The Dy.Commissioner of Income Tax, Gandhidham Circle , Gandhidham-Kutch V. Kandla Export Corporation, Gandhidham-Kutch

MA 29/RJT/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0250 (ITAT-RAJKOT)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 08-04-2019
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE SHRI RAJPAL YADAV, HONBLE JUDICIAL MEMBER AND SHRI WASEEM AHMED HONBLE ACCOUNTANT MEMBER MISC. APPLICATION NO.29/RJT/2019 WITH IT(SS)A NO.131/RJT/2016 / ASSTT. YEAR: 2007-2008 DCIT, GANDHIDHAM CIRCLE GANDHIDHAM. VS. M/S.KANDLA EXPORT CORPORATION PLOT NO.08,MAITRI BHAWAN SECTOR 08 GANDHIDHAM-KUTCH. ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI ANIL KUMAR DAS, DR ASSESSEE BY : WS / DATE OF HEARING : 20/09/2019 / DATE OF PRONOUNCEMENT: 24/09/2019 )*+/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: DEPARTMENT HAS FILED THE PRESENT MISC. APPLICATION CONTENDING THEREIN THAT IN VIEW OF CBDT CIRCULAR NO.3 OF 2018, WHILE C ALCULATING THE TAX EFFECT QUA COMMON ORDER PASSED BY THE LD.CIT(A) THEN TAX E FFECT INVOLVED IN ALL THE YEARS ARE TO BE TAKEN UP TOGETHER. A REFERENCE TO PARAGRAPH-5 OF THE INSTRUCTION NO.3 OF 2018 WAS MADE. IT IS SUBMITTED THAT TAX EFFECT CUMULATIVE FOR THE ASSTT.YEAR 2006-09 TO 2008-09 IS MORE THAN RS.20 LAKHS, AND THEREFORE, APPEAL OF THE ASSESSEE FOR ASSTT.YEAR 20 07-08 OUGHT TO HAVE NOT DISMISSED ON ACCOUNT OF LOW TAX EFFECT. CONSIDERIN G THE ABOVE ASPECT, WE RESTORE THE APPEAL TO ITS ORIGINAL NUMBER. MA IS ALLOWED. 2. WITH THE CONSENT OF THE LD.DR, WHEN WE TOOK UP T HE APPEAL FOR HEARING ON MERIT, WE HAVE CONFRONTED THE LD.DR TO DEMONSTRA TE AS TO WHETHER TAX EFFECT IS MORE THAN RS.50 LAKHS, AND WHY THIS APPEA L AGAIN BE NOT DISMISSED BY APPLYING LATEST CBDT INSTRUCTION NO.17 OF 2019 D ATED 8.8.2019, THE LD.DR MA NO.29/RJT/2019 WITH ITA. 2 WAS UNABLE TO CONTROVERT THE REASONS SOUGHT BY US. HE SUBMITTED THAT TAX EFFECT IS ROUGHLY RS.46 LAKHS. THEREFORE, IN VIEW OF THE LATEST CBDT INSTRUCTION, AND IN VIEW OF PROVISIONS OF SECTION 2 68A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE R EVENUE DESERVES TO BE DISMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT IS MO RE, OR REVENUE'S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRC ULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DIS MISSED DUE TO LOW TAX EFFECT. 3. IN THE RESULT, MA IS ALLOWED; APPEAL IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 24 TH SEPTEMBER, 2019 AT RAJKOT. SD/- SD/- (WASEEM AHMED ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER