The DCIT, Central Circle-1(3), Ahmedabad V. M/s. Bansal Shipping Pvt. Ltd., Bhavnagar

ITSSA 239/AHD/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3203 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 11-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-03-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 10-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASEEM L THAKKER
• Keywords: Tax effect
• Section: 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER IT(SS)A.NO/ ASSTT.YEAR APPELLANT RESPONDENT 232/AHD/2016 AY : 2012-13 DCIT, CENT.CIR.1(3) AHMEDABAD. SMT.GULSHAN KISHORECHAND BANSAL 52, VASANTKUNJ SOCIETY NEW SHARDA MANDIR ROAD AHMEDABAD. PAN : AARPB 6363 L 236/AHD/2016 AY : 2012-13 DCIT, CENT.CIR.1(3) AHMEDABAD. SHRI KISHORECHAND KAKARAM BANSAL 52, VASANTKUNJ SOCIETY NEW SHARDA MANDIR ROAD AHMEDABAD. PAN : AFKPB 7749 A 237/AHD/2016 AY : 2012-13 DCIT, CENT.CIR.1(3) AHMEDABAD. SHRI MAULIK KISHORECHAND BANSAL 52, VASANTKUNJ SOCIETY NEW SHARDA MANDIR ROAD AHMEDABAD. PAN : AFHPB 2678 H 239/AHD/2016 AY : 2012-13 DCIT, CENT.CIR.1(3) AHMEDABAD. SHRI SHIPPING P. LTD. BANSAL PLOT NO.2137, NR.GOLDEN ARC COMPLEX ATTABHAI CHOWK, BHAVNAGAR. PAN : AABCB 1597 R REVENUE BY : SHRI DILIPKUMAR, SR.DR ASSESSEE BY : SHRI ASEEM L. THAKKER, AR / DATE OF HEARING : 11/03/2020 ! / DATE OF PRONOUNCEMENT: 11/03/2020 / O R D E R PER RAJPAL YADAV, VICE-PRESIDENT THIS BUNCH OF FOUR APPEALS IS DIRECTED AT THE INSTA NCE OF THE REVENUE AGAINST DIFFERENT ASSESSEES CHALLENGING ORDERS OF T HE LD.CIT(A)-13, AHMEDABAD OF EVEN DATED 6.5.2016 PASSED FOR THE ASS TT.YEAR 2012-13. IT(SS)A NO.232 /AHD/2016 AND OTHERS 2 2. IN ALL THESE APPEALS, COMMON GRIEVANCE OF THE RE VENUE IS THAT THE LD.CIT(A) HAS ERRED IN DELETING PENALTY UNDER SECTI ON 271AAA OF THE INCOME TAX ACT, 1961 IMPOSED BY THE AO IN RESPECTIV E CASES OF THE ASSESSEES. QUANTUM OF PENALTY IMPOSED BY THE AO AN D CANCELLED BY THE LD.CIT(A) IN RESPECTIVE CASES ARE AS UNDER: NAME OF ASSESSEE QUANTUM OF PENALTY I) SMT.GULSHAN KISHORECHAND BANSAL RS.30,00,000/- II) SHRI KISHORECHAND KAKARAM BANSAL RS.30,00,000/- III) SHRI MAULIK KOSHRECHAND BANSAL RS.15,00,000/- IV) M/S.BANSAL SHIPPING P.LTD. RS.25,70,000/- 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE OUTSET SU BMITTED THAT QUANTUM OF PENALTY IN EACH CASE IS LESS THAN RS.50. 00 LAKHS, WHICH HAS BEEN DELETED BY THE LD.CIT(A). HE SUBMITTED THAT B Y VIRTUE OF RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTM ENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBUNAL W HERE TAX EFFECT OR QUANTUM OF PENALTY IS BELOW RS.50 LAKHS. THIS INST RUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. PER C ONTRA, THE LD.DR DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCULAR A ND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT QUANTUM OF PENALTY IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBD T CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, W E 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 CAN BE DEMONSTRATED THAT THE TAX EFFECT A ND/OR QUANTUM OF PENALTY IS MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD IT(SS)A NO.232 /AHD/2016 AND OTHERS 3 BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE A CT. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 11 TH MARCH, 2020 AT AHMEDABAD. S D / - (WASEEM AHMED) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT