Pressure Parts Engg. Co., Ahmedabad V. The ACIT, Circle-2(2), Baroda

CO 136/AHD/2015

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 3114 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 04-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 13-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: V K SINGH
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1758/AHD/2015 AND CO NO.136/AHD/2015 ( / ASSESSMENT YEAR : 2011-12) THE DY.CIT CIRCLE-1(2) BARODA / VS. M/S.PRESSURE PARTS ENGG.CO. 220, SIDDHARTH COMPELX NEAR EXPRESS HOTEL R.C.DUTT ROAD, ALKAPURI BARODA 390 015 # ./ ./ PAN/GIR NO. : AAEEP 4272 D ( #% / APPELLANT ) .. ( &#% / RESPONDENT & CROSS OBJECTOR ) #%' / APPELLANT BY : SHRI V.K. SINGH, SR.DR &#%(' / RESPONDENT BY : SHRI KINJAL SHAH, AR )*(+ / DATE OF HEARING 30/08/2017 ,-./(+ / DATE OF PRONOUNCEMENT 04/09/2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-5, BAROD A [CIT(A) IN SHORT] DATED 13/02/2015 FOR THE ASSESSMENT YEAR (AY) 2011-12 AND ITA NO.1758/AH D/2015 & CO NO.136/AHD/2015 ACIT VS. PRESSURE PARTS ENGG.CO. ASST.YEAR 2011- 12 - 2 - ASSESSEE IS IN CROSS OBJECTION THEREOF. THE REVENU E HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE A SSESSEE WITHOUT APPRECIATING THE FACT OF THE CASE. 2. WHETHER THE LD.CIT(A) WAS CORRECT IN ALLOWING THE A PPEAL OF THE ASSESSEE BY NOT CONSIDERING THE FACT THAT THE ENQUI RIES DONE, CIRCUMSTANTIAL EVIDENCES AND STATEMENT RECORDED EST ABLISHES THE MODUS OPERANDI OF THE FIRM TO CLAIM BOGUS EXPENSES AND THE ASSESSEE FIRM HAD FAILED TO PROVE THE GENUINENESS O F THE EXPENSES CLAIMED? 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID CIRCULA R, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A ME ASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS RS.10 LAKHS. IN THE INSTANT CASE, T HE TAX EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STATED TO B E LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE D ISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE ITA NO.1758/AH D/2015 & CO NO.136/AHD/2015 ACIT VS. PRESSURE PARTS ENGG.CO. ASST.YEAR 2011- 12 - 3 - TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. 6. CROSS OBJECTION NO.136/AHD/2015 FOR AY 2011-12 (IN ITA NO.1758/AHD/2015 AY 2011-12). THE FOLLOWING GROU ND HAS BEEN RAISED BY THE ASSESSEE IN ITS CROSS-OBJECTION:- THE LD.CIT(A) HAS PASSED A VERY DETAILED AND SPEAKI NG ORDER CONSIDERING THE FACTS OF THE CASE AND PROVISIONS OF LAW AND HAS RIGHTLY HELD THAT RS.29,46,400/- WAS A GENUINE BUSI NESS EXPENDITURE INCURRED BY THE RESPONDENT DURING COURS E OF BUSINESS AND FOR PURPOSE OF BUSINESS. IT IS THEREF ORE SUBMITTED THAT THE APPEAL FILED BY THE DEPARTMENT BE DISMISSE D AND BE HELD AS INFRUCTUOUS. 7. IT WAS SUBMITTED ON BEHALF OF THE ASSESSEE AT T HE TIME OF HEARING THAT THE CROSS OBJECTION OF THE ASSESSEE IN THE APP EAL OF THE REVENUE HAS BEEN FILED MERELY TO SUPPORT THE ORDER OF THE CIT(A ). IT WAS FURTHER SUBMITTED THAT SINCE THE REVENUES APPEAL STANDS DI SMISSED, THE CO FILED BY THE ASSESSEE IS RENDERED INFRUCTUOUS. 8. IN THE LIGHT OF THE SUBMISSIONS OF THE ASSESSEE, THE CO OF THE ASSESSEE IS DISMISSED. ITA NO.1758/AH D/2015 & CO NO.136/AHD/2015 ACIT VS. PRESSURE PARTS ENGG.CO. ASST.YEAR 2011- 12 - 4 - 9. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS OBJECTION OF THE ASSESSEE BOTH ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 04 / 09 /2017 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 04/ 09 /2017 3..),.)../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-V, VADODARA 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. : * / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 30.8.17(COVERED CASE TAX E FFECT) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30.8.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.5.9.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.9.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER