Income Tax Appellate Tribunal - Ahmedabad
The Dcit, Circle-9, Ahmedabad vs Shri Arvind M. Patel, Ahmedabad on 19 August, 2019
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ ।
IN THE INCOME TAX APPELLATE TRIBUNAL,
"B" BENCH, AHMEDABAD
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
AND
SHRI AMARJIT SINGH, ACCOUNTANT MEMBER
IT(SS)A No.235/Ahd/2013
नधा रण वष / Block Period : [1996-97 to 2001-02 and 01/04/2002 to
25/07/2002]
DCIT, Cir.9 Shri Arvind M. Patel
Ahmedabad. Vs. 10-59, Santosh Park
Nr. Vijay Nagar, Naranpura
Ahmedabad 380 013
PAN P: AAIFM 5900 B
(Applicant) (Responent)
Revenue by : Shri Mudit Nagpal, Sr.DR
Assessee by : Ms.Urvashi Shodhan, AR
सन
ु वाई क तार ख/ Dateof Hearing : 19/08/2019
घोषणा क तार ख / Date of Pronouncement: 19/08/2019
आदे श/O R D E R
PER RAJPAL YADAV, JUDICIAL MEMBER:
Revenue is in appeal before the Tribunal against order of ld.CIT(A)- XV, Ahmedabad dated 8.3.2013 passed for the above block period.
2. The Revenue has raised the following grounds in its appeal:
"1a). The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in directing to adopt gross profit @ Rs. 1,02,04,891/- as against Rs. 1,47,78,590/- adopted by the Assessing Officer on the ground of gross profit of Rs.1,72,38,894/- from 'Indian' & 'Gadar' films & allowing loss incurred on films 'Kranti' & 'Shahid'.
1b). The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in deleting the addition of Rs.46,24,199/-
out of total addition of Rs.76,77,561/- made on account of undisclosed IT(SS)A No.235/Ahd/2013 2 income from Film distribution business under the name of M/s. Surya Enterprise.
2). The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in deleting the addition of Rs.4,59,000/- out of total addition of Rs.41,96,500/-made on account of cash deposit.
3). On the facts and in the circumstances of the case, the Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad ought to have upheld the order of the Assessing Officer.
4). It is therefore, prayed that the order of the Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad may be set-aside and that of the Assessing Officer be restored."
3. At the outset, the ld.counsel for the assessee has submitted that on 8th August, 2019 CBDT has issued a circular vide which it has instructed Revenue authorities not to file appeal before the Tribunal where tax effect is below Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the tax effect on the impugned additions disputed by the Revenue being less than Rs.50 lakhs, the present appeal filed by the Revenue is not admissible at the threshold, and therefore, appeal of the Revenue be dismissed summarily as such. Though the ld.DR does not dispute about the applicability of the above circular, but left to the Tribunal to decide its appeal in accordance with law.
4. We find that on 8.8.2019 the CBDT has issued Instructions bearing No. 17 of 2019 by which it has modified Circular No.3 of 2018 dated 11.07.2018 by enhancing the monetary limit for filing appeal by the Revenue before the Tribunal from Rs.20 lakhs to Rs.50 lakhs. In other words, by virtue of this latest modification of the circular dated 8.8.2019, the CBDT has prohibited its subordinate authorities from filing of the appeal before the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.50 lakhs. The instructions have been made IT(SS)A No.235/Ahd/2013 3 applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present cases, "tax effect" on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.50 lakhs. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.
However, it is observed that in case on re-verification at the end of the AO it can be demonstrated that the tax effect is more, or Revenue's case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order relatable to such cases. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.
5. In the result, appeal of the Revenue is dismissed due to low tax effect.
Order pronounced in the Court on 19th August, 2019 at Ahmedabad.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 19/08/2019