THE DCIT, CIRCLE-1(2), BARODA vs. SHRI DHAVAL DILIPBHAI PATEL, BARODA

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ITA 192/AHD/2017Status: DisposedITAT Ahmedabad01 October 2019AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was subject to the CBDT circular which revised monetary limits for appeals. Since the tax effect did not exceed the revised limit, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting disallowances of interest expenses and exemption claims. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of the CBDT circular on monetary limits for appeals and the tax effect of the disputed issues.

Which sections of the Income-tax Act were involved?

Section 57(ii),Section 54F,Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI KUL BHARAT & SHRI MANISH BORAD

For Appellant: Shri Sulabh Padshah

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-5, Vadodara (‘CIT(A)’ in short), dated 05.10.2016 arising in the assessment order dated 24.03.2015 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) in the assessment year 2012-13.

[DCIT vs. Shri Dhaval Dilipbhai Patel] A.Y. 2012-13 - 2 -

2.

The ground of appeal

raised by the Revenue reads as under:- “1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in law and fact in deleting the disallowance of interest expenses of Rs. 59,41,511/- u/s. 57(ii) of the Act, without appreciating the fact the AO is rightly justified in making such disallowances.

2. On the facts and in the circumstances of the case in law, the Ld. CIT(A) erred in law and fact in deleting disallowance of claim of exemption of Rs. 80,59,155/- u/s. 54F of the act, without appreciating the fact that the assessee had failed to comply with the provisions of section 54F(4) of the Act, in that, he had failed to deposit the unutilized amount in capital gains account, before furnishing the ROI u/s. 139(1) of the Act.

3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in law and fact in deleting the disallowance of expenses of Rs. 9,78,156/-, without appreciating the fact that this payment have no nexus with cost of acquisition and the same has not been incurred for any addition or alteration to the original asset.

4. The appellant craves leave to add to, amend or alter the above grounds as may be deemed necessary.”

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. It is inter alia noticed that the CBDT vide Instruction No. F. No. 279/Misc/M- 93/2018-ITJ dt. 20/08/2019 has observed that Circular No.17/2019 dated 08/08/2019 relating to enhancement of monetary limits is also applicable to all pending appeals. As per aforesaid Circular read with instructions, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

[DCIT vs. Shri Dhaval Dilipbhai Patel] A.Y. 2012-13 - 3 -

4.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

5.

In the result, the appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 01/10/2019

Sd/- Sd/- (KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 01/10/2019 TANMAY, Sr. PS TRUE COPY आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद । 1.Date of dictation on 01.10.2019 as per low tax effect format 2.Date on which the typed draft is placed before the Dictating Member 01.10.2019 3.Date on which the approved draft comes to the Sr.P.S./P.S. 01.10.2019 4.Date on which the fair order is placed before the Dictating Member for pronouncement 01.10.2019 5.Date on which the fair order comes back to the Sr.P.S./P.S 01 .10.2019 6.Date on which the file goes to the Bench Clerk 01.10.2019 7.Date on which the file goes to the Head Clerk…………. 8.The date on which the file goes to the Asstt. Registrar for signature on the order…………………… 9.Date of Despatch of the Order………

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