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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA
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).
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.”
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.
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 -
In the result, the appeal of the Revenue is dismissed.
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.
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 ।