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Income Tax Appellate Tribunal, “B” BENCH, PUNE
Before: SHRI D.KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM
आदेश / ORDER
PER D. KARUNAKARA RAO, AM
This appeal is filed by the Revenue against the order of CIT(A)-2, Nashik, dated 22-03-2016 for the A.Y. 2009-10.
Grounds raised by the Revenue are extracted below :
“1. Whether on the facts and the circumstances of the case, the Id. CIT(A)-2, Nashik is justified in quashing the order dated 14.07.2014 passed by the A.O. u/s 143(3) r.w.s. 147 of the Act on the sole ground that the A.O has not brought on record any new material for recording reason for reopening the assessment? (T.E. Rs. 27,27,150/- on account of Capital Gain)
2 ITA No.1192/PUN/2016 Dr.Abdulrafique A. Shaikh
Whether on the facts and the circumstances of the case, the Id. CIT(A)-2, Nashik is justified in quashing the assessment proceedings reopened under Section 147 of the Income Tax Act, 1961 without appreciating that the power to reopen assessment is much wider under the amended provisions of section 147 of the Income Tax Act, 1961, w.e.f. 01.04.1989? 3. Whether on the facts and the circumstances of the case, the Id. CIT(A)-2, Nashik is justified in quashing the order dated 14.07.2014 passed by the A.O. u/s 143(3) r.w.s. 147 without appreciating the fact that the proceedings u/s 147 was initiated to bring to the tax, the escaped income, after recording the satisfaction by the Assessing Officer. 4. Whether on the facts and the circumstances of the case, the Ld. CIT(A)-2, Nashik is justified in quashing the order dated 14.07.2014 without appreciating the fact that the condition for action u/s 147 is that A.O should have reason to believe that income has escaped assessment which belief can be reached in any manner and is not qualified by a precondition of faith and true disclosure of material fact by the assessee as contemplated in the order?.
Any other ground that may be urged at the time of hearing.”
Briefly stated relevant facts includes that the assessee is an
individual and is engaged in the profession as Doctor. Assessee filed the
return of income declaring total income of Rs.9,93,572/-. AO assessed
the income of the assessee at Rs.10,04,180/-. The assessee earned
income from long term capital gain and claimed exemption u/s.54B of
the Act. Eventually, the AO vide order u/s.147 r.w.s.143(3) of the Act
made addition of Rs.71,15,531/- on account of disallowance of
deduction u/s.54B. In the First Appellate proceedings, however, the
CIT(A), relying on various judgmental laws granted relief to the assessee
and held that the notice issued u/s.148 of the Act and the consequential
reassessment is bad in law and void-ab-initio.
Aggrieved with the order of CIT(A), the Revenue is in appeal before
us with the aforementioned grounds.
3 ITA No.1192/PUN/2016 Dr.Abdulrafique A. Shaikh
At the outset, Ld. AR for the assessee submitted that the appeal
filed by the Department is liable to be dismissed on account of low tax
effect. The Ld. AR pointed that as per CBDT Circular No.3/2018 dated
11th July, 2018, the monetary limit for filing of appeal by the Department
before the Tribunal is Rs.20 Lakhs, therefore, the appeal filed by the
Department is not maintainable.
On the other hand, the Ld. DR for the Revenue defended the
assessment order and prayed for reversing the findings of the CIT(A).
However, the Ld. DR fairly admitted that the tax effect in the present
appeal is less than Rs.20 Lakhs.
Both sides are heard. On going through the facts of the case and
the orders of the Revenue, the total tax effect involved in the present
appeal works out to Rs.16,12,379/-. The CBDT circular No.3/2018
dated 11th July, 2018 raised the monetary limit of tax effect for filing of
appeal by the Department before the Tribunal to Rs.20 Lakhs. The
circular applies to the pending appeals of the Department before the
Tribunal too. Thus, in view of the CBDT circular, we are of the opinion
that the present appeal of the Revenue is liable to be dismissed on
account of low tax effect without going into the merits of the case.
In the result, the appeal of the Revenue is dismissed.
Order pronounced on 26th day of September, 2018.
Sd/- Sd/-
(िवकास अव�थी /VIKAS AWASTHY) (डी. क�णाकरा राव/D. KARUNAKARA RAO) �ाियक सद�/JUDICIAL MEMBER लेखा सद�/ACCOUNTANT MEMBER पुणे / Pune; िदनांक / Dated : 26th September, 2018. Satish
4 ITA No.1192/PUN/2016 Dr.Abdulrafique A. Shaikh
आदेश की %ितिलिप अ'ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��थ� / The Respondent. 2. 3. The CIT (Appeals)-2, Nashik 4. The Pr. CIT-2, Nashik िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “बी बी” ब"च, 5. बी बी पुणे / DR, ITAT, “B” Bench, Pune. गाड% फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER,
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune