ITO, BEAWAR V. KRISHI UPAJ MANDI SAMITI, Ajmer

MA 128/JPR/2016

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5434 (ITAT-JAIPUR)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 10-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PREM PRAKASH MEENA
• Keywords: Audit objection; Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YA DAV, AM M.A. NO.128/JP/16 (ARISING OUT OF ITA NO. 804/JP/2013) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2006-07 INCOME TAX OFFICER, WARD-2 BEAWAR CUKE VS. M/S KRISHI UPAJ MANDI SAMITI, KEKRI, AJMER LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAALK 0549 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPO NDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI PREM PRAKASH MEENA (JCIT) JKTLO DH VKSJ LS @ REVENUE BY : SHRI P.C. PARWAL (C.A) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 17/03/2017 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 24/03/2017 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY T HE DEPARTMENT REQUESTING FOR RECALL OF THE ORDER DATED 4.01.2016 FOR A.Y 2006-07 PASSED BY THE COORDINATE BENCH. 2. IN ITS PETITION, THE DEPARTMENT HAS SUBMITTED TH AT REVENUE AUDIT OBJECTION WAS RAISED AND ACCEPTED BY THE DEPARTMENT AND AFTER SEEKING APPROVAL FROM CIT(A), AJMER AND THE CASE WAS REOPEN ED AFTER VERIFICATION AND SATISFACTION OF THE AO WITH DUE AP PROVAL OF ADDITIONAL M.A. NO.136/JP/16 INCOME TAX OFFICER , WARD-2, . VS M/S KRISHI UPAJ MANDI SAMITI, KEKRI, AJMER 2 CIT, RANGE -2, AJMER. THE DEPARTMENT HAS FURTHER S UBMITTED THAT THE HONBLE ITAT HAS DISMISSED ITS APPEAL ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF CIRCULAR NO. 21/2015 DATED 10.12.2015 STAT ING THAT THE PRESENT APPEAL WAS NOT COVERED BY ANY EXCEPTION MENTIONED I N PARA 8(C) OF THE SAID CBDT CIRCULAR. 3. IN THIS REGARD, IT WAS ACCORDINGLY SUBMITTED BY THE DEPARTMENT THAT THIS MISCELLANEOUS APPLICATION MAY BE ACCEPTED AS ISSUE IS COVERED IN EXCEPTIONS LAID DOWN IN PARA 8(C) OF CIRCULAR NO . 12/2015 DATED 10.12.2015 BEING REVENUE AUDIT OBJECTION ACCEPTED B Y THE DEPARTMENT AND THE ORDER PASSED BY THE COORDINATE BENCH MAY KI NDLY BE RECALLED FOR HEARING AFRESH. 4. THE LD. AR DRAWN OUR REFERENCE TO SUBSEQUENT CBD T CIRCULAR NO. 5 OF 2017 DATED 23.01.2017 AND IN PARTICULAR, PARA 3 OF THE SAID CBDT WHICH READS AS UNDER:- SUBJECT: MEASURE FOR REDUCING LITIGATION- CLARIFIC ATION ON CIRCULARS 21/2015 AND 8/2016 REG. INSTRUCTIONS WERE ISSUED VIDE CBDT CIRCULAR NO.21/2 015 DATED 10.12.2015, TO THE EFFECT THAT APPEALS/SLPS SHOULD NOT BE FILED IN CASES WHERE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT S SPECIFIED UNDER PARA 3 OF THE SAID CIRCULAR. IT WAS ALSO CLARIFIED THEREIN THAT AN APPEAL M.A. NO.136/JP/16 INCOME TAX OFFICER , WARD-2, . VS M/S KRISHI UPAJ MANDI SAMITI, KEKRI, AJMER 3 SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT I N A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED IN THE SAID CIRCULAR. 2. IN PARA 8 OF THE AFORESAID CIRCULAR NO. 21/2015, IT HAS BEEN UNAMBIGUOUSLY AND EXPRESSLY PROVIDED THAT ADVERSE J UDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERI TS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONET ARY LIMITS SPECIFIED IN CIRCULAR OR EVEN IF THERE IS NO TAX EFFECT: A. WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISI ONS OF AN ACT OR RULE ARE UNDER CHALLENGE,OR B. WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION O R CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR C. WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BE EN ACCEPTED BY THE DEPARTMENT D. WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIG N ASSETS/BANK ACCOUNTS. 3. HOWEVER, IT HAS BEEN NOTICED THAT PARA 8 (C) OF CIRCULAR NO. 21/2015, REGARDING CASES WHERE ADDITION MADE ON ACC OUNT OF REVENUE AUDIT OBJECTION IS DELETED, IS BEING ERRONEOUSLY IN TERPRETED AND APPEALS ARE BEING MECHANICALLY FILED BY THE DEPARTMENT WITH OUT PROPER EXAMINATION OF THE CASE ON MERITS. THIS IS CONTRAR Y TO THE INSTRUCTIONS M.A. NO.136/JP/16 INCOME TAX OFFICER , WARD-2, . VS M/S KRISHI UPAJ MANDI SAMITI, KEKRI, AJMER 4 CONTAINED IN CIRCULAR NO. 21/2015 AND CIRCULAR NO. 8/2016. IT IS, THEREFORE, CLARIFIED THAT THE IMPORT AND INTENT OF PARA 8 OF THE CIRCULAR NO. 21/2015 IS THAT EVEN ON ISSUES MENTIONED IN THE SAID PARA, APPEALS AGAINST THE ADVERSE JUDGMENT SHOULD ONLY BE FILED O N MERITS. 4. ACCORDINGLY, HENCEFORTH, APPEALS SHOULD NOT BE F ILED BY THE DEPARTMENT IN VIOLATION OF INSTRUCTIONS MENTIONED A BOVE. FURTHER, APPEALS THAT MAY HAVE BEEN FILED IN VIOLATION OF TH ESE INSTRUCTIONS MAY BE WITHDRAWN. 5. THE ABOVE MAY BE BROUGHT TO THE NOTICE OF ALL CO NCERNED. 5. AFTER HEARING BOTH THE PARTIES, IT IS NOTED THAT THOUGH THE CASE HAS BEEN REOPENED BY THE DEPARTMENT ON THE BASIS RE VENUE AUDIT OBJECTION, ON PERUSAL OF RECORDS, WE FIND THAT NO C ASE HAS BEEN BUILT UP BY THE DEPARTMENT BEFORE THE COORDINATE BENCH IN TE RMS OF THE MERITS OF THE CASE. IN LIGHT OF THAT, WE DO NOT THINK THA T THERE IS ANY MERIT IN THE PRESENT MISC. APPLICATION FILED BY THE DEPARTME NT REQUESTING FOR RECALL OF THE ORDER PASSED BY THE COORDINATE BENCH DISMISSING THE APPEAL OF THE DEPARTMENT ON ACCOUNT OF LOW TAX EFFE CT. M.A. NO.136/JP/16 INCOME TAX OFFICER , WARD-2, . VS M/S KRISHI UPAJ MANDI SAMITI, KEKRI, AJMER 5 IN THE RESULT, MISCELLANEOUS APPLICATION FILED BY T HE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24/03/2017. SD/- SD/- DQY HKKJR FOE FLAG ;KNO (KUL BHARAT) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 24/03/2017. * GANESH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- INCOME TAX OFFICER, WARD-2 2. IZR;FKHZ@ THE RESPONDENT- M/S KRISHI UPAJ MANDI SAMITI, KEKRI , 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE {M.A. NO.128/JP/17} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR