The ITO, S.K, Ward-1, Himmatnagar V. Shri Nareshkumar Chhaganbhai Patel, Ahmedabad

MA 56/AHD/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4876 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-04-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 12-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V.K. SINGH
• Keywords: Tax effect

Judgement Text

आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ A’’ BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And Ms. MADHUMITA ROY, JUDICIAL MEMBER, M.A No.56/Ahd/2020 In आयकर अपील सं./In ITA No. 485/Ahd/2019 िनधाᭅरण वषᭅ/Asstt. Year: 2015-2016 I.T.O., S.K.Ward-1, Himatnagar. Vs. Shri Nareshkumar Chhaganbhai Patel, B-301, Yash Platinum, Opp. Herath Party Plot, Science City Road, Sola, Ahmedabad. PAN: ALPPP7112A (Applicant) (Respondent) Revenue by : Shri V.K. Singh, Sr. D.R Assessee by : Shri A.C. Shah, A.R सुनवाई कᳱ तारीख/Date of Hearing : 25/03/2022 घोषणा कᳱ तारीख /Date of Pronouncement: 05/04/2022 PER WASEEM AHMED, ACCOUNTANT MEMBER: The Revenue by way of this Miscellaneous Application is seeking to recall the consolidated order dated 27/08/2019 passed by the ITAT in ITA No. 485/Ahd/2020 for the A.Y. 2015-16 on the reasoning that the tax effect is less than Rs.50 lacs. M.A No.56/AHD/2020 In ITA No.485/Ahd/2019 Asstt. Year 2015-16 2 2. The Ld. DR submitted that the tax effect in the impugned case is more than Rs. 50 lacs, precisely for an amount of Rs.50,51,498/- and therefore the appeal cannot be dismissed in terms of the CBDT Circular No. 17/2019 dated 08/08/2019. Accordingly, the order of the ITAT should be recalled. 2.1 The Ld. DR in support of his contention has filed the tax demand raised in the computer system of the Income-tax Department which is placed on record. 3. On the other hand, the Ld. AR, contended that the tax effect is less than Rs. 50 lacs and filed the tax working which is reproduced as under: Total Income as per Assessment Order Rs. 1,5,53,050 Tax thereon: Rs.2,50,000 to Rs.5,00,000 @ 10% Rs.25,000 Rs.5,00,000 to Rs.10,00,000/- @ 20% Rs.1,00,000 Balance amount of Rs.1,41,53,050@ 30% Add: Surcharge @ 10% Rs.42,95,915 Rs.43,70,915 Rs. 4,37,092 Add: Education Cess @ 2% Rs.48,08,007 Rs. 96,160 Rs. 48,080 Total Less: Tax on return income of Rs.3,12,000 Net Tax Effect Rs.49,45,921 which is below Rs.50,00,000 Rs.49,52,247 Rs. 6,326/- Rs.49,45,921 4. We have heard the rival contentions of both the parties and perused the materials available on record. In the present case, the assessee has filed his return of income declaring income of Rs. 3,12,000/- but the assessment was framed u/s 143(3) of the Act at Rs. 1,51,53,050/- after making addition of Rs. 1,48,41,050/- Thus, the disputed addition stands at Rs.1,48,41,050/- only which was deleted by the Ld.CIT(A). Hence, the appeal was preferred before the ITAT which was dismissed due to low tax effect vide consolidated order dated 27/08/2019. 5. On perusal of the tax working filed by the Revenue we note that the tax has been calculated for Rs. 50,51,498/- at an income of Rs.1,51,53,050/- which is M.A No.56/AHD/2020 In ITA No.485/Ahd/2019 Asstt. Year 2015-16 3 inclusive of the amount of income offered by the assessee to tax in the income tax return which is also not in dispute. Thus, the tax working filed by the Ld. DR does not speak about the exact amount of tax on the disputed addition rather it speaks about gross total income i.e. income offered to tax and disputed addition. Such working of the Department as submitted by the Ld. DR was not correct. As it does not consider only the disputed amount of income/addition. 6. Accordingly, we hold that the tax working given by the assessee is correct which is below the limit specified in the Circular. Thus, the Miscellaneous Application filed by the Revenue is not maintainable. Hence, the same is dismissed. 7. In the result, the Miscellaneous Application of the Revenue is dismissed. Order pronounced in the Court on 05/04/2022 at Ahmedabad. Sd/- Sd/- (MADHUMITA ROY) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 05/04/2022 Manish