The DCIT, Circle-8, Ahmedabad V. Shanti Exports Pvt.Ltd., Ahmedabad

ITA 1021/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8897 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-03-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 12-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA
• Keywords: Retrospective amendment; Tax effect
• Section: 14A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.1021/AHD/2013 WITH CO NO.146/AHD/2013 / ASSTT. YEAR: 2008-2009 DCIT, CIR.8 AHMEDABAD. VS. M/S.SHANTI EXPORTS P.LTD. 2 ND FLOOR, CHIRPAL HOUSE OPP: ASOPALAV PARTY PLOT SATELLITE AHMEDABAD PAN : AALCS 7886 G / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI K. MADHUSUDAN, SR.DR ASSESSEE BY : SHRI P.M. MEHTA, AR ! / DATE OF HEARING : 16/03/2017 '#$ ! / DATE OF PRONOUNCEMENT: /03/2017 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF THE LD.CIT(A)-XIV, AHMEDABAD DATED 8.2.2013 PASSED FOR THE ASSTT.YEAR 2008-09. ON RECEIPT OF NOTICE ON THE REVENUES AP PEAL, THE ASSESSEE FILED CROSS OBJECTION BEARING NO.146/AHD/2013. ITA NO.2477/AHD/2013 2 2. REVENUE IS AGGRIEVED BY THE ACTION OF THE LD.CIT (A) IN DELETING THE DISALLOWANCE OF RS.17,18,715/- OUT OF TOTAL DISALLO WANCE OF RS.18,53,478/- MADE UNDER SECTION 14A OF THE ACT. 3. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITS THAT APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW O F LATEST CBDT INSTRUCTION NO.21 OF 2015 DATED 10.12.2015 WHEREBY THE BOARD HAS RESTRICTED DEPARTMENT NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS. HE FURTHER SUBMITS TH AT THIS INSTRUCTION IS RETROSPECTIVE IN NATURE, THEREFORE APPLICABLE TO AL L CASES PENDING BEFORE THE TRIBUNAL ALSO. THE LD.COUNSEL FOR THE ASSESSEE FILED A NOTE SHOWING THAT TAX EFFECT IS BELOW STATUTORY LIMIT PRESCRIBED BY THE CBDT. CALCULATION SHEET READS AS UNDER: ADDITION DISPUTED BY THE DEPARTMENT: I) DISALLOWANCE OF EXPENSES U/S.14A R.W.R. 8D RS.17,18,715/- II) TAX ON DISPUTED ADDITIONS (BEING RS. 5,31,083/- LESS THAN RS.10,00,000/- 4. THE LD.DR, HOWEVER, DID NOT CONTEST THIS SUBMISS ION OF THE LD.COUNSEL FOR THE ASSESSEE AND/OR APPLICABILITY OR OTHERWISE MERIT OF THE CBDT CIRCULAR CITED SUPRA. 5. AFTER GOING THROUGH RECORD WE FIND THAT REVENUE HAS FILED APPEAL BEFORE THE TRIBUNAL ON 12.4.2013. AS PER THE LATEST CBDT CIRCULAR NO.21/2015 DATED 10.12.2015 PROHIBITS FILING OF APP EAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS. ADM ITTEDLY, TAX ON EFFECT ON THE IMPUGNED ADDITION OF RS.17,18,715/- IS RS.10 LAKHS. FURTHER, THE ABOVE CIRCULAR HAS RETROSPECTIVE EFFECT, AND THEREF ORE, APPEALS OF THE REVENUE PENDING AS ON THE DATE AND FALLING WITHIN T HE MONETARY LIMIT ITA NO.2477/AHD/2013 3 ARE ALSO COVERED BY THE CIRCULAR AND THEREFORE PRES ENT APPEAL IS NOT MAINTAINABLE. 6. IT IS FURTHER OBSERVED THAT ON RE-VERIFICATION A T THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 7. THE LD.COUNSEL FOR THE ASSESSEE DOES NOT PRESS I TS CO FOR ADJUDICATION, HENCE, THE SAME IS DISMISSED. 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D HAVING LOW TAX EFFECT, AND CO OF THE ASSESSEE IS DISMISSED, AS NOT PRESSED. ORDER PRONOUNCED IN THE COURT ON 20 TH MARCH, 2017. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER