ITO, WARD-3(3)(2), AHMEDABAD vs. KACHRAJEE MAFATAJI THAKOR, AHMEDABAD

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ITA 2382/AHD/2017Status: DisposedITAT Ahmedabad04 October 2019AY 2014-153 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 dismissed the Revenue's appeal as it was hit by a CBDT circular revising monetary limits for appeals. The tax effect in this case did not exceed the revised threshold, making the appeal not maintainable.

What were the facts?

The Revenue appealed the deletion of an addition made by the Assessing Officer regarding the disallowance of exemption under Section 54B. The assessee claimed the exemption, but the AO questioned the lack of details on crops sown and agricultural income.

What were the issues?

Whether the Revenue's appeal is maintainable based on the tax effect and CBDT circulars. The underlying issue was the validity of the exemption claimed by the assessee under Section 54B.

Which sections of the Income-tax Act were involved?

Section 54B,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD

For Appellant: Shri L. P. Jain, Sr.D.R, Shri Jignesh Parikh, A.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

1.

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-13, Ahmedabad (CIT(A)’ in short), dated 16.08.2016 arising in the assessment [ITO vs. Kachrajee M. Thakor] A.Y. 2014-15 - 2 - order dated 30.09.2016 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2014-15.

2.

The substantive ground of appeal raised by the Revenue reads as under:-

“1. The Ld.CIT(A) has erred in law and on facts in deleting the addition made by the AO on account of disallowance of exemption u/s 54B of the Act of Rs. 67,66,350/- without considering the fact that the assessee has not produced the details regarding crop sown or bills of the agricultural income.

2. The Ld.CIT(A) has erred in law and on facts in considering the assessee's plea on the presumption that the quantity of produce is so small that it is self consumed, neither valued nor sold in the market.

2. The Ld. CIT(A) has erred in considering the assessee's affidavit without appreciating the fact that the documents of impugned land nowhere shows the agricultural produce sown by the assessee.”

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that the 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 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 appeal of the Revenue is required to be dismissed in limine.

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 [ITO vs. Kachrajee M. Thakor] A.Y. 2014-15 - 3 - 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 04/10/2019

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 04/10/2019 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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