The DCIT, Central Circle-2(3), Ahmedabad V. Shyam Rath Restaurant, Ahmedabad

ITSSA 168/AHD/2013

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6423 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 5 month(s) 21 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 24-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-08-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 03-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRASHANT B SHAH
• Keywords: Tax effect
• Section: 143(3); 153A

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER () ./ I.T(SS).A. NO. 168/AHD/2013 WITH CROSS OBJECTION NO. 168/AHD/2013 ( ASSESSMENT YEAR : 2006-07) DY. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-2(3), AHMEDABAD / VS. SHYAM RATH RESTAURANT 107, BHARVI TOWERS, CTM CROSS ROAD, AMRAIWADI, AHMEDABAD - 380025 ./ ./ PAN/GIR NO. : ABRFS6557L ( APPELLANT ) .. RESPONDENT/CROSS OBJECTOR / REVENUE BY : SHRI ALOK SINGH, CIT.D.R. / ASSESSEE BY : SHRI PRASHANT B. SHAH, A.R. DATE OF HEARING 10/10/2019 !'#$ / DATE OF PRONOUNCEMENT 24/10/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL AND CROSS OBJECTION HAVE BEEN FILED AT THE INSTANCE OF THE REVENUE AND ASSESSEE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-III, AHMEDABAD (CIT(A) IN SHORT), DATED 25.02.2013 ARISING IN THE ASSESSMENT ORDER DATED 23 .12.2011 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 153A R.W.S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 2006-07. IT(SS)A NO. 168/AHD/13 WITH CO NO. 168/AHD/13 [DCIT VS.SHYAM RATH RESTAURANT] A.Y. 2006-07 - 2 - 2. THE GRIEVANCES, IN REVENUES APPEAL AND ASSESSEE S CROSS OBJECTION, RAISED BEING COMMON, BOTH THE CASES WERE HEARD TOGETHER AND DISPOSED OF BY THE COMMON ORDER. 3. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA D AS UNDER:- 1 THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.61,00,000/-, MADE ON ACCOUNT OF INITIAL INVESTME NT, WHICH WAS ADDED ON PROTECTIVE BASIS. 2. IN THE PROCESS, THE LD. CIT(A) FAILED TO TAKE COGNIZANCE OF THE FACT THAT ADDITION OF RS.61,00,000/- HAS NOT ATTAINED FINALITY. 4. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 279/MISC/M-93/2018-ITJ DT. 20/08/2019 HAS OBSERVED THAT CIRCULAR NO.17/2019 DATED 08/08/2019 RELATING TO ENHANCEMENT OF MONETARY LIMITS IS ALSO APPLICABLE T O ALL PENDING APPEALS. AS PER AFORESAID CIRCULAR READ WITH INSTRUCTION, AL L 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, T HE 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 REQUIR ED TO BE DISMISSED IN LIMINE . 5. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APP EAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICA BILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. IT(SS)A NO. 168/AHD/13 WITH CO NO. 168/AHD/13 [DCIT VS.SHYAM RATH RESTAURANT] A.Y. 2006-07 - 3 - 7. THE LD.AR FOR THE ASSESSEE AT THE TIME OF HEARIN G STATED THAT ASSESSEE DOES NOT WANT TO PRESS THE CROSS OBJECTION. THE CR OSS OBJECTION IS ACCORDINGLY DISMISSED AS NOT PRESSED. 8. IN THE COMBINED RESULT, THE APPEAL OF THE REVENU E IS DISMISSED, WHEREAS ASSESSEES CROSS OBJECTION IS DISMISSED AS NOT PRESSED. SD/- SD/- (RAJPAL YADAV) (PRADIP KU MAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBE AHMEDABAD: DATED 24/10/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- '. / REVENUE 2. / ASSESSEE ). *+, - / CONCERNED CIT 4. -- / CIT (A) 0. 123 455+,6 +,$6 78* / DR, ITAT, AHMEDABAD 9. 3:; < / GUARD FILE. BY ORDER / 6 /7 +,$6 78* THIS ORDER PRONOUNCED IN OPEN COURT ON 24/10/201 9