Joint Commissioner of Income-tax (OSD), Circle -7, Pune V. Tranter India Pvt.Ltd, Pune

ITA 09/PUN/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1587 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 03-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHABANA PARVEEN
• Assessee Lawyers: MANOJ SOLANKI
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 09 /PUN/201 8 / ASSESSMENT YEAR : 20 14 - 15 JT. COMMISSIONER OF INCOME TAX (OSD), CIRCLE 7, PUNE ....... / APPELLANT / V/S. TRANTER INDIA PVT. LTD., GAT NO. 127 & 128, DINGRAJWADI, TAL. - SHIRUR, OFF PUNE NAGAR ROAD, PUNE 412208 PAN : AAFCA4598P / RESPONDENT ASSESSEE BY : SHRI MANOJ SOLANKI REVENUE BY : MS. SHABANA PARVEEN / DATE OF HEARING : 2 8 - 08 - 2019 / DATE OF PRONOUNCEMENT : 03 - 0 9 - 2019 / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 5, PUNE DATED 11 - 09 - 2017 FOR THE ASSESSMENT YEAR 20 14 - 15. 2 ITA NO . 09/PUN/2018, A.Y. 2014 - 15 2. SHRI MANOJ SOLANKI APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO. 17/2019, DATED 08 - 08 - 2019. THE LD. AR FURNISHED WORKING OF TAX EFFECT IN VOLVED IN THE APPEAL. ACCORDING TO THE WORKING, TAX EFFECT IS RS. 34,04,777/ - INCLUDING SURCHARGE AND CESS. THUS, THE TAX EFFECT ON THE ADDITION S DELETED BY COMMISSIONER OF INCOME TAX (APPEALS) IS LESS THAN RS.50 LAKHS. 3. MS. SHABANA PARVEEN REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS. 50 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETING THE ADDITION S MADE BY THE ASSESSING OFFICER AT RS.1,00,31,606/ - ON ACCOUNT OF DEPRECIATION ON GOODWILL. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO. 17/2019, DATED 08 - 08 - 2019 FOR FILING OF AP PEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08 - 08 - 2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO. 3 OF 2018 DATED 11 - 07 - 2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA) THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 3 ITA NO . 09/PUN/2018, A.Y. 2014 - 15 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AMENDMENT DATED 20 - 08 - 2018. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON TUESDAY, THE 03 RD DAY OF SEPTEMBER, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 03 RD SEPTEMBER, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 5, PUNE. 4. THE COMMISSIONER OF INCOME TAX - 4, PUNE. 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE