M/s. Chloritech Industries, Ahmedabad V. The ACIT., Circle-10, Ahmedabad

CO 66/AHD/2012

• Counselvise Citation: [2016] 119 COUNSELVISE.COM (IT) 3338 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s) 19 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 20-06-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 28-02-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA
• Keywords: Audit objection; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ ITA NO. 3313 /AHD/201 1 & CO NO. 66 /AHD/201 2 / ASSESSMENT YEAR : 2006 - 07 ACIT, CIRCLE - 10 , AHMEDABAD VS M/S. CHLORITECH INDUSTRIES, HARIKUNJ, OPP C N VIDYALAYA, AMBAWADI, AHMEDABAD - 15 PAN : AABFC 2255 J / (APPELLANT) / (RESPONDENT) & CROSS - OBJECTOR REVENUE BY : SHRI SANJAY KUMAR , SR DR ASSESSEE BY : SHRI P M MEHTA , AR / DATE OF HEARING : 20 / 0 6 /201 6 / DATE OF PRONOUNCEMENT: 20 / 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) - XV I, AHMEDABAD DATED 14 . 10 .201 1 FOR A Y 2006 - 07 . 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL: - 1 ) THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN NOT CONSIDERING THE MERITS OF THE ISSUE AND ANNULLING THE RE - ASSESSMENT MADE TREATING VOID - AB - INITIO. 2 ) ON THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) OUT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3 ) IT IS , THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND THAT THE ORDER OF THE OF THE ASSESSING OFFICER BE RESTORED TO THE ABOVE EXTENT. 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. 4 . WITH REGARD TO REVENUES APPEAL, THE LEARNED COUNSEL FOR THE ASSESSEE CONTENDED TH AT AS PER THE CENTRAL BOARD OF DIRECT TAXES CIRCULAR NO. ITA NO. 3313/AHD/2011 & CO NO. 66/AHD/ 2012 ACIT VS CHLORITECH INDUSTRIES AY : 2006 - 07 2 21/2015 IN F.NO.279/MISC. 142/2007 - ITJ (PT) DATED 10TH DECEMBER 2015, THE REVISED LIMIT FOR PREFERRING REVENUE'S APPEALS BEFORE ITAT IS RS.10 LACS. THE LEARNED COUNSEL FOR THE ASSESSEE POINTED OUT T HAT THE TAX EFFECT IN THE PRESENT REVENUE'S APPEAL IS BELOW THE PRESCRIBED LIMIT OF RS. 10 LACS: THEREFORE, THE REVENUE'S APPEAL MAY BE DISMISSED AS THE TAX EFFECT BEING BELOW THE PRESCRIBED LIMIT. 5 . THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. 6 . WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. 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 I T 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 PROVISIONS 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 THAN RS. 10 LACS . THEREFORE, REVENUES PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 7 . IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS - OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 2 0 T H JUNE , 201 6 AT AHMEDABAD. SD/ - SD/ - ANIL CHATURVEDI ( ACCOUNTANT MEMBER ) R.P. TOLANI ( JUDICIAL MEMBER ) AHMEDABAD; DATED 2 0 /06/2016 *BIJU T. ITA NO. 3313/AHD/2011 & CO NO. 66/AHD/ 2012 ACIT VS CHLORITECH INDUSTRIES AY : 2006 - 07 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