ACIT, Circle 3(3), Ahmedabad V. Shri Jigen Bipinbhai Shah, Ahmedabad

MA 191/AHD/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9698 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-01-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 15-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DEELIPKUMAR
• Keywords: Additional evidence; Tax effect; Set aside

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER 1. MA NO.191/AHD/2019 AY 2014-15 ( IN ITA NO.2528/AHD/17 AY 2014-15 ) 2. ITA NO.2528/AHD/2017 ( ASSESSMENT YEAR: 2014-15 ) 1-2. THE ACIT CIRCLE-3(3) AHMEDABAD / VS. 1-2. SHRI JIGEN BIPINBHAI SHAH AMBICA RICE MILL COMPOUND SANAND CHAR RASTA SARKHEJ, AHMEDABAD ./ ./ PAN/GIR NO. : AFQPS 0424 M ( / APPLICANT ) .. ( / RESPONDENT ) / APPLICANT BY : SHRI DEELIP KUMAR, SR.DR / RESPONDENT BY : -NONE- / DATE OF HEARING 20/12/2019 !'# / DATE OF PRONOUNCEMENT 06/01/2020 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: MA NO.191/AHD/2019 FOR AY 2014-15 BY THIS MISCELLANEOUS APPLICATION, THE REVENUE HAS REQUESTED FOR RECALLING OF THE COMMON ORDER DATED 29/01/2019 PASS ED BY THE ITAT AHMEDABAD BENCH A IN ITA NO. 2528/AHD/2017 FOR AY 2014-15, DISMISSING APPEAL OF THE DEPARTMENT DUE TO TAX EFFE CT. MA NO.191/AHD/2019 & ITA NO.2528/AHD/2017 ACIT VS. JIGEN BIPINBHAI SHAH ASST .YEAR - 2014-15 - 2 - 2. REVENUE IN THE MA PLEADED THAT TAX EFFECT INVOLV ED IN THE APPEAL OF THE DEPARTMENT IS MORE THAN RS.20 LAKHS AND NOT HIT BY THE CBDT CIRCULAR NO. 03/2018, WHICH WAS RELIED BY THE TRIBU NAL WHILE DISMISSING THE ABOVE APPEAL OF THE REVENUE IN A SUMMARILY MANN ER. IT IS SUBMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS AGAI NST DELETION OF ADDITION OF RS.53,47,650/- BY THE CIT(A) ON ACCOUNT OF DISALLO WANCE U/S.40(A)(IA) OF THE ACT WITHOUT APPRECIATING THE FACT THAT THE A SSESSEE FAILED TO COMPLY WITH THE CONDITIONS UNDER SEC.194C(6) OF THE ACT. I N FACT, THE GROUND RAISED BY THE REVENUE IN ITS APPEAL IS THAT THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.53,47,650/- MADE ON ACC OUNT OF DISALLOWANCE U/S.40(A)(IA) OF THE ACT. IT IS THEREFORE PRAYED FO R RESTORATION OF REVENUES APPEAL WHICH WAS DISMISSED BY THE TRIBUNAL DUE TO L OW TAX EFFECT FOR THE ADJUDICATION OF THE SAME ON MERIT. 3. ON DUE CONSIDERATION OF FACTS AND RECORD, WE ARE OF THE VIEW THAT TAX CALCULATION SHOWN BY THE DEPARTMENT IN THE MA REQUI RES CONSIDERATION AT THE END OF THE TRIBUNAL, AND THEREFORE, WE ARE INCL INED TO RECALL THE IMPUGNED ORDER OF THE TRIBUNAL PASSED QUA ITA NO.2528/AHD/2017 FOR AY 2014-15. THUS, ORDER OF THE TRIBUNAL DATED 29/0 1/2019(SUPRA) IS HEREBY RECALLED AND REVENUES APPEAL RESTORED TO IT S ORIGINAL NUMBER FOR HEARING. 4. IN THE RESULT, MISC. APPLICATION OF THE REVENUE IS ALLOWED. MA NO.191/AHD/2019 & ITA NO.2528/AHD/2017 ACIT VS. JIGEN BIPINBHAI SHAH ASST .YEAR - 2014-15 - 3 - COMING TO THE REVENUES APPEAL IN ITA NO.2528/AHD/2 017 FOR AY 2014-15 5. THE CAPTIONED APPEAL HAS BEEN FILED AT THE INS TANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TA X (APPEALS)3, AHMEDABAD [CIT(A) IN SHORT] VIDE APPEAL NO.CIT(A)-3 /CIR.3(3)/566/16- 17 DATED 13/09/2017 RELEVANT TO ASSESSMENT YEAR ( AY) 2014-15. 6. REVENUES HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DE LETING THE ADDITION MADE BY AO OF RS.53,47,650/- ON ACCOUNT OF DISALLOWANCE U/S .40(A)(IA) WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE FAILED TO C OMPLY WITH THE CONDITIONS UNDER SEC.194C(6) OF THE ACT. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN ACC EPTING ADDITIONAL EVIDENCES FURNISHED BY THE ASSESSEE WITHOUT GIVING OPPORTUNIT Y TO THE AO UNDER RULE 46A AND THUS VIOLATED THE PROVISIONS OF RULES. 3. THE LD.CIT(A) HAS IGNORED THE FACT THAT THE ASSESSE E HIMSELF ADMITTED THAT DEFAULT OF NON REPORTING OF PAYMENTS TO TRANSPORTER HAS TAKEN PLACE ON HIS PART IN THE GROUND OF APPEAL FILED BY THE ASSESSEE. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME-TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER IN RESPECT OF ABOVE ISSUES. 5. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD.C OMMISSIONER OF INCOME-TAX(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 7. AT THE OUTSET, THE FORGOING ISSUES RAISED BY THE REVENUE ON MERIT, IT WAS NOTICED THAT THE LIMIT FOR FILING THE APPEAL BY THE REVENUE WAS ENHANCED BY THE CBDT IN ITS CIRCULAR BEARING NO.17 OF 2019 DATED 08/08/2019 FROM RS.20 LAKHS TO RS.50 LAKHS WHICH IS APPLICABLE ON THE PENDING APPEALS AS HELD BY THIS TRIBUNAL IN THE CAS E OF ITO V/S. DINESH MADHAVLAL PATEL IN ITA NO.1398/AHD/2004 FOR AY 1998 -99 VIDE ORDER MA NO.191/AHD/2019 & ITA NO.2528/AHD/2017 ACIT VS. JIGEN BIPINBHAI SHAH ASST .YEAR - 2014-15 - 4 - DATED 14/08/2019. THE RELEVANT EXTRACT OF THE CIRCU LAR IS REPRODUCED AS UNDER: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGA TION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY. THE T ABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL RE AD AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50,00,000 2 BEFORE HIGH COURT 1,00,00,000 3 BEFORE SUPREME COURT 2,00,00,000 8. FROM THE ABOVE CIRCULAR, THERE IS NO AMBIGUITY T HAT THE APPEAL FILED BY THE REVENUE INVOLVING TAX EFFECT OF RS.50 LAKHS IS NOT MAINTAINABLE. IN THE CASE ON HAND, THE TAX EFFECT IS LESS THAN RS .50,00,000/- ONLY. THEREFORE, THE IMPUGNED APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 9. BEFORE PARTING, WE ARE INCLINED TO MAKE IT CLEAR THAT REVENUE IS AT LIBERTY TO MOVE AN APPLICATION FOR RECALLING THE OR DER IF THE CASE OF THE REVENUE FALLS IN THE EXCEPTION AS PROVIDED IN THE C BDT CIRCULAR BEARING NO. 3 OF 2018. HENCE, WE DISMISS THE APPEAL FILE D BY THE REVENUE. MA NO.191/AHD/2019 & ITA NO.2528/AHD/2017 ACIT VS. JIGEN BIPINBHAI SHAH ASST .YEAR - 2014-15 - 5 - 10. IN THE RESULT, THE MISCELLANEOUS APPLICATION FI LED BY THE REVENUE IS ALLOWED; WHILE THE INCOME-TAX APPEAL FILED BY TH E REVENUE IS DISMISSED IN LIMINE . THIS ORDER PRONOUNCED IN OPEN COURT ON 06 /01/2020 SD/- SD/- ( RAJPAL YADAV ) ( WASEEM AHMED ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 06 /01/2020 &. ., .(. . / T.C. NAIR, SR. PS ! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPLICANT 2. / THE RESPONDENT. 3. ) *+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-3, AHMEDABAD 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION20.12.19 ( WORD PROCESSED BY HONBLE AM IN HIS COMPUTER BY DRA GON ) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..24.12.19 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.6.1.2020 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 6.1.2020 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER