The Addl. CIT, Range-1, Baroda V. Aerzen Machines (India) Pvt. Ltd., Vadodara

ITA 105/AHD/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0427 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 15-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: P B PARMAR
• Keywords: Tax effect
• Section: 143(3); 268A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER IT(TP)A NO.105/AHD/2016 / ASSTT.YEAR : 2011-12 DCIT, CIR.1(1)(1) VADODARA. VS. AERZEN MACHNES (INDIA) P.LTD. E/115/116, GIDC MAMJUSAR SAVLI VADODARA 391 775. ( APPLICANT ) ( RESPONENT ) REVENUE BY : SONIA KUMAR, SR.DR ASSESSEE BY : SHRI P.B. PARMAR, AR / DATE OF HEARING : 28/08/2019 / DATE OF PRONOUNCEMENT: 11/09/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)- L, VADODARA DATED 23.10.2015 PASSED FOR THE ASSESSM ENT YEAR 2011-12. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE I D.CIT(A) IN NOT UPHOLDING THE ORDER OF THE ASSESSING OFFICER PASSED UNDER SECTION 143(3) R.W.S. 92C(4) OF THE INCOME TAX ACT, 1961. 3. THE ID.COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT DISPUTED ADDITION IS RS.62,70,202/- WHICH WAS DUE TO UPWARD REVISION OF ALP UNDER SECTION 92C(3) OF THE ACT BY THE AO. THIS ADDITION HAS BEEN DELETED BY THE ID.CIT(A). TAX EFFECT ON THE DISPUTED ADDITION WOUL D BE LESS THAN RS.50 LAKHS. HE SUBMITTED THAT BY VIRTUE OF RECENT CBDT C IRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, TH E PRESENT APPEAL OF THE IT(TP)A NO.105/AHD/2016 2 REVENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. PER CONTRA, THE ID.DR DID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCUL AR AND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL OF THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CITED (S UPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE DISPUTED ADDI TION IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBD T CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, W E ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DI SMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX; EFFECT IS MORE, OR REVENUE'S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF THE RE VENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 11 TH SEPTEMBER, 2019 AT AHMEDABAD. SD/ - (AMARJIT SINGH) ACCOUNTANT MEMBER SD/ - (RAJPAL YADAV) JUDICIAL MEMBER