Income tax( Exemption)Ward, Surat V. The Surat Islam Yatimkhana Society, Surat

MA 06/SRT/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 7192 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 11 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 25-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM MA NO.6/SRT/2019 [ARISING OUT OF ITA NO.232/SRT/2017] ASSESSMENT YEAR: (2008-09) (VIRTUAL COURT HEARING) INCOME TAX OFFICER, (EXEMPTION), WARD, SURAT. VS. THE SURAT ISLAM YATIMKHANA SOCIETY, NEAR T & T V SARVAJANIK HIGH SCHOOL, NANPURA, SURAT-395 001. ./ ./ PAN/GIR NO.: AAETS5471M (REVENUE) (ASSESSEE) REVENUE BY : MS ANUPAMA SINGLA SR. DR ASSESSEE BY : SHRI HIREN VEPARI - AR / DATE OF HEARING : 11/12/2020 /DATE OF PRONOUNCEMENT : 07/01/2021 / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: BY WAY OF CAPTIONED APPLICATION, THE REVENUE HAS SOUGHT TO POINT OUT THAT A MISTAKE APPARENT FROM RECORD WITHIN THE MEANING OF SECTION 254(2) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) HAS CREPT IN THE ORDER OF THE TRIBUNAL DATED 30.05.2016. 2. THE CONTENTION OF LEARNED DEPARTMENTAL REPRESENTATIVE (DR) FOR THE REVENUE IN THIS MISCELLANEOUS APPLICATION IS THAT NOTIONAL TAX EFFECT IN THE REVENUES APPEAL COMES TO RS.64,17,405/- WHICH IS MORE THAN THE MONETARY LIMIT PRESCRIBED IN THE LATEST CIRCULAR OF CBDT. THE TRIBUNAL HAS DISMISSED THE APPEAL OF THE ASSESSEE ON ACCOUNT OF LOW TAX EFFECT WITHOUT CONSIDERING THE NOTIONAL TAX EFFECT, THEREFORE ORDER OF THE TRIBUNAL DATED 30.05.216 MAY BE RECALLED. 3. ON THE OTHER HAND, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THERE IS NO MISTAKE APPARENT IN THE ORDER OF THE TRIBUNAL AND TRIBUNAL AFTER CONSIDERING THE ENTIRE FACTS HAVE COME TO THE CONCLUSION THAT THE TAX EFFECT IS BELOW THE LIMIT PRESCRIBED BY THE CBDT CIRCULAR NO.3/2018 DATED 17.08.2018. THE LEARNED PAGE | 2 MA NO. 6/SRT/2019 ASSESSMENT YEAR.2008-09 SURAT ISLAM YATIMKHANA SOCEITY COUNSEL SUBMITTED BEFORE THE BENCH, THE TAX EFFECT CALCULATION, WHICH IS REPRODUCED BELOW: SUSTAINED ADDITIONS AGAINST WHICH DEPARTMENT HAS BEEN IN APPEAL PER THE ADDITION CONTESTED (RS.) UNEXPLAINED DIVIDEND 9,78,582 UNEXPLAINED DIVIDEND FROM UTI 1,08,881 TOTAL 10,87,463 TAX @ 30.9% 3,36,026 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT THERE IS NO CONCEPT OF NOTIONAL TAX EFFECT IN THE LATEST CIRCULAR OF CBDT, VIDE CIRCULAR NO.17 OF 2019. THE REVENUE HAS COMPUTED THE NOTIONAL TAX EFFECT TAKING INTO ACCOUNT THE CARRY FORWARD OF EXCESS APPLICATION / EXPENDITURE OF RS.2,03,03,887/-. THE LEARNED COUNSEL SUBMITTED BEFORE US TAX EFFECT CALCULATION AT RS.3,36,026/- WHICH IS BELOW THE MONETARY LIMIT PRESCRIBED BY THE CBDT CIRCULAR NO. 17/2019, HENCE WE DISMISS THE MISCELLANEOUS APPLICATION OF REVENUE. 5. IN THE RESULT, MISCELLANEOUS APPLICATION [IN MA NO.6/SRT/2017 FOR AY.2008-09] FILED BY THE REVENUE IS DISMISSED. ORDER IS PRONOUNCED ON 07/01/2021, AS PER RULE 34 OF INCOME TAX APPELLATE TRIBUNAL, RULE 1963. SD/- SD/- (PAWAN SINGH) (DR. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER LWJR /SURAT / DATE: 07/01/2021 SAMANTA, PS COPY OF THE ORDER FORWARDED TO 1. THE ASSESSEE 2. THE RESPONDENT 3. THE CIT(A) 4. PR.CIT 5. DR/AR, ITAT, SURAT 6. GUARD FILE BY ORDER // TRUE COPY // ASSISTANT REGISTRAR/SR. PS/PS ITAT, SURAT