The DCIT, Circle-4(1)(2), Ahmedabad V. M/s. Veeda Clinical Research Pvt. Ltd., Ahmedabad

ITA 1054/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4096 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 01-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGDISH
• Assessee Lawyers: T P HEMANI
• Keywords: Depreciation; Tax effect
• Section: 143(3); 14A; 144C

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA. NO. 1054/AHD/2017 ( / ASSESSMENT YEAR : 2012-13) THE DCIT, CIRCLE- 4(1)(2) , AHMEDABAD. / VS. M/S. VEEDA CLINICAL RESEARCH PVT. LTD. SHIVALIK PLAZA A, NR. IIM, AMBAWADI, AHMEDABAD ./ ./ PAN/GIR NO. : AAC CC3 633Q ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI JAGDISH, CIT DR. / RESPONDENT BY : SHRI T.P. HEMANI, AR / DATE OF HEARING 06/03/2019 !'# / DATE OF PRONOUNCEMENT 13/03/2019 $%/ 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 COMMISSIONER OF IN COME TAX (APPEALS)-8, AHMEDABAD (CIT(A) IN SHORT), DATED 2 0.02.2017 ARISING IN THE ASSESSMENT ORDER DATED 02.03.2016 PA SSED BY THE ITA NO.1054/AHD/17 [DCIT VS.VEEDA CLINICAL RESEARCH PVT. LTD.] A.Y. 2012-13 - 2 ASSESSING OFFICER (AO) UNDER S. 144C R.W.S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) IN THE ASSESSMENT YEAR 2012 -13. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READ S AS UNDER:- 1. WHETHER THE LD. CIT(A) IS RIGHT IN LAW AND ON FACTS IN ALLOWING THE DEPRECIATION AT THE RATE OF 60% ON SOFTWARE BEING C USTOMIZED LICENSE PRODUCT UNDER CONSIDERATION INSTEAD OF AT THE RATE OF 25%. 2. WHETHER THE LD. CIT(A) IS RIGHT IN LAW AND ON FA CTS IN DELETING THE DISALLOWANCE OF RS. 21,58,292/- MADE ON ACCOUNT OF U/S 14A R.W.R. 8D OF THE ACT. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, ITA NO.1054/AHD/17 [DCIT VS.VEEDA CLINICAL RESEARCH PVT. LTD.] A.Y. 2012-13 - 3 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 RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 13/03/2019 TANMAY TRUE COPY !' #' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. $ / ASSESSEE 3. ) *+ , / CONCERNED CIT 4. ,- / CIT (A) 5. 012 33*+, *+#, 56$)$ / DR, ITAT, AHMEDABAD 6. 289 : / GUARD FILE. BY ORDER / $% , ;/ 5 *+#, 56$)$ < 1.DATE OF DICTATION ON 07.03.2019 AS PER LOW TA X EFFECT FORMAT 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 07.03.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 12.03.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 13.03.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 13.03.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 13.03.2019 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 THIS ORDER PRONOUNCED IN OPEN COURT ON 13/03/ 2019