The ACIT, Central Circle-2(2), Ahmedabad V. John Energy Ltd., Mehsana

ITSSA 19/AHD/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0351 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 14-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 30-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: TUSHAR HEM ANI SR A
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3); 153A; 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (CONDUCTED THROUGH VIRTUAL COURT) BEFORE: SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEM BER THE ACIT, CENTRAL CIRCLE-2(2), AHMEDABAD (APPELLANT) VS M/S. JOHN ENERGY LTD., PLOT NO. 220, GIDC ESTATE, NAGALPUR, MEHSANA, PAN: AAACI5184F (RESPONDENT) REVENUE BY: SHRI VINOD TANWANI, CIT-D.R. ASSESSEE BY: SHRI PARIMAL SINGH B P ARMAR, & SHRI TUSHAR HEM ANI, SR. A.RS. DATE OF HEARING : 12-07-2021 DATE OF PRONOUNCEMENT : 14-07-202 1 /ORDER PER BENCH:- THESE THREE APPEALS FILED BY REVENUE FOR A.Y. 2010- 11, 2012-13 & 2015-16 ARISE FROM ORDER OF THE CIT(A)-12, AHMEDA BAD DATED 28-11-2018, IN PROCEEDINGS UNDER SECTION 153A R.WS.. 143(3) AN D 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. AT THE OUTSET, AFTER GOING THROUGH THE GROUNDS OF A PPEALS AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WAS RAISED BY THE BENCH AS TO APPLICABILITY AND MAINTAINABILITY OF TH E APPEALS FILED BY THE IT(SS)A NOS. 19, 21 & 24 /AHD/2019 A. Y. 2010-11, 2012-13 & 2015-16 I.T(SS).A NOS. 19, 21 & 24/AHD/2019 A.Y. 2010-11, 2012-13 & 2015-16 PAGE NO ACIT VS. M/S. JOHN ENERGY LTD. 2 REVENUE IN VIEW OF RECENT CBDT CIRCULAR NO. 17/2019 DATED 8.8.2019 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENU E WHERE THE TAX EFFECT IS BELOW RS.50 LAKHS, THE LD. DR DID NOT DISPUTE THE S AME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WITH LAW. 3. WE FIND THAT THE APPEALS OF THE REVENUE ARE PRES ENTED ON 30.1.2019. ON 8.8.2019 THE CBDT HAS ISSUED INSTRUCTIONS BEARIN G NO. 17 OF 2019 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.50 LAKHS . THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEA NING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO . IN THE PRESENT CASE, TAX EFFECT ON THE TOTAL INCOME ASSESSED MINUS THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY TH E AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH APPEAL IS FILED, IS LESS THAN RS.50 LAKHS. FURTHER, THE CASE OF THE REVENUE DOES NOT FALL WITH IN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW TH E ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX AC T, WE ARE OF THE VIEW THAT THE PRESENT APPEALS OF THE REVENUE DESERVE TO BE DISMISSED. THEY ARE ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MO RE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRC ULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN I.T(SS).A NOS. 19, 21 & 24/AHD/2019 A.Y. 2010-11, 2012-13 & 2015-16 PAGE NO ACIT VS. M/S. JOHN ENERGY LTD. 3 VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE D ISMISSED DUE TO LOW TAX EFFECT. 4. IN THE RESULT, ALL THE THREE APPEALS OF THE REVE NUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14-07-2021 SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD : DATED 14/07/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,