The DCIT, Central Circle-4, Surat V. Rivaa Textile Industries Pvt.Ltd., Surat

ITSSA 646/AHD/2011

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 1792 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 16-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-05-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 01-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: KETAN H SHAH
• Keywords: Bogus purchase; Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD, D BENCH BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ IT(SS)A.NO.646/AHD/2011 [ASSTT.YEAR 2006-2007] THE DCIT, CENT.CIR.4 SURAT. VS RIVAA TEXTILE INDUSTRIES P.LTD. RIVAA HOUSE, UDHNA DARWAJA RING ROAD, SURAT. PAN : AABCP 4351 M / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI SANJAY AGRAWAL, CIT - DR ASSESSEE BY : SHRI KETAN H. SHAH / DATE OF HEARING : 13/05/2016 / DATE OF PRONOUNCEMENT: 16/05/2016 !'#/ 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)-II, AHMEDABAD DATED 1.9.2011 PASSED IN THE ASSTT.YEAR 2006-07. 2. SOLITARY GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.20,23,654/- MADE BY THE AO ON ACCOUNT OF BOGUS PURCHASES. IT(SS)A NO.646/AHD/2011 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 1.12.2011. 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, LD. CIT(A) HAS DELETED ADDITION OF RS.20,23,8 00/-MADE BY THE AO ON ACCOUNT OF BOGUS PURCHASE, AND THEREFORE, TAX EF FECT ON THIS INCOME WOULD BE LESS THAN RS.10 LAKHS. THUS, THE PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING THE A PPEAL, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX E FFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INST RUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIM ITATION PRESCRIBED IT(SS)A NO.646/AHD/2011 3 UNDER THE LAW. IN VIEW OF THE 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 16 TH MAY, 2016 AT AHMEDABAD. SD/- SD/- ( N.K. BILLAIYA ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER