Income Tax Officer, Ward-2, , Morbi V. Hussain Gulamabbas Lokhandwala, Morbi

MA 26/RJT/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4791 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-04-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 28-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, राजकोट 瀈यायपीठ 瀈यायपीठ瀈यायपीठ 瀈यायपीठ, , , , राजकोट IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND T.R. SENTHIL KUMAR, JUDICIAL MEMBER M.A. NO.26/RJT/2019 WITH ITA No.371/RJT/2017 Assessment Year :2008-09 ITO, Ward-2 Morbi. Vs Hussain G. Lokhandwala PAN : AARPL 9557 C Daudi Plot, Sheri No.1 Nr.Rashtriya Shala, Morbi. (Applicant) (Responent) Assessee by : None Revenue by : Shri S.S. Rathi, Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 0 1 / 0 4 / 2 0 2 2 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 0 8 / 0 4 / 2 0 2 2 आदेश/O R D E R PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER Present Misc. Application is filed at the instance of the Revenue pointing out apparent error qua the present assessee in ITA No.371/RJT/2017 which included in a consolidated order of Tribunal dated 30.7.2018 in a bunch of cases disposed of vide ITA No.396/RJT/2015 and 181 others. 2. Before hearing the MA, the ld.DR pointed out that the Revenue has also filed appeal in ITA No.372/Ahd/2017 against the order of the ld.CIT(A)-3, Rajkot in Appeal No.CIT(A)-3/A3/0143/16-17 dated MA No.26/RJT/2019 with ITA 2 10.6.2016 vide which the ld.CIT(A) has deleted penalty under section 271(1)(c) of the Act. 3. In the MA, it is pleaded by the Revenue in the application that in the impugned common order, the appeal of the Revenue being ITA No.371/Rjt/2017 was dismissed on the ground that tax effect by virtue of relief given by the ld.CIT(A) was less than the monetary limit prescribed by the CBDT Instruction no.03/2018 dated 11.7.2018 i.e. Rs.20 lakhs, hence, the appeal of the Revenue is not maintainable. However, the tax effect involved on the issues appealed was more than Rs.20 lakhs, and hence, this mistake requires to be rectified and the appeal of the Revenue may be recalled and decided on merit. 4. After going through the pleadings of the Revenue in the MA, we find that the ITAT in special drive to dispose of cases where tax effect in the appeals filed by the Revenue is below Rs.20 lakhs as per CBDT circular no.3 of 2018 dated 11.7.2018, the Tribunal had disposed of as many as 181 appeals vide order dated 30.7.2018 impugned by the Revenue. In this bunch of appeals also included the present appeal, though tax effect involved therein is Rs.27,72,337/- as worked out by the Revenue and also stated in the present MA. This is due to oversight mistake and requires rectification. Therefore, we recall the impugned order dated 30.7.2018 qua IT No.371/RJT/2017 and proceed to dispose of the same along with appeal of the Revenue being ITA No.372/RJT/2017 for the Asstt.Year 2008-09 with the consent of both the parties. ITA No.371/RJT/2010 Asstt.Year 2008-09 5. The ld.counsel for the assessee has filed a written submission dated 3.8.2019, wherein it is pleaded that admittedly the tax effect MA No.26/RJT/2019 with ITA 3 in the appeal of the Revenue is around Rs.27,72,337/-, and therefore, the appeal of the Revenue is otherwise also hit by later CBDT Instruction No.17 of 2019 dated 8.8.2019, by which the CBDT has revised monetary limit to Rs.50 lakhs and prohibited the Revenue from filing appeal in the Tribunal where tax effect is below Rs.50 lakhs. Accordingly, the appeal of the Revenue is liable to be dismissed in limine. The ld.DR has not disputed this factual position. 6. On due consideration of the facts and circumstances, we find that the CBDT is issuing instruction from time to time by revising threshold monetary limit for filing appeal before the Tribunal by the Department. Now monetary limit for filing appeal by the Department before the Tribunal, has been raised to Rs.50 lakhs, as against Rs.20 lakhs when the appeal of the Revenue was dismissed. This instruction No.17 of 2019 of the CBDT is applicable to the pending cases also. Admittedly in the present appeal, tax effect is Rs.27,72,337/- much below Rs.50 lakhs. Thus, even though the appeal of the Revenue is restored to its original number, it has to be again dismissed by applying the new CBDT Instruction No.17 of 2019 which revised the monetary limit to Rs.50 lakhs for filing appeal before the Tribunal. Therefore, appeal of the Revenue stands dismissed. 7. In the result, Revenue’s Misc. Application is allowed; however, appeal is dismissed due to revised low tax effect. Order pronounced in the Court on 8 th April, 2022 at Ahmedabad. Sd/- Sd/- (ANNAPURNA GUPTA) ACCOUNTANT MEMBER (T.R. SENTHIL KUMAR) JUDICIAL MEMBER Ahmedabad, dated 08/04/2022 MA No.26/RJT/2019 with ITA 4 vk* आदेश क त ल"प अ%े"षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु !त / Concerned CIT 4. आयकर आय ु !त(अपील) / The CIT(A) 5. $वभागीय 'त'न ध, आयकर अपील य अ धकरण / DR, ITAT, 6. गाड* फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील/य अ0धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation- 01-4-2022 2. Date on which the typed draft is placed before the Dictating Member 3. Date on which the approved draft comes to the Sr.P.S./P.S. - 4. Date on which the fair order is placed before the Dictating Member for Pronouncement .................... 5. Date on which the file goes to the Bench Clerk .. 8-4-2022 6. Date on which the file goes to the Head Clerk.................................. 7. The date on which the file goes to the Assistant Registrar for signature on the order.......................... Date of Despatch of the Order..................