The ITO, Ward-8(3), Ahmedabad V. Shree Kanhai Realty Pvt. Ltd., Ahmedabad

ITSSA 86/AHD/2014

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3204 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 1 month(s) 5 day(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: 2009-2010
• Appeal Filed On: 05-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGADISH
• Keywords: Unexplained investment; 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.86/AHD/2014 / ASSTT.YEAR : 2009-10 ITO, WARD - 8(3) AHMEDABAD. VS. SHREE KANHAI REALITY P.LTD. ABOVE AUDIT SHOW ROOM NR. RAJPATH CLUB, S.G.HIGHWAY AHMEDABAD. ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI JAGADISH, CIT-DR ASSESSEE BY : SHRI TUSHAR P. HEMANI, WITH SHRI PARIMAL B. PARMAR, AR / DATE OF HEARING : 11/03/2020 ! / DATE OF PRONOUNCEMENT: 11/03/2020 / O R D E R PER RAJPAL YADAV, VICE-PRESIDENT THIS IS REVENUES DIRECTED AGAINST ORDER OF THE LD. CIT(A)-I, DATED 28.11.2013 PASSED FOR THE ASSTT.YEAR 2009-10. 2. IN THIS APPEAL, THE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.67,16,810/ - ON ACCOUNT OF UNACCOUNTED INVESTMENT. 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE OUTSET SU BMITTED THAT DISPUTED ADDITION IS RS.67,16,810/- ON WHICH TAX EF FECT WOULD BE LESS THAN RS.50 LAKHS. HE SUBMITTED THAT BY VIRTUE OF R ECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN I NSTRUCTED NOT TO FILE IT(SS)A NO.86/AHD/2014 2 APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELO W RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO . THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMI SSED AT THE THRESHOLD. PER CONTRA, THE LD.DR DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCULAR AND LEFT TO THE TRIBUNAL TO PASS APPROPRIA TE 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 TAX EFFECTIVE ON THE D ISPUTED ADDITION IS LESS THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VI EW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCO ME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS 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 O N THE DISPUTED ADDITION IS MORE, OR REVENUES CASE FALLS WITHIN TH E 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 BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE A CT. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE T O LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 11 TH MARCH, 2020 AT AHMEDABAD. SD/ - (WASEEM AHMED) ACCOUNTANT MEMBER SD/ - (RAJPAL YADAV) VICE-PRESIDENT AHMEDABAD; DATED 11/03/2020