Hipolin Ltd., Ahmedabad V. The Dy.CIT, Circle-4, Ahmedabad

CO 70/AHD/2014

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2431 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-11-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 05-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.2391/AHD/2013 ( / ASSESSMENT YEAR : 2006-07) THE DCIT CIRCLE-4 AHMEDABAD / VS. HIPOLIN LIMITED 4 TH FLOOR MADHUNAN NR.MADALPUR UNDER BRIDGE ELLISBRIDGE, AHMEDABAD-380 006 $ ./ ./ PAN/GIR NO. : AAACH 3876 J ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) AND CO NO.70/AHD/2014 AY 2006-07 (IN ITA NO.2391/AHD/2013 AY 2006-07) HIPOLIN LIMITED VS. THE DCI T AHMEDABAD .. AHMEDA BAD ( CROSS OBJECTOR ) ( RESPONDENT ) REVENUE BY : SHRI K. MADHUSUDAN, SR.DR APPELLANT BY : SHRI P.M. MEHTA, A.R. )*+, / DATE OF HEARING 29/11/2016 -./+, / DATE OF PRONOUNCEMENT 29/11/2016 / O R D E R PER PRADIP KUMAR KEDIA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-VIII, AHMEDABAD [CIT(A) IN ITA NO.2391/AHD/2013 (BY REVENUE) CO NO.70/AHD/2014 (BY ASSESSEE) DCIT VS. HIPOLIN LTD. ASST.YEAR 2006-07 - 2 - SHORT] DATED 24/07/2013 FOR THE ASSESSMENT YEAR (AY ) 2006-07 AND ASSESSEE IS IN CROSS OBJECTION THEREOF. THE REVENU E HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.13,09,000/- MADE ON ACCOUNT OF EXCISE DUTY AD DED TO THE CLOSING STOCK AS PER PROVISIONS OF SECTION 145A OF THE ACT. 2. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN PLACING RELIANCE ON THE JUDGMENT IN THE CASE OF ACIT V/S. NARMADA CHEMA TUR PETROCHEMICALS LTD. WHEREIN THE ASSESSMENT YEAR IN VOLVED WAS 1997-98 I.E. PRIOR TO THE AMENDMENT TO SEC.145A W.E .F. 1.4.1999 AND AS PER THE AMENDED PROVISIONS, IT IS MANDATORY TO M AKE ADJUSTMENTS TO THE CLOSING STOCK AS REQUIRED U/S.145A OF THE AC T. 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 LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED 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 TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. ITA NO.2391/AHD/2013 (BY REVENUE) CO NO.70/AHD/2014 (BY ASSESSEE) DCIT VS. HIPOLIN LTD. ASST.YEAR 2006-07 - 3 - 5. AS A RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 6. CROSS OBJECTION NO.70/AHD/2014 FOR AY 2006-07 ( IN ITA NO.2391/AHD/2013 AY 2006-07). THE FOLLOWING GROU ND HAS BEEN RAISED BY THE ASSESSEE IN ITS CROSS-OBJECTION:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LEARNED CIT(APPEALS) ERRED IN REJECTING THE GROUND RAISED B Y THE ASSESSEE REGARDING VALIDITY OF THE ASSESSMENT ORDER PASSED U /S.143(3) R.W.S. 147 OF THE ACT, AS THERE WAS NO NEW INFORMATION WITH TH E A.O. TO REOPEN THE ASSESSMENT. 7. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT HE DOES NOT WISH TO PRESS THE CROSS-OBJECTION FILED BY THE ASSESSEE. T HE LD.SR.DR HAS NO OBJECTION. IN VIEW OF THE STATEMENT MADE BY THE LD .COUNSEL FOR THE ASSESSEE, THE CROSS-OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS NOT PRESSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED AND CROSS- OBJECTION FILED BY THE ASSESSEE IS ALSO DISMISSED A S NOT PRESSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 29/11/2016 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 29/ 11 /2016 3..),.)../ T.C. NAIR, SR. PS ITA NO.2391/AHD/2013 (BY REVENUE) CO NO.70/AHD/2014 (BY ASSESSEE) DCIT VS. HIPOLIN LTD. ASST.YEAR 2006-07 - 4 - !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 456, 7, / CONCERNED CIT 4. 7, ( ) / THE CIT(A)-VIII, AHMEDABAD 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 .. 29.11.16(COVERED CASE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 29.11.16 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.29.11.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 29.11.16 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