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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: SHRI N.K. BILLAIYA & SHRI S. S. GODARA
PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. This appeal by the Revenue and the cross objection of the assessee are directed against the order of the ld. CIT(A)-13, Ahmedabad dated 22.05.2015 pertaining to A.Y. 2008-09.
ITA No. 2290/Ahd/2015 7 & C.O. No. 171/A/15 2 . A.Y. 2008-09 2. The sum and substance of the grievance of the revenue is that the ld. CIT(A) erred in allowing the claim of benefit of Section 54EC of the Act with respect to the capital gains earned by the assessee during the year under consideration.
At the very outset, the ld. counsel for the assessee furnished the following computation of tax effect: Parcsh N Shah Computation of Tax Effect for AY 2008-09 ITA No. 2290/A/2015 - Department's Appeal
Particulars Amount (Rs.)
Total Income as per AO Total Income as per CIT(A) 56,01,050 Amount contested as by the Department 23,41,050 32,60,000
Tax ® 20% 6,52,000
Education and Higher Education Cess @ 3% 19,560
Net Tax Impact 6,71,560
NOTE: The Department has challenged the action of the CIT(A) in deleting addition made by the AO for claim of deduction u/s. 54EC of the Act of Rs.32,60,000/-. The rate of tax on long term capital gain is 20%.
A perusal of the above shows that the tax effect being less than Rs. 10 lacs, the appeal has to be dismissed in the light of the CBDT Circular no. 21 of 2015 dated 10.12.2015.
If the revenue subsequently feels that the appeal is not hit by the said Circular of the CBDT it may approach the Tribunal as per provisions of the law.
ITA No. 2290/Ahd/2015 7 & C.O. No. 171/A/15 3 . A.Y. 2008-09
C.O. was not pressed by the ld. counsel and the same is also dismissed as not pressed.
Order pronounced in Open Court on 14 - 11- 2017.
Sd/- Sd/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER Ahmedabad: Dated: 14 /11/207 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER
Deputy/Asstt.Registrar ITAT,Ahmedabad