ITO, Ward-6(1)(3) Ahmedabad v. Naresh Ramsinhbhai Thakor
[Citation -2019-LL-0923-5]

Citation 2019-LL-0923-5
Appellant Name ITO, Ward-6(1)(3) Ahmedabad
Respondent Name Naresh Ramsinhbhai Thakor
Court ITAT-Ahmedabad
Relevant Act Income-tax
Date of Order 23/09/2019
Assessment Year 2007-08
Judgment View Judgment
Keyword Tags low tax effect
Bot Summary: The Revenue is aggrieved by the action of the Id.CIT(A) in deleting addition made by the AO under section 68 of the Act. The Id.counsel for the assessee at the outset submitted that disputed addition in the present appeal is Rs.67,46,000/-, and therefore, Tax effect on the same is than Rs.50 lakhs. The present appeal of the Revenue is liable to be dismissed at the threshold. After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited. It is not disputed by the Revenue that tax effect on the disputed addition is more than Rs.50 lakhs, and therefore, 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.209/AHD/2017 Asstt.Year: 2007-2008 ITO, Ward-6(1)(3) Shri Naresh Ramsinhbhai Thakor Ahmedabad. Vs. Thakor Vas Khokhara Ahmedabad Road Ahmedabad. (Applicant) (Responent) Revenue by Shri Vinod Tanwani, Sr.DR Assessee by Ms.Urvashi Shodhan, AR Dateof Hearing 23/09/2019 Date of Pronouncement 23/09/2019 ORDER PER RAJPAL YADAV, JUDICIAL MEMBER Revenue is in appeal before Tribunal against order of ld.CIT(A)- 6, Ahmedabad dated 28.11.2016 passed for assessment year 2007-08. 2. Revenue is aggrieved by action of Id.CIT(A) in deleting addition made by AO under section 68 of Act. 3. Id.counsel for assessee at outset submitted that disputed addition in present appeal is Rs.67,46,000/-, and therefore, Tax effect on same is than Rs.50 lakhs. She filed copy of demand notice exhibiting demand of Rs.43,96,060/- being tax requires to be paid along with interest. She submitted that by virtue of recent CBDT Circular No.17 of 2019 dated 8.8.2019, Department has been instructed not to file appeal before Tribunal where tax effect is below Rs.50 lakhs. This instruction is applicable to pending cases also. Therefore, present appeal of Revenue is liable to be dismissed at threshold. Id.DR, however, ITA No.209/Ahd/2017 2 did not dispute applicability of recent CBDT circular and left to Tribunal to pass appropriate order in matter. 4. After hearing both sides and after perusal of above CBDT Instruction, we are of view that present appeal of Revenue falls within purview of CBDT Instruction cited (supra). It is not disputed by Revenue that tax effect on disputed addition is more than Rs.50 lakhs, and therefore, 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 dismissed. However, it is observed that in case on re-verification at end of AO it can be demonstrated that tax effect is more, or 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. 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 23rd September, 2019 at Ahmedabad. (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER ITO, Ward-6(1)(3) Ahmedabad v. Naresh Ramsinhbhai Thakor
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