M/s. Purnima Advertising Agency Pvt. Ltd., Ahmedabad V. The Income Tax Officer, Ward-3(1)(4), Ahmedabad

CO 215/AHD/2016

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3657 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 18-04-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 27-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRANAV N SHAH
• Keywords: Audit objection; Tax effect
• Section: 143(3); 14A

Judgement Text

ITA NO. 2815 & CO 215/AHD/2016 ASSESSEE- PURNIMA ADVERTISING AGENCY PVT LTD ASSESSMENT YEAR : 2010-11 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO.2815/AHD/2016 & CO NO.215/AHD/2016 ASSESSMENT YEAR: 2010-11 THE INCOME-TAX OFFICER ..................AP PELLANT WARD 3(1)(4), AHMEDABAD VS. PURNIMA ADVERTISING AGENCY PVT LTD ........................RESPONDENT & 5, SWETA PARK SOCIETY, CROSS-OBJECTOR NR. MANEKBAUG HALL, AMBAWADI, AHMEDABAD-15 [PAN : AAACP 9266 G] APPEARANCES BY: PRASOON KABRA FOR THE APPELLANT PRANAV N SHAH FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 18.04.2018 DATE OF PRONOUNCING THE ORDER : 18.04.2018 O R D E R PER BENCH: 1. THIS APPEAL BY THE REVENUE AND THE CROSS-OBJECTI ON THEREOF BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 12 TH AUGUST, 2016 PASSED BY THE LEARNED CIT(A)-9, AHMEDABAD IN THE MATTER OF ASSESSMENT UND ER SECTION 143(3) R.W.S. 147 OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEA R 2010-11. 2. THE GRIEVANCES RAISED BY THE ASSESSING OFFICER A RE AS FOLLOWS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF RS.6,29,244/- MADE U/S 14A OF THE ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME-TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF TH E ASSESSING OFFICER TO THE ABOVE EXTENT. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. COMMISSIONER OF INCOME-TAX (A) MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFI CER BE RESTORED TO THE ABOVE EXTENT. 3. SO FAR AS THE APPEAL OF THE REVENUE IS CONCERNED , AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE POINTS OUT THAT THE APPEAL OF THE REVENUE NEEDS TO BE ITA NO. 2815 & CO 215/AHD/2016 ASSESSEE- PURNIMA ADVERTISING AGENCY PVT LTD ASSESSMENT YEAR : 2010-11 PAGE 2 OF 2 DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. LEARNED COUNSEL FOR THE ASSESSEE ALSO SUBMITS THAT IN THE PRESENT CASE THE TAX EFFECT IS RS.3,86,960/- WHICH IS BELOW THE PRESCRIBED LIMIT OF RS.10 LACS AND HE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING P ERUSED 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. 142/200 7-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 BEL OW RS. 10 LACS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURT HER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIO NS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON S OME 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 CLA USE AND THE TAX IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTA INABLE AND HENCE DISMISSED. 5. THE APPEAL OF THE REVENUE IS THUS DISMISSED IN LIMINE. 6. AS THE APPEAL FILED BY THE REVENUE ITSELF IS FOU ND TO BE NON-MAINTAINABLE AND AS THE CROSS-OBJECTION OF THE ASSESSEE ARISES ONLY AS A RESULT OF THIS APPEAL, THE CROSS OBJECTION FILED BY THE ASSESSEE IS ALSO DISMI SSED AS INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL AND CROSS-OBJECTION, B OTH ARE DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 18 TH APRIL, 2018 SD/- SD/- S S GODARA PRAMOD K UMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 18 TH DAY OF APRIL, 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