The DY. CIT.,GNR Circle, Gandhinagar V. Gujarat Info Petro Ltd., Gandhinagar

ITA 1018/AHD/2014

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0687 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 24-03-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 08-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N SOPARKAR
• Keywords: Bad and doubtful debts; Tax effect
• Section: 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER ./I.T.A. NOS. 1018&1019/AHD/2014 ( / ASSESSMENT YEARS: 2009-10& 2010-11) DCIT GANDHINAGAR CIRCLE, 4 TH FLOOR, 14 TH BLOCK UDHYOG BHAVAN, SECTOR-11, GANDHINAGAR / VS. GUJARAT INFO PETRO LTD. 114, 1 ST FLOOR, IT TOWER NO-1, INFOCITY, NR. INDRODA CIRCLE, GANDHINAGAR-382011 ./ ./PAN/GIR NO. : AAB CG6 234 E ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VIDHYUT TRIVEDI, SR. DR / RESPONDENT BY: SHRI S. N. SOPARKAR, AR & SMT. URVASHI SODHAN & SHRI PARIN SHAH !' /DATE OF HEARING 10/06/2020 #$!' / DATE OF PRONOUNCEMENT 12/06/2020 %& /O R D E R PER MS. MADHUMITA ROY - JM: BOTH THE APPEALS FILED BY THE REVENUE FOR A.Y. 200 9-10 & 2010-11, ARISING OUT OF ORDER OF THE CIT(A), GANDHINAGAR, AHMEDABAD D ATED 09.01.2014, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX A CT, 1961; IN SHORT THE ACT. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE READ AS UNDER:- ITA NO. 1018/AHD/2014 (A.Y. 2009-10):- 1. THE LEARNED CIT(APPEALS) HAS ERRED IN LAW AND ON FACTS IN ALLOWING THE CLAIM OF DEDUCTION U/S. 80IA(4) OF THE ACT OF R S. 84,14,362/-. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. ITA NOS. 1018&1019/AHD/2014 [DCIT VS. GUJARAT INFO PETRO LTD.] A.Y. 2009-10 & 2010-11 2 ITA NO. 1019/AHD/2014(A.Y. 2010-11):- 1. THE LEARNED CIT(APPEALS) HAS ERRED IN LAW AND ON FACTS IN ALLOWING THE CLAIM OF DEDUCTION U/S. 80IA(4) OF THE ACT OF R S. 84,14,362/-. 2. THE LEARNED CIT(APPEALS) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE DISALLOWANCE MADE BY THE AO ON ACCOUNT OF PROVISION FOR BAD DEBTS FOR RS. 33,75,607/-. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 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 RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG 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.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE COMBINED RESULT, THE APPEALS OF THE REVEN UE ARE DISMISSED. SD/- SD/- (WASEEM AHMED) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 12/06/2020 TANMAY, SR. PS TRUE COPY RUE TRUE COPY THIS ORDER PRONOUNCED IN OPEN COURT ON 12/06/2020 ITA NOS. 1018&1019/AHD/2014 [DCIT VS. GUJARAT INFO PETRO LTD.] A.Y. 2009-10 & 2010-11 3 / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. + ,! -! / CONCERNED CIT 4. -!- / CIT (A) 5. 123 ! ,, ' ,, 56%+% / DR, ITAT, AHMEDABAD 6. 38 9 / GUARD FILE. BY ORDER / %& , :/5 ' ,,56%+% < 1.DATE OF DICTATION ON 12.06.2020 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 12.06.2020 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. .06.2020 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .06.2020 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 12.06.2020 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 15.06.2020 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER