The DCIT, Central Circle-1, Baroda V. Shri Dhaval D. Patel, Baroda

ITSSA 207/AHD/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8661 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 04-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 14-04-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 04-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 268A; 153C

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL , D BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI WASEEM AHMED , ACCOUNTANT MEMBER ./ IT (SS) A NO. 207/AHD/2018 / ASSTT. YEAR: 2013 - 2014 D.C.I.T., CENTRAL CIRCLE - 1, BARODA - 390007. VS. SHRI DHAVAL D. PATEL, 901, ARUNDEEP, RACE COURSE CIRCLE, VADODARA - 390007. PAN : AEKPP4961R (APPLICANT) ( RESPON D ENT ) REVENUE BY : SHRI MOHD USMAN , C.I.T.D .R ASSESSEE BY : SHRI SUNIL TALATI, A . R / DATE OF HEARING : 03 / 03 / 2021 / DATE OF PRONOUNCEMENT: 04 / 03 /2021 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE A GAINST THE ORDER OF THE LEARNED COMM ISSIONER OF INCOME TAX (APPEALS) - 1 2 , AHMEDABAD , DATED 27/03/2018 ARISING IN THE MATTER OF ASSESSMENT ORDER DATED 04/03 /2016 IT (SS) A NO.207/AHD/2018 ASSTT. YEAR 2013 - 1 4 2 PASSED UNDER S. 153C R.W.S . 143(3) OF THE INCOME TAX ACT, 1961 ( HERE - IN - AFTER REFERRED TO AS 'THE ACT') RELEVANT TO THE ASSESSMENT YEAR 2013 - 20 14 . 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF ANNUAL LETTABLE VALUE (ALV) AS INCOME FROM HOUSE PROPERTY OF RS.63,37,765/ - 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF INTEREST EXPENDITURE OF RS.99,21,084/ - 3. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD.CIT(A) MAY BE SET - ASIDE AND THAT OF ASSESSING OFFICER MAY BE RESTORED TO THE ABOVE EXTENT. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR WITHDRAW ANY GROUND(S) OF APPEAL EITHER BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. 3 . BEFORE GOING TO THE MERIT OF THE CASE , TH E LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT TAX EFFECT ON THE DISPUTED TOTAL ADDITIONS IS BELOW RS.50 LAKHS, THEREFORE, BY VIRTUE OF RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. THE LD. AR ALSO FILED THE WORKING OF TAX IN DISPUTE WH ICH IS AVAILABLE ON R ECORD . PER CONTRA, THE LD. DR DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCULAR AND ALSO TAX EFFECT BEING BELOW RS.50 LAKHS IN THE ASSESSEE S CASE. HE, HOWEVER, LEFT THE ISSUE TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MA TTER. 4 . AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL OF THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CITED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFF ECT ON THE DISPUTED ADDITION IS LESS THAN RS.50 LAKHS, AND THEREFORE, 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 AC CORDINGLY DISMISSED. IT (SS) A NO.207/AHD/2018 ASSTT. YEAR 2013 - 1 4 3 4.1 HOWEVER, IT IS OBSERVED THAT IN CASE ON RE - VERIFICATION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT IS MORE, OR REVENUE S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMEN T WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. O RDER PRONOUNCED IN THE COURT ON 04 /03 / 2021 AT AHMEDABAD. SD/ - SD/ - (MAHAVIR PRASAD ) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (TRUE COPY) A HMEDABAD; DATED 04 / 03 /2021 M ANISH