ITO, Ward-2(2), Bikaner V. M/s. Manda Motors Pvt. Ltd. , Bikaner

ITA 100/JODH/2018

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-2(2), Bikaner against M/s Manda Motors Pvt. Ltd., concerning an order by the Learned Commissioner of Income Tax, Bikaner. The appeal contested the deletion of an addition of Rs. 1,08,61,500 made on account of preference share premium, which was treated as unexplained bogus credit under section 68 of the Income Tax Act, 1961. However, during the hearing, the Department's representative withdrew the appeal, citing the low tax effect, which is below the threshold prescribed for filing appeals as per the relevant circulars.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122795 (ITAT-JODHPUR)
• Duration Of Justice: 5 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 05-07-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 18-02-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL SARDA
• Keywords: Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM ITA Nos. 100/Jodh/2018 (ASSESSMENT YEAR- 2014-15) Income Tax officer, Ward-2(2), Bikaner. Vs M/s Manda Motors Pvt. Ltd. N.H.-11, Jaipur Road, Bikaner. (Appellant) (Respondent) PAN NO. AAGCM 6051N J (Virtual hearing) Assessee By Shri Anil Sarda-C.A. Revenue By Shri S.M. Joshi, JCIT-DR Date of hearing 06/07/2023 Date of Pronouncement 07/07/2023 O R D E R PER: Dr. S. Seethalakshmi, JM The Revenue has filed an appeal against the order of the Learned Commissioner of Income Tax, Bikaner [herein after “Ld.CIT(A)”] dated 30.10.2017 for the assessment year 2014-15. 2. The Revenue has raised the following grounds of appeal:- “1. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 1,08,61,500/- made on account of being preference share premium as unexplained bogus credit u/s 68 of the IT Act, 1961, specially when the assessee company had incurred loss during 2 ITA Nos. 100/Jodh/2018 ITO Vs. M/s Manda Motors Pvt. Ltd. the year under considering, the balance of share premium cannot be included in shareholders fund which calculating valuation of share and balance of share premium cannot be considered as part of shareholder funds?” 3. During the course of hearing, the ld. DR submitted to withdraw the appeal since it is falling under low tax effect. 4. On the other hand ld. AR supported the order of the ld. CIT(A). 5. The Bench heard both the parties during the virtual hearing and noted that this appeal as per ld. DR submission falls under the low tax effect which is not maintainable. In this view of the matter the appeal of the Department is dismissed as withdrawn. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 07/07/2023. Sd/- Sd/- (RATHOD KAMLESH JAYANTBHAI) (DR. S. SEETHALAKSHMI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 07/07/2023 *S antosh Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 3 ITA Nos. 100/Jodh/2018 ITO Vs. M/s Manda Motors Pvt. Ltd. 5. The DR 6. Guard File Assistant Registrar Jodhpur Bench