The ACIT, Central Circle-2(4), Ahmedabad V. M/s. Dwarkesh Restaurant Pvt. Ltd., Ahmedabad

ITSSA 52/AHD/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4129 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 23-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SHARMA
• Keywords: Tax effect
• Section: 147; 143(3); 153A

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER IT(SS)A. NO. 52/AHD/2015 CROSS OBJECTION NO. 78/AHD/2017 ( ASSESSMENT YEAR : 2009-10) THE ACIT, CENTRAL CIRCLE-2(4) , 3 RD FLOOR, AAYKAR BHAVAN, ASHRAM ROAD, AHMEDABAD. / VS. M/S DWARKESH RESTAURANT PVT. LTD., F/1, SAHJANAND COMPLEX, OFF. C.G. ROAD, NAVRANGPURA, AHMEDABAD. / / PAN/GIR NO. : AABCD3927B ( APPELLANT / RESPONDENT ) .. ( RESPONDEN T /CROSS OBJECTOR ) / APPELLANT BY : O.P. SHARMA, SR. DR / RESPONDENT BY : IRA KAPOOR, AR DATE OF HEARING 14/02/2019 !'# / DATE OF PRONOUNCEMENT 15/02/2019 / O R D E R PER PRADIP KUMAR KEDIA- AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-12, AHMEDABAD (CIT(A) IN SHORT), DATED 24.12.2014 ARISING IN THE ASSESSMENT ORDER DATED 31.03.2013 PA SSED BY THE ASSESSING OFFICER (AO) UNDER S. 153C R.W.S. 153A R. W.S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) IN THE ASSESSMEN T YEAR 2009-10. IT(SS)A NO.52/AHD/15 [ACIT VS. M/S DWARKESH RESTAURANT] A.Y. 2009-10 - 2 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READ S AS UNDER:- 1. ON THE FACT AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF CESSATION OF LIABILITY OF RS. 61,50,470/- U/S 41(1) OF THE ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE A.O. TO THE A BOVE EXTENT. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISIN G THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAK HS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 6. THE ASSESSEE HAS FILED CROSS OBJECTION IN THE RE VENUE APPEAL CHALLENGING THE JURISDICTION OF THE AO TO REOPEN AS SESSMENT UNDER SECTION 147 OF THE ACT. HOWEVER, THE LD. AR FOR THE ASSESSEE AT THE IT(SS)A NO.52/AHD/15 [ACIT VS. M/S DWARKESH RESTAURANT] A.Y. 2009-10 - 3 TIME OF HEARING MADE A STATEMENT AT THE BAR THAT TH E CROSS OBJECTION RAISED ON BEHALF OF THE ASSESSEE IS NOT PRESSED. T HE CROSS OBJECTION IS ACCORDINGLY DISMISSED AND NOT PRESSED. 7. IN THE COMBINED RESULT, THE APPEAL OF THE REVENU E IS DISMISSED, WHERE AS ASSESSEES CROSS OBJECTION IS DISMISSED AN D NOT PRESSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 15/02/2019 TANMAY !'#' / COPY OF ORDER FORWARDED TO:- & / REVENUE 2 / ASSESSEE ( ) *+ , / CONCERNED CIT 4 ,- / CIT (A) / 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7 289 : / GUARD FILE. BY ORDER / 4 / 5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 15/02/2 019