The Asstt. Commissioner of Income Tax, Circle-1(3), Ahmedabad V. Ken Securities Ltd., Ahmedabad

ITSSA 202/AHD/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 4613 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 14-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 23-10-2019
• Assessment Year: 2006-2007
• Appeal Filed On: 04-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PF JAIN
• Keywords: Retrospective amendment; Tax effect
• Section: 271(1)(c); 201; 268A; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE A CIT, CENTRAL CIRCLE - 1(3 ), AHMEDABAD - 380015 (APPELLANT) VS KEN SECURITIES LTD. C/O PARAS F. JAIN, C.A. 102, 1 ST FLOOR, DWARKESH COMPLEX, OPP. PATEL VAS, MITHAKHALI, AHMEDABAD - 6 PAN:AACCK6985D (RESPONDENT) REVENUE BY : S H RI VINOD TANWANI , SR. D . R. ASSESSEE BY: SHRI P.F. JAIN , A.R. DATE OF HEARING : 23 - 10 - 2 019 DATE OF PRONOUNCEMENT : 14 - 11 - 2 019 / O RDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL FOR A. Y. 2006 - 07 , ARI SES FROM ORDER OF THE CIT(A) - 12, AHMEDABAD DATED 20 - 01 - 2 017 , IN PROCEEDINGS UNDER SECTION 147 R.W.S. 144 AND 271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T (SS) A NO . 202 / A HD/ 20 17 A SS ESSMENT YEAR 2006 - 07 I.T (SS) .A NO. 202 /AHD/20 17 A.Y. 2006 - 07 PAGE NO ACIT VS. M/S. KEN SECURITIES LTD. 2 2 . AT THE OUTSET, AFTER GOING THROUGH THE GROUNDS OF APPEAL AND THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES BELOW, A QUERY WAS RAISED BY THE BENCH AS TO APPLICABILITY AND MAINTAINABILITY OF THE APPEAL FILED BY THE REVENUE IN VIEW OF RECENT CBDT CIRCULAR NO. 17/2019 DATED 08 - 08 - 2019 RESTRICTING THE FILLING OF THE APPEAL BY THE REVENUE WH ERE THE TAX EFFECT IS BELOW RS.5 0 LAKHS, THE LD. DR DID NOT DISPUTE THE SAME AND SUBMITTED THAT THE ISSUE IS LEFT TO THE TRIBUNAL TO BE DECIDED IN ACCORDANCE WIT H LAW. 3 . WE FIND THAT THE APPEAL O F THE REVENUE IS PRESENTED ON 4.5 .2017. ON 8.8.2019 THE CBDT HAS ISSUED INSTR UCTIONS BEARING NO. 17 OF 2019 UNDER FILE N O. F. NO. F. NO. 279/MISC. 142/2007 - ITJ(PT.) 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.5 0 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTI ONS 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 THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH AP PEA L IS FILED, IS LESS THAN RS.5 0 LAKHS. FURTHER, THE CASE OF THE REVENUE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE - VERIFICATION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MORE OR REVENUE S CASE FALLS WI THIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED I.T (SS) .A NO. 202 /AHD/20 17 A.Y. 2006 - 07 PAGE NO ACIT VS. M/S. KEN SECURITIES LTD. 3 WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPE AL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 4 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT O N 14 - 11 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL ME MBER ACCOUNTANT MEMBER AHMEDABAD : DATED 14 /11 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,