Income Tax Appellate Tribunal - Ahmedabad
Kakan Krishnan Prasad,, Ahmedabad vs The Income Tax Officer, Ward-3(2)(7),, ... on 4 September, 2018
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ ''सी'' अहमदाबाद।
IN THE INCOME TAX APPELLATE TRIBUNAL
"C" BENCH, AHMEDABAD
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER
ITA No. 1981/Ahd/2016 & CO No.135/Ahd/2016
Assessment Year : 2010-11
Income Tax Officer, Shri Kakan Krishnan Prasad,
Ward 3(2)(7), Vs 5, Calico Nagar, B/h.
Ahmedabad Windsome MG Hotel,
Narol-Isanpur Road, Narol,
Ahmedabad
PAN : ACPPP 9394 M
अपीलाथ / (Appellant) यथ / (Respondent/
Cross-Objector)
Revenue by : Shri S.K. Dev, Sr DR
Assessee by : Shri Biren Shah
सुनवाई क तार ख/ Dateof Hearing : 04/09/2018
घोषणा क तार ख / Date of Pronouncement: 04/09/2018
आदे श/O R D E R
PER RAJPAL YADAV, JUDICIAL MEMBER :-
The Revenue is in appeal before the Tribunal against the order of the ld. Commissioner of Income-tax (Appeals)-3, Ahmedabad dated 18.05.2016 passed for Assessment Year 2010-11. On receipt of notice in the Revenue's appeal, the assessee has filed Cross-Objection bearing No. 135/Ahd/2016.
2. The Revenue has taken following grounds in its appeal:-
"1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.57,08,031/- made on account of short credit of freight income in the books of account.
2. On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer."ITA No. 198/Ahd/2016 & CO 135/Ahd/2016
Shri Kakan Krishanan Prasad Vs. ITO AYs : 2010-11 2
3. At the outset, ld. Counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No.3 of 2018 dated 11.07.2018. The learned Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular.
4. We have heard the rival submissions and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No. 3/2018 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 11th July, 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)'s order is below Rs. 20 lacs. The Board has provided exemptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board's order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts etc. We find that the present case does not fall within the exemption clause and the tax effect is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.
5. However, at this stage, learned Departmental Representative is unable to make a categorical statement of facts. Hence, on re-verification at the end of the Assessing Officer, if it comes out that the tax effect by virtue of relief given by the learned CIT(A) is more or Revenue's case falls within the ambit of exceptions provided in the aforesaid Circular, then the Revenue will be at liberty to approach the Tribunal for recall of this order. However, such ITA No. 198/Ahd/2016 & CO 135/Ahd/2016 Shri Kakan Krishanan Prasad Vs. ITO AYs : 2010-11 3 application should be filed within the time limit prescribed under the Income- tax Act.
6. As far as the Cross-Objection of the assessee is concerned, the assessee had challenged the reopening of assessment by issuance of notice u/s 148 of the Income-tax Act. Since the relief has already been granted to the assessee by the learned CIT(A) on merits and we have dismissed the appeal of the Revenue on account of low tax effect, therefore, we do not deem it necessary to adjudicate the Cross-Objection on merits at this stage. In case, on Revenue's application the appeal is revived, then the assessee will be at liberty to ask for revival of this Cross-Objection. With the above observations, the appeal and Cross-Objection are dismissed.
7. In the result, the appeal of the Revenue and Cross-Objection of the assessee, both are dismissed.
Order pronounced in the Court on 4th September, 2018 at Ahmedabad.
Sd/- Sd/- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad, Dated 04/09/2018 *Bt
आदे श क त ल प अ े षत/Copy of the Order forwarded to :
1. अपीलाथ! / The Appellant
2. "यथ! / The Respondent.
3. संबं&धत आयकर आयु(त / Concerned CIT
4. आयकर आयु(त (अपील)/ The CIT(A)-
5. वभागीय त न&ध,आयकर अपील य अ&धकरण ,राजोकट/DR,ITAT, Ahmedabad,
6. गाड1 फाईल /Guard file.
आदे शानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपील य अ&धकरण ITAT, Ahmedabad