The ACIT- Circle-I(2), Baroda V. M/s. Enviro Infrastructure Co.Ltd., Baroda

ITA 1070/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8639 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 11-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Tax effect
• Section: 14A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.1070/AHD/2014 / ASSTT. YEAR: 2007-2008 THE ACIT, CIR.1(2) BARODA. VS. M/S.ENVIRO INFRASTRUCTURE CO. LTD. MEZZANINE FLOOR ABS TOWER, OLD PADRA ROAD BARODA. PAN : AAACE 4021 C / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI V.K. SINGH, SR.DR ASSESSEE BY : NONE ! / DATE OF HEARING : 26/07/2017 '#$ ! / DATE OF PRONOUNCEMENT: 08/09/2017 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL AGAINST THE ORDER OF LD.CIT(A) I, BARODA DATED 24.1.2014 PASSED FOR THE ASSTT.YEAR 200 7-08. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE T IME OF HEARING. THEREFORE, WE PROCEED TO DECIDE THE APPEA L EX PARTE QUA THE ASSESSEE, AFTER HEARING THE LD.DR AND CONSIDERI NG THE MATERIAL AVAILABLE ON RECORD. ITA NO.1070/AHD/2014 2 3. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD .CIT(A) IN ALLOWING THE CLAIM OF THE ASSESSEE AS SET OUT IN TH E GROUNDS OF APPEAL. 4. WE NOTICED FROM THE ASSESSMENT ORDER THAT THE AO HAS COMPUTED TOTAL INCOME OF THE ASSESSEE AFTER MAKING CERTAIN ADDITIONS, AS UNDER: 6. SUBJECT TO ABOVE REMARKS AND AFFER DISCUSSION A ND ALSO FROM THE DETAILS MADE AVAILABLE, THE TOTAL INCOME O F THE ASSESSEE COMPANY IS COMPUTED AS UNDER: TOTAL INCOME AS PER COMPUTATION OF INCOME RS.76,72,064/ - ADD: AS DISCUSSED ABOVE. I) MEMBERSHIP FEES (AS DISCUSSED IN PARA 4) RS.18,97,500/ - II) DISALLOWANCE U/S.14A (AS DISCUSSED IN PARA-5) RS.36,150/ - TOTAL INCOME RS.96,05,710/- 5. A PERUSAL OF THE ABOVE COMPUTATION IT REVEALED T HAT THE LD.AO HAS MADE TWO ADDITIONS VIZ. (I) MEMBERSHIP FE ES OF RS.18,97,500/- AND DISALLOWANCE UNDER SECTION 14A O F THE ACT OF RS.36,150/-. TAX EFFECT ON THESE TWO AMOUNTS FALL S BELOW THRESHOLD LIMIT OF RS.10.00 LAKHS PRESCRIBED BY THE CBDT IN RECENT INSTRUCTIONS FOR FILING OF APPEAL BEFORE THE TRIBUN AL. WHEN WE CONFRONTED THE LD.DR ABOUT THE TAX EFFECT ON THE AD DITIONS MADE BY THE AO AND ADMISSIBILITY OF APPEAL BEFORE THE TR IBUNAL IN VIEW OF THE CBDT INSTRUCTIONS, RESTRICTING THE FILING OF THE APPEAL BEFORE THE TRIBUNAL, THE LD.DR WAS UNABLE TO DISPUTE THE S AME, RATHER LEFT TO THE TRIBUNAL TO DECIDE THE APPEAL APPROPRIATELY. 6. WE HAVE HEARD LD.DR AND GONE THROUGH THE RECORD AND THE IMPUGNED ORDERS. WE FIND THAT APPEAL OF THE REVENU E, WHICH IS ITA NO.1070/AHD/2014 3 FILED ON 11.4.2014 IS HIT BY RECENT CBDT INSTRUCTION NO.21 OF 2015 DATED 10.12.2015 WHEREBY THE BOARD HAS PROHIBITED IT S SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL B EFORE THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS TH AN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RET ROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APP LICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASE, TAX EFF ECT AS PER THE COMPUTATION OF TOTAL INCOME MADE BY THE AO IS LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPEAL DESERVES TO B E DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF THE ABOVE CBDT INSTRUCTION. IT IS DISMISSED. 7. 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 O R IT FALLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 8 TH SEPTEMBER, 2017. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 08/09/2017