The ITO, Sabarkantha Ward-3, Sabarkantha V. Shri Jayantibhai Karsanbhai Patel, Sabarkantha

ITA 1/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7880 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 02-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P MAURYA
• Keywords: Tax effect
• Section: 144

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 01/AHD/2017 ( ASSESSMENT YEAR : 2008-09) THE INCOME-TAX OFFICER, SABARKANTHA WARD-3, HIMATNAGAR, DIST: SABARKANTHA - 383001 / VS. SHRI JAYANTIBHAI KARSANBHAI PATEL, AT & POST: JAMLA, TALUKA: HIMATNAGAR, DIST. SABARKANTHA - 383001 . / ./ PAN/GIR NO. : ALTPP8906C ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI R. P. MAURYA, SR. D.R. / RESPONDENT BY : NONE DATE OF HEARING 16/07/2018 !'# / DATE OF PRONOUNCEMENT 16/07/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-2, AHMEDABA D (CIT(A) IN SHORT), DATED 03.10.2016 ARISING IN THE ASSESSMENT ORDER DATED 16.12.2015 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 144 R.W.S. ITA NO. 01/AHD/17 [ITO VS. SHRI JAYANTIBHAI K. PATE L] A.Y. 2008-09 - 2 - 147 OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNIN G ASSESSMENT YEAR 2012-13. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS BY CONFIRMING RS.4,99,284/- AS AGAINST THE TOTAL DISALLOWANCE MADE BY AO OF RS. 31,14,757/- (DIESEL EXPENSES RS.24,77,365 INTEREST ON VEHICLE LOAN OF R S.1,61,136/- AND VEHICLE REPAIRING EXPENSES OF RS.4,76,256). 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS BY DELETING DISALLOWANCE U/S.41(1) OF THE ACT ON VEHICLE LOAN LIABILITY OF R S.7,23,444/-. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISIN G THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED IS SUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS A ND 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. 3 OF 2018. ACCORDINGLY, APPEA L OF THE REVENUE ITA NO. 01/AHD/17 [ITO VS. SHRI JAYANTIBHAI K. PATE L] A.Y. 2008-09 - 3 - IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWIN G INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (PRADI P KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 16/07/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 16/07/20 18