THE ITO, WARD-6(4), AHMEDABAD vs. SHRI KIRITBHAI N. PATEL, AHMEDABAD

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ITA 1471/AHD/2014Status: DisposedITAT Ahmedabad17 August 2018AY 2010-113 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue as not maintainable, based on the CBDT circular which sets monetary limits for tax effect in appeals. The Revenue can seek restoration if they can show the circular is inapplicable.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 55,08,870/- made on account of suppression of stock. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of the CBDT circular on monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

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

For Appellant: Shri James Kurian, Sr. D.R, Shri M. K. Patel, A.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)-XVI, Ahmedabad (‘CIT(A)’ in short), dated 06.03.2014 arising in the assessment order dated 31.01.2013 passed by the Assessing Officer (AO)

ITA No.1471/Ahd/14 [ITO vs. Shri Kiritbhai N. Patel] A.Y. 2010-11 - 2 -

under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning assessment year 2010-11.

2.

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

“i) The CIT(A) has erred in law and on facts in deleting the addition of Rs.55,08,870/- made u/s.69 of the Act on account of Suppression of stock in terms of quantity of raw material declared in the books of accounts and the quantity of raw material declared in the bank statements.”

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.1471/Ahd/14 [ITO vs. Shri Kiritbhai N. Patel] A.Y. 2010-11 - 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 21/08/2018

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 21/08/2018 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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