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Income Tax Appellate Tribunal - Rajkot

Assistant Commissioner Of Income Tax, ... vs Tacon Infrastructure P. Ltd.,, ... on 24 March, 2017

          आयकर अपील य अ धकरण: राजकोट यायपीठ: राजकोट
IN THE INCOME TAX APPELLATE TRIBULAL: RAJKOT BENCH: RAJKOT
     BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND
         SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER

                 आयकर अपील सं./ ITA No.423/RJT/2014
                 नधारण वष/Assessment Year: 2006-07

     ACIT,                              M/s.Tacon Infrastructure Pvt
     Circle-2,                   Vs    Ltd., Tacon Complex, 3-Wadi
     Jamnagar                          Plot, Porbandar.
                                       PAN : AABCT4416D

          अपीलाथ / (Appellant)                      यथ / (Respondent)



         Revenue by       :           Shri Avinash Kumar, D.R
        Assessee by       :           Shri Ankit Gokani, C.A

      सुनवाई क तार ख/ Date of Hearing           :    22/03/2017
      घोषणा क तार ख /Date of P ronouncement: 24/03/2017

                              आदेश /O R D E R

PER SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER:

The Department has filed the above appeal against the order of Ld.CIT(A)-I, Rajkot dated 26/02/2014 for assessment year 2006-07.

2. At the outset, Ld.Councel for the assessee, submitted that Assessing Officer while levying penalty u/s.271(1)(c) has considered the concealed income at Rs.32,43,020/- as against Rs.20,24,847/- which was the interest income on which deduction under section 80-IA was denied in the order passed u/s.143(3) r.w.s 263. Ld.Counsel pointed out that on merit Ld.CIT(A) has deleted penalty and revenue is in appeal. He submitted that if the correct impugned amount is taken, then the tax effect will be less than Rs.10 Lacs and the department has to withdraw the appeal as per the circular issued by the CBT No.21/2015 dated 10/12/2015, because the said circular is applicable to all pending appeals.

A.Y.2006-07 -2-

3. The Ld.DR relied upon the order of the Assessing Officer.

4. We have considered the submission of both the parties and find that in the written submission assessee has in detail explained the sequence of proceedings and has pointed out that interest income was Rs.20,24,847/- on which deduction u/s. 80I-A was denied in view of decision of Hon'ble Supreme Court in the case of Liberty India. However, penalty was deleted by Ld.CIT(A) and now the Department is in appeal. Under such circumstances the tax effect is less than Rs. 10 lacs. Therefore, we restore the matter to the file of Assessing Officer to examine the assessee's contention. If the contention is found to be correct, the Revenue's appeal cannot survive. However, if the tax effect is found to be more than Rs.10 lacs then Revenue will be free to file application for revival of its appeal and the assessee would be free to advance its argument on merits.

5. In the result, appeal is allowed for statistical purpose in terms of aforesaid direction.

Order pronounced in the Court on 24th March, 2017.

                Sd/-                                     Sd/-
      (K. NARASIMHA CHARY)                       (S.V. MEHROTRA)
       JUDICIAL MEMBER                         ACCOUNTANT MEMBER
Rajkot, Dated 24/03/2017
*Manish

आदेश क      त ल प अ े षत / Copy of Order Forwarded to:-
1. अपीलाथ / Appellant-
2.   यथ / Respondent-
3. संबं धत आयकर आयु त / Concerned CIT/DIT
4. आयकर आयु त- अपील / CIT (A)-IV, Rajkot
5. वभागीय     त न ध, आयकर अपील य अ धकरण, राजोकट / DR, ITAT, Rajkot
6. गाड फाइल / Guard file.
                                                                 आदेशानुसार / BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण/ ITAT, Rajkot