The Assistant Commr. of Income Tax, (Circle), GANDHIDHAM V. Shri Kirtikumar C. Thacker, GANDHIDHAM

ITSSA 21/RJT/2013

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2089 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 06-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 19-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH PANDEY
• Assessee Lawyers: MJ RANPURA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH : E COURT, AT AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ IT(SS)A.NO.21/RJT/2013 [ASSTT.YEAR 2009-2010] ACIT (CIRCLE) GANDHIDHAM-KUTCH. VS SHRI KIRITKUMAR C. THACKER PLOT NO.330, SECTOR-1-A GANDHIDHAM. / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI YOGESH PANDEY, CIT - DR ASSESSEE BY : SHRI M.J. RANPURA, CA / DATE OF HEARING : 03/05/2016 / DATE OF PRONOUNCEMENT: 06/05/2016 !'#/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF T HE REVENUE AGAINST ORDER OF THE LD.CIT(A)-IV, AHMEDABAD DATED 18.7.2013 PASSED IN THE ASSTT.YEAR 2009-10. 2. SOLITARY GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) HAS ERRED IN DELETING THE PENALTY UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT. IT(SS)A NO.21/RJT/2013 2 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE S UBMITTED THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LAKHS, AND THE REFORE, APPEAL FILED BY THE REVENUE IS NOT ADMISSIBLE, IN VIEW OF CBDT CIRC ULAR NO.21/2015 DATED 10.12.2015. BY VIRTUE OF THIS INSTRUCTION, T HE BOARD HAS RESTRAINED THE DEPARTMENT NOT TO FILE APPEAL BEFORE THE TRIBUN AL WHERE THE TAX EFFECT IS BELOW RS.10 LAKHS, AND THEREFORE, APPEAL OF THE REVENUE LIABLE TO BE DISMISSED IN LIMINE . THE LD.DR COULD NOT CONTROVERT TO THIS SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE. 4. WE FIND THAT THE REVENUE HAS FILED THIS APPEAL ON 19.09.2013. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 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.10 L AKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT , MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEAL S ALSO. IN THE PRESENT CASE, ASSESSED INCOME COMPUTED BY THE AO IS RS.22,2 2,960/- ON WHICH THE IMPUGNED PENALTY HAS BEEN IMPOSED. AND THE, TAX EFFECT ON THIS INCOME WOULD BE LESS THAN RS.10 LAKHS. THUS, THE P RESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, W HILE HEARING THE APPEAL, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE , IN CASE, ON RE- VERIFICATION AT THE END OF THE AO, IT CAME TO THE N OTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATIO N SHOULD BE FILED WITHIN IT(SS)A NO.21/RJT/2013 3 LIMITATION PRESCRIBED UNDER THE LAW. IN VIEW OF TH E ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 6 TH MAY, 2016 AT AHMEDABAD. SD/- SD/- ( N.K. BILLAIYA ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 06/05/2016