THE ITO, WARD-5(3)(1), AHMEDABAD vs. SHRI KSHITINBHAI PRAVINBHAI SHETH, AHMEDABAD

PDF · subscribers
ITA 839/AHD/2017Status: DisposedITAT Ahmedabad04 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 based on the CBDT circular regarding monetary limits for appeals. The assessee's cross-objection was dismissed as not pressed.

What were the facts?

The Revenue appealed against the CIT(A)'s order restricting an addition on account of bogus purchases. The assessee argued that the Revenue's appeal was not maintainable due to a CBDT circular revising monetary thresholds for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of revised monetary limits prescribed by CBDT circular. Whether the assessee's cross-objection is pressed.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA

For Respondent: Shri Mudit Nagpal, 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)-5, Ahmedabad (‘CIT(A)’ in short), dated 03.01.2017 arising in the assessment order dated 18.02.2016 passed by the Assessing Officer (AO) u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961; (the Act) concerning assessment

ITA No. 839/Ahd/17 with CO No. 79/Ahd/2017 ITO vs. Shri Kshitinbhai P. Sheth] A.Y. 2009-10 - 2 -

year 2009-10. The assessee has also filed cross-objection in the Revenue’s appeal supporting the action of the CIT(A).

2.

The grounds of appeal raised by the Revenue as under:

“1. The Ld. CIT(A) has erred in law and on facts in restricting the addition of Rs.49,47,495/-, made on account of disallowance of purchases treating it as bogus/not genuine, to Rs.2,47,375, without appreciating the fact that the assessee has failed to prove the genuineness of purchases from Shri Bhanwarlal Jain Group.”

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 showing

inapplicability of the aforesaid CBDT Circular in any manner.

ITA No. 839/Ahd/17 with CO No. 79/Ahd/2017 ITO vs. Shri Kshitinbhai P. Sheth] A.Y. 2009-10 - 3 -

5.

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

6.

The assessee has filed Cross Objection in the Revenue’s appeal

challenging the jurisdiction of the AO to reopen the assessment under

s. 147 of the Act. However, the Ld.AR for the assessee at the time of

hearing made a statement at the bar that the cross objection raised on

behalf of the assessee is not pressed. The Cross Objection is

accordingly dismissed as not pressed.

7.

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

whereas assessee’s Cross Objection is dismissed as not pressed.

This Order pronounced in Open Court on 04/09/2018

Sd/- Sd/- (RAJPAL YADAV) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 04/09/2018 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 ।

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →