What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal, citing a CBDT circular regarding withdrawal of appeals with a low tax effect. The Tribunal noted that the tax effect in this appeal was less than Rs. 10 lac.

The Revenue appealed against the CIT(A)'s order deleting Rs. 19 lac declared as unaccounted income during a survey. The assessee had bifurcated this income across different years and paid taxes on it.

What were the issues?

Whether the Revenue's appeal should be withdrawn/not pressed due to low tax effect as per CBDT circular.

ITO vs Shri Ramesh D. Shah, Surat | ITAT Ahmedabad 2017

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: Shri S.S. Godara & Shri Amarjit Singh

For Respondent: Shri Prajana Paramita, Sr. D.R

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri S.S. Godara, Judicial Member and Shri Amarjit Singh, Accountant Member Assessment Year 2011-12

The ITO, Shri Ramesh D. Shah, Ward-2(2)(4), 16-B Siddhashila Surat Vs Apartment, Nanpura, (Appellant) Surat-395001 PAN: ACQPS9804A (Respondent)

Revenue by: Shri Prajana Paramita, Sr. D.R. Assessee by: None Date of hearing : 10-08-2017 Date of pronouncement : 22-09-2017 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This Revenue’s appeal for A.Y. 2011-12, arises from order of the CIT (A)-I, Surat dated 30-03-2015 in appeal no. CAS-I/351/2013-14, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

None appeared on behalf of the assessee at the time of hearing. Therefore, we proceed to decide the appeal ex-parte qua the assessee, after hearing the Ld. DR and considering the material available on record.

I.T.A No. 1682/Ahd/2015 A.Y. 2011-12 Page No 2 ITO Vs. Shri Ramesh D. Shah

The Revenue’s sole substantive ground of appeal relates to the deleting of Rs.19 lac declared during survey as unaccounted income. The assessee has bifurcated the income in the different years on which taxes were also paid. The Ld. CIT (A) held that same cannot be taxed again once the department has brought to tax the same amount in different years.

We have heard the Ld. DR and gone through the record and the impugned order. There is no dispute that the net tax effect in the instant appeal is less than Rs. 10 lac. We find that the Central Board of Direct Taxes; hereafter the ‘Board’ has issued the circular no. 21/2015 dated 10- 12-2015 clearly envisaging therein that department’s pending appeals before the tribunal/high courts are to be withdrawn/not pressed as per the above stated circular. The same has been declared to be having retrospective effect in other words. We take into consideration the above stated Board’s circular and dismiss the instant appeal accordingly. It is further observed that in case on re-verification it comes to the notice that tax effect is more or fall within the ambit of exception provided in the instruction, then, the Department will be at liberty to approach the Tribunal for recall of order. Such application should be filed within limitation prescribed under the law.

In the result, the revenue’s appeal is dismissed as having low tax effect. Order pronounced in the open court on 22-09-2017 (S.S. GODARA) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 22/09/2017

I.T.A No. 1682/Ahd/2015 A.Y. 2011-12 Page No 3 ITO Vs. Shri Ramesh D. Shah

आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील"य अ"धकरण, अहमदाबाद

THE ITO, WARD-5(4), ( NOW WARD-2(2)(4)), SURAT vs. SHRI RAMESH D. SHAH, SURAT

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