INCOME TAX OFFICER, WARD-1, NIZAMABAD V. A S R AGRO INDUSTRIES, NIZAMABAD

ITA 1074/HYD/2024

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-1, Nizamabad against ASR Agro Industries concerning an addition of Rs.2,08,666/- for disallowance of VAT payments, which was initially made by the Assessing Officer but later deleted by the CIT (A)-NFAC Delhi. The Revenue's appeal was primarily based on the argument that the case fell under exceptions provided in CBDT Circular No.5/2024, which would allow the appeal to proceed despite the monetary limits set by Circular No.9/2024. However, the tribunal found that the exceptions did not apply as the case did not involve any constitutional challenges or illegalities in the provisions of the Act, rules, or notifications.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26872 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SM-A
• Assessment Year: 2012-2013
• Laws Referred To: CBDT Circular No.9/2024, CBDT Circular No.5/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T. VENKANNA
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Tax effect

Judgement Text

" ITA No 1074 of 2024 ASR Agro Industries Page 1 of 5 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.1074/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2012-13) Income Tax Officer Ward-1 Nizamabad Vs. ASR Agro Industries Nizamabad PAN:AATFA4163D (Appellant) (Respondent) राज̾ व Ȫारा/Revenue by: Shri T. Venkanna, DR िनधाŊįरती Ȫारा/Assessee by: Shri P Murali Mohan Rao, CA सुनवाई की तारीख/Date of hearing: 05/12/2024 घोषणा की तारीख/Pronouncement: 21/02/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the Revenue is directed against the order dated, 26/08/2024 of the learned CIT (A)-NFAC Delhi, for the A.Y.2012-13. 2. The Revenue has raised the following grounds of appeal: ITA No 1074 of 2024 ASR Agro Industries Page 2 of 5 3. As it is manifest from the grounds of appeal that, the only dispute in this appeal of the Department is regarding the addition made by the Assessing Officer of Rs.2,08,666/- towards disallowance of VAT payments was deleted by the learned CIT (A) and therefore, the tax effect in the appeal of the Revenue is less, then the monetary limit provided by the CBDT Circular No.9/2024 dated 17/09/2024 in Para 2 of the said circular as under: ITA No 1074 of 2024 ASR Agro Industries Page 3 of 5 4. The learned DR has submitted that the case of the assessee falls in the exception provided in Para 3.1 (a & b) of the CBDT Circular No.5/2024 dated, 15/03/2024 and therefore, the appeal of the Revenue should be decided on merits instead of on monetary limits. 5. On the other hand, the learned AR has submitted that the case of the assessee does not falls in the exception of Circular No.5/2024. 6. Since the Department has claimed that the present case falls in the exception provided in Para 3.1 and 3.2 of the CBDT Circular No.5/2024, therefore, the relevant para 3.1 of the said circular is reproduced for ready reference: 6. The Department has referred only sub-para (a) & (b) of Para 3.1, however, there is no issue involved in the case regarding ITA No 1074 of 2024 ASR Agro Industries Page 4 of 5 the provisions of the Act or rules or notification as held to be constitutionally invalid or any order, instruction, or circular of the CBDT or the Govt. has been held to be illegal for ultra vires. Therefore, these 2 clauses i.e. a & b are not attracted in the present case. The Assessing Officer has referred in para 2 of the assessment order as under: 7. Thus, the assessment was reopened by the Assessing Officer on the basis of the information received from the Commercial Tax Officer regarding the short payment of VAT/CST by certain parties including the assessees. Thus, the mere information received from the Commercial Tax Officer regarding short payment of VAT/CST would not constitute an information in respect of an offence allegedly to have been committed by the ITA No 1074 of 2024 ASR Agro Industries Page 5 of 5 assessee under the law. The short payment of VAT/ CST would not itself is an offence. The Assessing Officer himself has doubted about the genuineness of the payment. Hence, we are of the considered view that this case does not fall even in exception provided in sub-para (c) of the para 3.1 of the CBDT Circular No.5/2024 as reproduced above. Accordingly, when the tax effect in the appeal of the Revenue is below the monetary limit provided in Circular No.9/2024, then the appeal of the Revenue is not maintainable and liable to be dismissed. We order accordingly. 8. In the result, the appeal of the Revenue is dismissed. Order pronounced in the Open Court 21st February, 2025. Sd/- Sd/- (MANJUNATHA, G) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated, 21st February, 2025 Vinodan/sps Copy to: S.No Addresses 1 Income Tax Officer Ward 1 Aayakar Bhavan, Subhas Nagar, Nizamabad 503002 Telangana 2 ASR Agro Industries Sy. No.417A & 418 Akula Kondur Village, Nizamabad 503246 3 Pr. CIT – Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "