM-KUTCH 370201. PAN : AACFK 1906 F ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI KISHAN VYAS, CIT-DR ASSESSEE BY : SHRI K.C. THAKER, AR / DATE OF HEARING : 12/04/2018 / DATE OF PRONOUNCEMENT: 13 /04/2018 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-12, AHMEDABAD DATED 21.1.2016 PASSED FOR THE ASSTT.YEAR 2006-07. ON RECEIPT OF NOTICE ON REVENUES APPEAL, THE ASSESSEE HAS FILED CROSS OBJECTION BEARING NO.102/AHD/2016. 2. REVENUE HAS RAISED MAINLY TWO GROUNDS OF APPEAL, BY WHICH, IT HAS CHALLENGED ACTION OF THE LD.CIT(A) IN DELETING ADDI TION OF RS.2,52,368/- BEING IT(SS)A NO.142 /AHD/2016 WITH CO 2 INTEREST PAYMENT AND ADDITION ON ACCOUNT OF WASHING /HANDLING LOSS OF RS.18,33,602/-. 3. AT THE VERY OUTSET, THE LD.COUNSEL FOR THE ASSES SEE HAS DRAWN OUR ATTENTION TOWARDS RECENT CBDT CIRCULAR RESTRICTING FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BEL OW RS.10 LAKHS. HE POINTED OUT THAT TAX EFFECT IN THE PRESENT CASE IS BELOW MONETARY LIMIT PRESCRIBED BY THE CBDT, AND THEREFORE, APPEAL OF TH E REVENUE IS LIABLE TO DISMISSED AT THE THRESHOLD. WHEN THE BENCH POINTE D OUT TO THE LD.DR ABOUT MAINTAINABILITY REVENUES APPEAL BEFORE THE TRIBUNA L IN VIEW OF RECENT CBDT CIRCULAR RESTRICTING FILING OF APPEAL BEFORE THE TR IBUNAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS, THE LD.DR WAS UNABLE TO DISPUTE THE SAME, BUT LEFT TO THE TRIBUNAL TO DECIDE THE APPEAL IN ACCORDANCE WITH LA W. 4. WE HAVE HEARD LD.DR AND GONE THROUGH THE IMPUGNE D ORDERS. WE FIND THAT APPEAL OF THE REVENUE, WHICH IS FILED ON 12.4. 2015 IS HIT BY RECENT CBDT INSTRUCTION NO.21 OF 2015 DATED 10.12.2015 WHEREBY THE BOARD HAS PROHIBITED ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPE AL BEFORE 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, TAX EFFECT ON THE ADDITIONS DELETED BY THE LD.CIT(A) AND CONTESTED BY THE REVENUE, WOULD BE LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPE AL DESERVES TO BE DISMISSED AS BEING FILED IN VIOLATION OF THE ABOVE CBDT INSTR UCTION. IT IS THUS DISMISSED. 5. IT IS FURTHER OBSERVED THAT ON RE-VERIFICATION A T THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE OR IT FA LLS WITHIN THE AMBIT OF IT(SS)A NO.142 /AHD/2016 WITH CO 3 EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEP ARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 6. SO FAR AS CO OF THE ASSESSEE IS CONCERNED, THE S AME IS NOT PRESSED BY THE ASSESSEE FOR ADJUDICATION, ACCORDINGLY, THE SAM E IS DISMISSED FOR WANT OF PROSECUTION. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT, AND CROSS OBJECTION OF THE ASSESSEE IS DISMISSED FO R WANT OF PROSECUTION. ORDER PRONOUNCED IN THE COURT ON 13 TH APRIL, 2018 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER