Narayan Processors, Surat V. The ACIT, Circle-6, Surat

CO 139/AHD/2013

• Counselvise Citation: [2016] 119 COUNSELVISE.COM (IT) 3366 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 14 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 17-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VILAS V SHINDE
• Assessee Lawyers: GULAB M THAKOR
• Keywords: Audit objection; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI MANISH BORAD , ACCOUNTANT MEMBER ./ ITA NO. 940 /AHD/201 3 & CO NO.139/AHD/2013 / ASSESSMENT YEAR : 2008 - 09 ACIT, CIRCLE - 6, SURAT VS M/S. NARAYAN PROCESSORS, PLOT NO.151 - 152, GIDC, PANDESARA, SURAT - 394221 PAN : AACFN 0361 R / (APPELLANT) / (RESPONDENT) & CROSS - OBJECTOR REVENUE BY : SHRI VILAS V. SHINDE, SR DR ASSESSEE BY : SHRI GULAB M. THAKOR, AR / DATE OF HEARING : 01 / 0 6 /201 6 / DATE OF PRONOUNCEMENT: 01 / 06 /201 6 / O R D E R PER R.P. TOLANI , JUDICIAL MEMBER: - THIS APPEAL BY THE REVENUE AND THE CROSS - OBJECTION THEREOF FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME - TAX (APPEALS) - I, SURAT DATED 29 .0 1 .201 3 FOR ASSESSMENT YEAR 2008 - 09 . 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL: - 1 ) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN RESTRICTING THE ADDITION FROM RS.4,42,750/ - TO RS.32,324/ - MADE ON ACCOUNT OF FACTORY EXPENSES. 2 ) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.7,03,247/ - MADE ON COMMISSION EXPENSES. 3 ) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A), SURAT OUGHT TO HAVE UPHELD THE ORDER O F THE ASSESSING OFFICER. 4 ) IT IS , THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A), SURAT MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER ORDER MAY BE RESTORED. 3 . BEFORE US, AT THE OUTSET, LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT HE IS NOT PRESSING THE CROSS - OBJECTION; HENCE THE CROSS - OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS NOT PRESSED. ITA NO. 940/AHD/2013 & CO NO. 139/AHD/ 2013 ACIT VS. M/S NARAYAN PROCESSORS AY : 2008 - 09 2 4 . WITH REGARD TO REVENUES PRESENT APPEAL, THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE SAME NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EF FECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. HE HAS ALSO SUBMITTED THAT IN THE PRESENT CASE THE TAX EFFECT IS RS. 3,44,125 / - WHICH IS BELOW THE PRESCRIBED LIMIT OF RS.10 LACS AND HE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 5 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT PRIMA - FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007 - ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME - TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS , THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVI SIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS TH AN RS. 10 LACS . THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 6 . IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS - OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 1 ST JUNE , 201 6 AT AHMEDABAD. SD/ - SD/ - MANISH BORAD ( ACCOUNTANT MEMBER ) R.P. TOLANI ( JUDICIAL MEMBER ) AHMEDABAD; DATED 01 / 0 6 /201 6 *BIJU T. ITA NO. 940/AHD/2013 & CO NO. 139/AHD/ 2013 ACIT VS. M/S NARAYAN PROCESSORS AY : 2008 - 09 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD