The DCIT, Central Circle-1, Baroda V. Shri Dwarkeshdas Punjabhai Patel, Baroda

ITSSA 72/AHD/2013

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 1842 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-04-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 04-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGDISH
• Assessee Lawyers: P M MEHTA; GM THAKOR
• Keywords: Business income; Retrospective amendment; Tax effect
• Section: 143(3); 153A

Judgement Text

IT (SS) A NO S . 71 , 72 & 326 / AHD/20 1 3 & C.O. NO.67/AHD/2013 A.YS. 2008 - 09, 2009 - 10 & 2010 - 11 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD BEFORE SHRI ANIL CHATURVEDI , ACCOUNTANT MEMBER AND SHRI S.S. GODARA , JUDICIAL MEMBER IT (SS) A NO S . 71 , 72 & 326/AHD /201 3 ASSESSMENT YEARS: 2008 - 09 , 2009 - 10 & 2010 - 11 D Y. COMMISSIONER OF INCOME TAX VS. SHRI DWARKADAS PUNJABHAI PATEL , CENTRAL CIRCLE - 1, BARODA. 1, DAYALBAUG SOCIETY, NEAR DEEP CHAMBERS, MANJALPUR, B ARODA 390 011. [PAN A CQPP 7191 M ] C.O. NO.67/AHD/2013 (IN IT(SS)A NO. 71 /AHD/201 3) ASSESSMENT YEAR: 200 8 - 09 SHRI DWARKADAS PUNJABHAI PATEL, VS. DY. COMMISSIONER OF INCOME TAX, 1, DAYALBAUG SOCIETY, CENTRAL CIRCLE - 1, BARODA. NEAR DEEP CHAMBERS, MANJALPUR, BARODA 390 011 . [PAN A CQPP 7191 M ] (APPELLANT S ) (RESPONDENT S ) REVENUE BY : SHRI JAGDISH , CIT (D . R. ) ASSESSEE BY : S HRI P.M. MEHTA & G.M. THAKOR, A.R. DATE OF HEARING : 26 .04 . 20 16 DATE OF PRONOUNCEMENT : 29 .04.2016 O R D E R PER S.S. GODARA , J.M. TH ESE REVENUE S APPEAL S FOR ASSESSMENT YEARS 2008 - 09, 2009 - 10 & 2010 - 11 AND ASSESSEE S C ROSS O BJECTION FOR A SSESSMENT Y EAR 20 08 - 09 , ARISE FROM A CONSOLIDATED ORDER OF THE CIT(A) - IV , AHMEDABAD DATED 1 9 TH NOVEMBER, 2012 PASSED IN CASE NO S .CIT(A) - IV/ 265B/CC - 1/11 - 12 , CIT(A) - IV/266B/CC - 1/11 - 12 & CIT(A) - IV/267B/CC - 1/11 - 12 IN PROCEEDINGS UNDER SECTION 153A R.W.S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . IT (SS) A NO S . 71 , 72 & 326 / AHD/20 1 3 & C.O. NO.67/AHD/2013 A.YS. 2008 - 09, 2009 - 10 & 2010 - 11 PAGE 2 OF 4 2. LEARNED AUTHORISED REPRESENTATIVE AT THE OUTSET FILES A CHART BEFORE US SUMMARISING THE RELEVANT ISSUES AS WELL AS THE TAX EFFECT INVOLVED THEREIN IN A LL OF THE THREE APPEALS. THE REVENUE IS FAIR ENOUGH IN NOT DISPUTING CORRECTNESS THEREOF. THE ABOVE STATED CHART DATED 27.01.2016 READS AS UNDER : - TAX EFFECT PARTICULAR RS. DISALLOWANCE OF SURPLUS INCOME GENERATED FROM SALE OF AGRICULTURE LAND DEALIN GS OFFERED AS CAPITAL GAIN TREATED IT AS BUSINESS INCOME 221 844 STATEMENT OF TAX TAX AS PER RETURN OF INCOME ON RS. 2,11,020 (A) 16204 TAX AFTER ADDITION ON RS.4,32,864 (B) 78859 TAX EFFECT ON ADDITION (B - A) 62 655 A.Y. 2009 - 10 IT(SS)A 72/A/13 TAX EFFECT PARTICULAR RS. DISALLOWANCE OF AGRICULTURE LAND DEALINGS OFFERED AS CAPITAL GAIN TREATED IT AS BUSINESS INCOME 607 702 STATEMENT OF TAX TAX AS PER RETURN OF INCOME ON RS.1,90,540 (A) 4,054 TAX AFTER ADDITION ON RS.7,98,242 (B) 144 473 TA X EFFECT ON ADDITION (B - A) 1 40419 A.Y. 2010 - 11 ITA326/A/13 TAX EFFEC T PARTICULAR R S . DISALLOWANCE OF AGRICULTURE LAND DEALINGS OFFERED AS CAPITAL GAIN TREATED IT AS BUSINESS INCOME 330102 STATEMENT OF TA X IT (SS) A NO S . 71 , 72 & 326 / AHD/20 1 3 & C.O. NO.67/AHD/2013 A.YS. 2008 - 09, 2009 - 10 & 2010 - 11 PAGE 3 OF 4 TAX AS PER RETURN OF INCOME ON RS . 2,61,95,380 (A) 7,762,614 TAX AFTER ADDITION ON RS. 2,65,25,482 (B) 7861 645 TAX EFFECT ON ADDITION (B - A) 99 031 3. A PERUSAL OF THE ABOVE STATED CHART MAKES IT CLEAR THAT THE NET TAX EFFECT INVOLVED IN ALL THESE APPEALS IS LESS THAN RS.10 LAC S. WE FIND THAT THE CENTRAL BOARD OF DIRECT TAXES; HEREAFTER THE BOARD HAS ISSUED THE CIRCULAR NO. 21/2015 DATED 10 . 12 . 2015 CLEARLY ENVISAGING THEREIN THAT DEPARTMENT S PENDING APPEALS BEFORE THE TRIBUNAL/HIGH COURTS ARE TO BE WITHDRAWN/NOT PRESSED AS P ER THE ABOVE STATED CIRCULAR. THE SAME HAS BEEN DECLARED TO BE HAVING RETROSPECTIVE EFFECT IN OTHER WORDS. WE TAKE INTO CONSIDERATION THE ABOVE STATED BOARD S CIRCULAR AND DISMISS THE INSTANT APPEAL ACCORDINGLY. 4. THE REVENUE S THREE APPEALS IT(SS)A NO .71/AHD/2013, 72/AHD/2013 & 326/AHD/2013 ARE DISMISSED. 5. THIS LEAVES US WITH ASSESSEE S CROSS OBJECTION NO.67/AHD/2013. LEARNED AUTHORISED REPRE SENTATIVE DOES NOT PRESS FOR THE SAME IN THE COURSE OF HEARING. THE SAME IS THEREFORE DISMISSED AS NOT PRE SSED. IT (SS) A NO S . 71 , 72 & 326 / AHD/20 1 3 & C.O. NO.67/AHD/2013 A.YS. 2008 - 09, 2009 - 10 & 2010 - 11 PAGE 4 OF 4 6. IN THE RESULT, REVENUE S APPEALS IT(SS)A NO.71/AHD/2013, 72/AHD/2013 & 326/AHD/2013 ARE DISMISSED AND ASSESSEE S CROSS OBJECTION NO.67/AHD/2013 IS DISMISSED AS NOT PRESSED. PRONOUNCED IN THE OPEN COURT TODAY ON TH E 29 TH DAY OF APRIL , 20 1 6 . SD/ - SD/ - ANIL CHATURVEDI S .S. GODARA (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, THE 29 TH DAY OF APRIL , 2016 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMI SSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD