THE ACIT, CIRCLE-8, AHMEDABAD vs. VIJAY M.MISTRY CONSTRUCTION PVT.LTD., AHMEDABAD

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ITA 32/AHD/2012Status: DisposedITAT Ahmedabad03 September 2019AY 2007-083 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 appeals filed by the Revenue were to be dismissed as not maintainable due to the applicability of the CBDT circular enhancing monetary limits for appeals.

What were the facts?

The Revenue filed appeals against the deletion of interest under section 234B by the CIT(A). The assessee contended that the appeals were hit by a CBDT circular revising monetary limits for filing appeals.

What were the issues?

Whether the Revenue's appeals are maintainable in light of the revised monetary limits prescribed by the CBDT for filing appeals.

Which sections of the Income-tax Act were involved?

Section 234B,Section 80IA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA

For Appellant: Smt. Aparna Agarwal, DR & Shri S. K. Dev, Shri M. K. Patel, A.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

1.

The captioned appeals have been filed at the instance of the Revenue against the orders of the Commissioner of Income Tax (Appeals)-XIV, Ahmedabad (‘CIT(A)’ in short), both dated 21.10.2011 arising in the respective assessment orders dated 23.12.2009 & 20.11.2010 passed by the & 33/Ahd/12 [ACIT) vs. Vijay M. Mistry Construction Pvt. Ltd.] A.Ys. 2007-8 & 2008-09 - 2 - Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AYs. 2007-08 & 2008-09.

2.

The grievances raised being common, both the cases were heard together and disposed of by common order.

3.

The identical grounds of appeal raised by the Revenue in both appeals read as under:-

“1). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the interest u/s.234B of the Act, which is attributable to the disallowance u/s. 80IA of the I.T. Act. 2). On the facts and in the circumstances of the case, the Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has ought to have upheld the order of the Assessing Officer.”

4.

At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeals filed by the Revenue are 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 instruction, 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 both appeals of the Revenue are required to be dismissed in limine.

5.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, both & 33/Ahd/12 [ACIT) vs. Vijay M. Mistry Construction Pvt. Ltd.] A.Ys. 2007-8 & 2008-09 - 3 - appeals of the Revenue are dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeals on showing inapplicability of the aforesaid CBDT Circular in any manner.

6.

In the result, both appeals of the Revenue are dismissed.

This Order pronounced in Open Court on 03/09/2019

Sd/- Sd/- (MADHUMITA ROY) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 03/09/2019 True Copy S. K. SINHA 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 ।

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