The ACIT, Circle-5(2), Ahmedabad V. Shri Gokaldas Popatbhai Patel, Ahmedabad

MA 173/AHD/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4884 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-11-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 18-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 19-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI S. S. GODARA, JM AND SHRI MANISH BORA D, A.M. M.A. NO.173/AHD/2016 IN ITA NO.848/AHD/2015 ASST. YEAR: 2011-12 ACIT, CIRCLE-5(2), AHMEDABAD. VS. SHRI GOKALDAS POPATBHAI PATEL, AHMEDABAD. APPELLANT RESPONDENT PAN ACKPP 9436H APPELLANT BY SHRI SANJAY R. SHAH, AR RESPONDENT BY SHRI PRASOON KABRA, SR.DR DATE OF HEARING: 18/11/2016 DATE OF PRONOUNCEMENT: 21/11/2016 O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER . THIS MISCELLANEOUS APPLICATION IS DIRECTED AT THE INSTANCE OF REVENUE STATING AS UNDER :- THE HON'BLE ITAT HAS PASSED ORDER DATED 16.12.2015, WHICH WAS RECEIVED BY THE O/O. CIT AHMEDABAD-4, AHMEDABAD ON 26.05.2016. THE HON'BLE ITAT HAS PASSED THE SAID ORDER BY CONSIDERING THE DIRECTIONS REGARDING MONETARY LIMITS GIVEN IN CIRCULAR NO. 21/2015 DATED 10.12.2015 AND DISMISSED THE APPEAL OF REVENUE. IN IT'S ORDER IT OBSERVED AS UNDER:- 'ALL THESE APPEALS ARE DEPARTMENTAL APPEALS, FILED BY THE A.OS UNDER THE INCOME TAX ACT, 1961, ALL THESE APPEALS CALL INTO QUESTION COR RECTNESS OF THE RELIEF GRANTED TO THE TAX PAYERS BY THE COMMISSIONERS (APPEALS) AND, MOST IMPORTANTLY THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS. 1 0 LACS IN EACH OF THESE APPEALS. IN THE LEAD CASE, THE ISSUE INVOLVED IS WHETHER OR NOT THE LD. CIT (A) WAS JUSTIFIED IN DELETING VIDE HIS ORDER DATED 20.11.2013 AND FOR TH E A.Y. 1994-95, THE PENALTY OF RS. 743.060/- IMPOSED ON THE ASSESSEE U/S. 271(L)(C) OF THE ACT. IN THESE CASES, IN THE LIGHT MA NO.173/AHD/2016 IN ITA NO.848/AHD/2015 ASST. YEAR 2011-12 2 OF THE DISCUSSIONS WITH THE PR. CHIEF COMMISSIONER OF INCOME TAX (GUJARAT) AND REPRESENTATIVES OF THE AHMEDABAD ITAT BAR ASSOCIATI ON, INDIVIDUAL NOTICES ARE DISPENSED WITH NOTICES ONLY THROUGH THE NOTICE BOAR D'. IT IS PERTINENT TO MENTION HERE THAT AMONGST THIRTY THREE PARTIES ONE OF THE PARTY IS ASSESSED IN THIS CIRCLE I.E. SHRI GOKALDAS POPATBHA I PATEL - PAN ACKPP9436H - FOR A.Y. 2011-12. 2 THIS APPEAL IS DIRECTED AGAINST THE ASSESSMENT O RDER PASSED UNDER SECTION U/S. 143(3) OF THE IT. ACT DATED 07.03.2014 BY THE DCIT, CIRCLE-9, AHMEDABAD AGAINST INCOME RETURNED OF RS. 63,87,588/- FOR AY 2011-12 A SSESSMENT WAS COMPLETED U/S. 143(3) AT RS. 1,06,87,669/- RESULTING IN ADDITION O F RS. 43,00,081/-.. THE ASSESSING OFFICER MADE AN ADDITION U/S. 41(1) OF THE ACT ON A CCOUNT OF OUTSTANDING LIABILITIES. 3. AGGRIEVED BY THE SAID ASSESSMENT ORDER, THE ASS ESSEE FILED AN APPEAL BEFORE THE LD. CIT(A). THE CIT(A) VIDE HIS ORDER DATED 27.01.2015 HELD THAT MERELY ON INQUIRIES THROUGH LETTERS THE LIABILITIES FOUND UNVERIFIABLE WOULD NOT BE ENOUGH FOR INVOKING THE PROVISIONS OF SECTION 41(1) OF THE ACT EVEN THOUGH THOSE MIGHT BE THE BOGUS LIABILITIES FOR WHICH THE NECESSARY ACTION BY WAY OF DISALLOWAN CE OF EXPENDITURES CLAIMED IN THE RELEVANT PREVIOUS YEARS HAS TO BE MADE IN THE RELEV ANT YEARS AND NO ADVERSE VIEW CAN BE TAKEN FOR THE SAME IN THE YEAR UNDER CONSIDERATI ONS. SINCE IN THE YEAR UNDER CONSIDERATION NO CLAIM OF EXPENDITURES HAVE BEEN MA DE BY THE APPELLANT IN ITS BOOKS OF ACCOUNTS, ITS INCOME HAS NOT BEEN ADVERSELY AFFE CTED FROM THE SAME. THUS ON THIS GROUND ALSO NO DISALLOWANCE IS CALLED FOR AND DELET ED THE ADDITION MADE BY THE AO. 4. AGAINST THE ORDER OF THE LD.CIT(A), THE DEPARTM ENT PREFERRED AN APPEAL BEFORE THE HON'BLE ITAT. THE HON'BLE ITAT VIDE IT'S ORDER NO. 1753/AHD/2015 DATED 16.12.2015 DISMISSED THE APPEAL OF THE DEPART MENT QUOTING THAT AS PER CBDT'S CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 THE MONETARY LIMIT FOR FILING AN APPEAL BEFORE ITAT HAS BEEN ENHANCED TO R S. 10,00,000/-. ON VERIFICATION OF THE RECORDS, IT REVEALS THAT IN THI S CASE THE TAX EFFECT INVOLVED IS OF RS. 13,28,725/- WHICH IS MORE THAN THE MONETARY LIMITS OF RS.10 LAC S. HENCE, IT IS RESPECTFULLY SUBMITTED THAT THE HON'HLE ITAT HAS WR ONGLY DISMISSED THE APPEAL OF THE DEPARTMENT. PRAYER OF THE DEPARTMENT:- IT IS THEREFORE, HUMBLY PRAYED THAT:- THE HON'BLE ITAT MAY RECALL THE ORDER PASSED ON 16. 12.2015 AND DECIDE THE CASE ON MERITS ON THE BASIS OF FACTS MENTIONED HERE-IN-ABOV E AND AMEND THE ORDER ACCORDINGLY. MA NO.173/AHD/2016 IN ITA NO.848/AHD/2015 ASST. YEAR 2011-12 3 2. WE HAVE HEARD THE LD. REPRESENTATIVES AND GONE T HROUGH THE RECORD. WE OBSERVE THAT VIDE COMMON ORDER GROUP OF DEPARTMENTAL APPEALS WERE DISMISSED DUE TO LOW TAX EFFECT WHEREI N THIS MATTER WAS ALSO INCLUDED DUE TO OVERSIGHT, WHICH IS NOT WITHIN THE BELOW TAX LIMIT OF RS.10,00,000/- AND IS NOT COVERED BY THE CBDT CI RCULAR NO.21/2015 DATED 10.12.2015. THIS IS AN APPARENT M ISTAKE. THEREFORE, WE RECALL THE APPEAL FOR FRESH ADJUDICAT ION. THE REGISTRY IS DIRECTED TO FIX THE HEARING OF THE APPEAL IN DUE CO URSE OF TIME AFTER ISSUING THE NOTICE OF HEARING TO BOTH THE PARTIES. 3. IN THE RESULT, MISCELLANEOUS APPLICATION IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST NOVEMBER, 2016 SD/- SD/- (S. S. GODARA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED 21/11/2016 MAHATA/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, AHMEDABAD MA NO.173/AHD/2016 IN ITA NO.848/AHD/2015 ASST. YEAR 2011-12 4 1. DATE OF DICTATION: 18/11/2016 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 21/11/2016 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: 21/11/2016 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: