DCIT, Cent.Cir.-1(2), Ahmedabad v. B.T. Corporation
[Citation -2019-LL-0911-85]

Citation 2019-LL-0911-85
Appellant Name DCIT, Cent.Cir.-1(2), Ahmedabad
Respondent Name B.T. Corporation
Court ITAT-Ahmedabad
Relevant Act Income-tax
Date of Order 11/09/2019
Assessment Year 2011-12
Judgment View Judgment
Keyword Tags retrospective effect • estimated profit • notional profit • monetary limit • tax effect • unaccounted sales
Bot Summary: Thus, according to him, there is no tax implication by the alleged deletion of addition at end of the CIT(A) and as such appeal of the Revenue in both the years are not maintainable because tax effect by virtue of relief given by the ld. On due consideration of the above factum of the case, we find that on 8.8.2019 the CBDT has issued Instructions bearing No. 17 of 2019 by which it has modified Circular No.3 of 2018 dated 11.07.2018 by enhancing the monetary limit for filing appeal by the Revenue before the Tribunal from Rs.20 lakhs to Rs.50 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present cases, tax effect on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.50 lakhs. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. In the result, appeal of the Revenue is dismissed due to low tax effect.


IN INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA No.1587 and 1702/Ahd/2016 /Asstt. Year: 2011-2012 and 2013-14 DCIT, Cent.Cir.1(2) Vs. M/s.B.T. Corporation Ahmedabad. B.T. House Nr. Police Station Pacnhvati Residency Kalol, Dist.Gandhiangar PAN : AAIFB 5811 A. (Appellant) (Respondent) Assessee by : Shri S.N. Soparkar, AR Revenue by : Shri Vinod Tanwani, Sr.DR Date of Hearing : 27/08/2019 Date of Pronouncement: 11/09/2019 ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: Present two appeals are directed at instance of Revenue against separate orders of ld.CIT(A) dated 21.3.2016 passed for Asstt.Year 2011-12 and 2013-14. 2. Revenue has pleaded that ld.CIT(A) has erred in deleting addition of Rs.1,24,17,161/- in Asstt.Year 2011-12 which was added by AO as estimated profit on accounted sales. Similarly, in Asstt.Year 2013-14, AO has worked out notional profit of Rs.2,02,97,410/- on alleged unaccounted sales. ld.counsel for ITA No.1587 and 1702/Ahd/2016 2 assessee at very outset submitted that in Asstt.Year 2013-14, AO has worked out profit alleged to have been earned by assessee on accounted sales by of Rs.2,02,97,410/-, but since assessee has disclosed income of Rs.2.50 crores, therefore, he did not make any separate addition. Thus, according to him, there is no tax implication by alleged deletion of addition at end of CIT(A) and as such appeal of Revenue in both years are not maintainable because tax effect by virtue of relief given by ld.CIT(A) is less than Rs.50 lakhs. 3. On due consideration of above factum of case, we find that on 8.8.2019 CBDT has issued Instructions bearing No. 17 of 2019 by which it has modified Circular No.3 of 2018 dated 11.07.2018 by enhancing monetary limit for filing appeal by Revenue before Tribunal from Rs.20 lakhs to Rs.50 lakhs. In other words, by virtue of this latest modification of circular dated 8.8.2019, CBDT has prohibited its subordinate authorities from filing of appeal before Tribunal against order of CIT(A) where tax effect by virtue of relief given by CIT(A) is less than Rs.50 lakhs. instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In present cases, tax effect on total income assessed minus tax that would have been chargeable had such total income been reduced by amount of income in respect of issue against which appeal is filed, is less than Rs.50 lakhs. Thus, keeping in view above CBDT circular and provisions of section 268A of Income Tax Act, we are of view that present appeal of Revenue deserves to be dismissed. It is accordingly dismissed. 4. However, it is observed that in case on re-verification at end of AO it can be demonstrated that tax effect is more, or ITA No.1587 and 1702/Ahd/2016 3 Revenue s case falls within ambit of exceptions provided in Circular, then Department will be at liberty to approach Tribunal for recall of this order relatable to such cases. Such application should be filed within time period prescribed in Act. In view of above, appeal of Revenue is dismissed due to low tax effect. 5. In result, appeal of Revenue is dismissed due to low tax effect. Order pronounced in Court on 11thSept., 2019 at Ahmedabad. Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER DCIT, Cent.Cir.-1(2), Ahmedabad v. B.T. Corporation
Report Error