The DCIT, Central Circle-1, RAJKOT-GUJARAT V. Shri Kunverji Naran Patel, Bhuj

ITSSA 23/RJT/2010

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3740 (ITAT-RAJKOT)
• Duration Of Justice: 8 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 04-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT SINGH
• Assessee Lawyers: MJ RANPURA
• Keywords: Unexplained investment; Retrospective amendment; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT [CONDUCTED THROUGH E COURT AT AHMEDABAD] BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ IT(SS)A.NO.23/RJT/2010 / ASSTT. YEAR: 2003-2004 DCIT, CENT.CIR.1 RAJKOT. VS SHRI KUNVERJI NARAN PATEL 82, JADAVJINAGAR COLLEGE ROAD BHUJ (GUJARAT). ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI RANJIT SINGH, CIT-DR ASSESSEE BY : SHRI M.J. RANPURA, AR / DATE OF HEARING : 17/01/2018 / DATE OF PRONOUNCEMENT: 09 /04/2018 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-IV AHMEDABAD DATED 9.11.2009 PASSED FOR THE ASSTT.YEAR 2003-04. 2. THE REVENUE IS AGGRIEVED BY ACTION OF THE LD.CIT (A) IN RESTRICTING ADDITION OF RS.10LAKHS TO THE EXTENT OF RS.94,000/- ON ACCOUNT OF UNEXPLAINED INVESTMENT IN PROPERTY. 3. AT THE OUTSET, LD.COUNSEL FOR THE ASSESSEE SUBMI TTED THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE, IN VIEW OF THE REC ENT CBDT INSTRUCTION NO.21/2015, WHEREIN THE CBDT HAS DIRECTED THE DEPAR TMENT NOT TO FILE APPEALS BEFORE THE TRIBUNAL, WHERE TAX EFFECT IS BELOW RS.1 0 LAKHS, AND THIS INSTRUCTION OF THE CBDT HAS RETROSPECTIVE EFFECT AN D APPLICABLE TO PENDING IT(SS)A NO.23/RJT/2010 2 CASES ALSO. THE LD.COUNSEL FOR THE ASSESSEE HAS SU BMITTED THAT UNDISPUTEDLY TAX EFFECT ON THE ADDITION RETAINED BY THE LD.CIT(A ) IS BELOW RS.10 LAKHS, AND THEREFORE, THE APPEAL OF THE REVENUE IN THE PRESENT FORM IS NOT MAINTAINABLE. THE LD.DR, ON THE OTHER HAND, DISPUTE CONTENTIONS O F THE ASSESSEE AND IMPLICATION OF F THE ABOVE CBDT CIRCULAR RESTRICTIN G FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL. HOWEVER, THE LD.DR LE FT TO THE TRIBUNAL TO DECIDE THE ISSUE IN ACCORDANCE WITH LAW. 4. WE FIND THAT THE REVENUE HAS FILED THE ABOVE APP EAL BEFORE THE TRIBUNAL ON 7.11.2014. AS PER THE LATEST CBDT CIRC ULAR NO.21/2015 DATED 10.12.2015, THE CBDT HAS RESTRICTED THE DEPARTMENT NOT TO FILE APPEAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS BEFORE THE TRIBUNAL . ADMITTEDLY, TAX EFFECT IN APPEAL OF THE REVENUE IS BELOW RS.10 LAKHS AND IS H IT BY THE ABOVE CBDT CIRCULAR. FURTHER, THE ABOVE CIRCULAR HAS RETROSPE CTIVE EFFECT, AND THEREFORE, APPEAL OF THE REVENUE PENDING AS ON THE DATE AND FA LLING WITHIN THE MONETARY LIMIT, ARE ALSO COVERED BY THE CIRCULAR, AND THEREF ORE, THE PRESENT APPEAL IS NOT MAINTAINABLE. IT IS, ACCORDINGLY, DISMISSED. 5. IT IS FURTHER OBSERVED THAT IF ON RE-VERIFICATIO N AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR I T FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DE PARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 9 TH APRIL, 2018 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 19/04/2018