Friends Oil & Chemical Terminals Pvt. Ltd., Gandhidham V. The Dy. Commissioner of Income Tax, Central Circle-2(3), Ahmedabad

CO 148/AHD/2016

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9170 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-12-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 06-10-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K C THAKER; CROSSOBJECTOR HEA
• Assessee Lawyers: SU RENDRA KUMAR
• Keywords: Audit objection; Tax effect
• Section: 143(3)

Judgement Text

IT(SS)A NOS. 180 & 182 /AHD/2016 & CO NOS. 148 TO 150/AHD/2016 ASSESEE : FRIENDS OIL & CHEMICALS TERMINALS PVT LT D ASSESSMENT YEAR : 2006-07TO 2008-09 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR, VP AND MS. MADHUMITA ROY, JM] IT(SS)A NOS. 180 & 182/AHD/2016 & CO NOS. 148 & 15 0/AHD/2016 ASSESSMENT YEAR: 2006-07 & 2008-09 AND CO NO.149/AHD/2016 (IN IT(SS)NO. 181/AHD/2016) ASSESSMENT YEAR : 2007-08 DEPUTY COMMISSIONER OF INCOME-TAX ........... .......APPELLANT CENTRAL CIRCLE-2(3), AHMEDABAD VS. FRIENDS OIL & CHEMICAL TERMINALS PVT LTD ........................RESPONDENT & MAITRI BHAVAN, CROSS-OBJECTOR PLOT NO. 18, SECTOR NO. 8, GANDHIDHAM-KUTCH-370201 [PAN : AAACF 3177 A] APPEARANCES BY: SURENDRA KUMAR , FOR THE APPELLANT KC THAKER , FOR THE RESPONDENT & CROSS-OBJECTOR HEARING CONCLUDED ON: 13.12.2018 ORDER PRONOUNCED ON : 17.12.2018 O R D E R PER PRAMOD KUMAR, VP: 1. THESE TWO APPEALS BY THE REVENUE FOR ASSESSMENT YEAR 2006-07 & 2008-09 AND THE CROSS-OBJECTIONS THEREOF BY THE ASSESSEE AR E DIRECTED AGAINST THE COMMON ORDER DATED 28.03.2016, PASSED BY THE LEARNED CIT(A )-12, AHMEDABAD IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 153A(1)(B ) OF THE INCOME-TAX ACT, 1961. THE CROSS-OBJECTION BEARING CO NO.149/AHD/2016 IS PRESENTED AT THE INSTANCE OF ASSESSEE IN APPEAL OF THE REVENUE, I.E. IT(SS)NO. 1 81/AHD/2016 FOR ASSESSMENT YEAR 2007-08. 2. BEFORE US, AT THE OUTSET, LEARNED COUNSEL FOR TH E ASSESSEE SUBMITTED THAT HE IS NOT PRESSING THE CROSS-OBJECTIONS; HENCE THE CRO SS-OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED AS NOT PRESSED. 3. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEALS OF THE REVENUE NEED TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.3 OF 2018 DATED 11.07. 2018. THE LEARNED IT(SS)A NOS. 180 & 182 /AHD/2016 & CO NOS. 148 TO 150/AHD/2016 ASSESEE : FRIENDS OIL & CHEMICALS TERMINALS PVT LT D ASSESSMENT YEAR : 2006-07TO 2008-09 PAGE 2 OF 2 DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT INVOLVED IN THESE APPEALS IS LESS THAN THE LIMIT PRESCRIBED BY THE AF ORESAID CBDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THESE APPEALS OF T HE REVENUE ARE NOT MAINTAINABLE IN VIEW OF THE CBDT CIRCULAR NO. 3/2018 DATED 11TH JULY, 2018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPE ALS SHOULD BE FILED BEFORE THE TRIBUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISS IONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THES E INSTRUCTIONS WILL NOT BE APPLICABLE, WHERE THE CONSTITUTIONAL VALIDITY OF TH E PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHERE BOARDS ORDER, NOTIFICATION, INS TRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT OR WHERE THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASES DO NO T FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS, IN EACH CASE. THEREFORE, THE PRESENT APPEALS ARE NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE AND CR OSS-OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPE N COURT ON THIS 17 TH DAY OF DECEMBER, 2018. SD/- SD/- MS. MADHUMITA ROY PRA MOD KUMAR (JUDICIAL MEMBER) (VICE PRESIDENT) AHMEDABAD, THE 17 TH DAY OF DECEMBER, 2018 *BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: 13.12.2018.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ..13.12.2018......... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: ..17.12.2018... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT:... 17.12.2018.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 17.12.2018.................... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 8. DATE OF DESPATCH OF THE ORDER: ......