THE ITO, WARD -3(1)(1), AHMEDABAD vs. SHRI VINOD VITTHALBHAI PATEL, AHMEDABAD

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ITA 804/AHD/2016Status: DisposedITAT Ahmedabad17 September 2018AY 2009-103 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 not maintainable, accepting the applicability of the CBDT Circular No. 3 of 2018 which revised monetary thresholds for appeals. The Revenue can seek restoration if they can show inapplicability of the circular.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition of Rs. 55,00,000/- and treating share transaction income as capital gain instead of business income. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for filing appeals.

What were the issues?

Whether the Revenue's appeal is maintainable based on the revised monetary limits prescribed by CBDT Circular No. 3 of 2018.

Which sections of the Income-tax Act were involved?

Section 2(22)(c),Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR

For Appellant: Shri Sanjeev Dev, Sr. D.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the Revenue against the order of the CIT(A)-9, Ahmedabad (‘CIT(A)’ in short), dated 04.01.2016 arising in the assessment order dated 10.03.2015 passed by the Assessing Officer (AO) under s. 143(3)

ITA No. 804/Ahd/16 [ITO vs. Shri Vinod V. Patel] A.Y. 2009-10 - 2 -

r.w.s. 147 of the Income Tax Act, 1961 (the Act) concerning assessment year 2009-10.

2.

The grounds 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 of Rs.55,00,000/- made on account of deemed divided u/s.2(22)€ of the Act on protective basis.

2.

the Ld. CIT(A) has erred in law and on facts in treating the income of (-) Rs.39,16,018/- from share transactions as capital gain, instead of business income as assessed by AO.”

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.3 of 2018 dated 11/07/2018 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, 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.20 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.20 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. 3 of 2018. 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

ITA No. 804/Ahd/16 [ITO vs. Shri Vinod V. Patel] A.Y. 2009-10 - 3 -

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 17/09/2018

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 17/09/2018 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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