Deputy Commissioner of Income-tax, Pune V. M/s. Alcob India Pvt.Ltd, Pune

ITA 1115/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8668 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 05-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRI
• Assessee Lawyers: UMESH PATWARDHAN
• Keywords: Tax effect
• Section: 143(3); 148

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.1115/PUN/2017 / ASSESSMENT YEAR : 2007-08 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), PUNE. . / APPELLANT V/S M/S. ALCOB INDIA PVT. LIMITED (M/S. ALCOB SYSTEMS PVT. LTD.,), SAI GAURAV, JAN MOHAMMAD STREET, NEAR BABAJAN CHOWK, CAMP, PUNE 411 015. PAN : AAECA8239L. . / RESPONDENT ASSESSEE BY : SHRI UMESH PATWARDHAN. REVENUE BY : SHRI PANKAJ GARG PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (A) PUNE 1 DATED 16.02 .2017 FOR A.Y. 2007-08. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS A COMPANY, WHO FILED ITS ORIGINAL RETURN OF INC OME FOR A.Y. 2007-08 ON 22.10.2007 DECLARING TOTAL INCOME OF RS.28,72,860/-. THE CASE WAS SELECTED FOR SCRUTINY AND A SSESSMENT WAS FRAMED U/S 143(3) OF THE ACT DT.30.11.2009 ACCEPTING T HE RETURN / DATE OF HEARING : 11.07.2019 / DATE OF PRONOUNCEMENT: 12 .07.2019 2 OF INCOME FILED BY THE ASSESSEE. THEREAFTER, THE CASE WAS RE-OPENED BY ISSUING NOTICE U/S 148 OF THE ACT ON 30.03.2012 AND CONS EQUENTLY ASSESSMENT WAS FRAMED U/S 143(3) R.W.S. 147 OF THE ACT V IDE ORDER DATED 15.03.2013 AND THE TOTAL TAXABLE INCOME WAS DETERMINED AT RS. 1,51,60,632/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARR IED THE MATTER BEFORE LD.CIT(A) WHO VIDE ORDER DT.16.02.2017 (IN APP EAL NO.CIT(A), PUNE-1/10089/2013-14) GRANTED PARTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), REVENUE IS NOW IN APPEAL BEFORE US AND HAS R AISED THE FOLLOWING GROUNDS : 1. THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO LAW AND ON FACTS AND IN CIRCUMSTANCES O F THE CASE. 2. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ER RED ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW IN ACCEPTING RECONCILIATION ON SALE OF RS.39,26,228/- WHICH WAS NOT SUPPORTED BY THE EVIDENCE AND PROPER DOCUMENT. 3. FOR THESE AND SUCH OTHER GROUNDS AS MAY BE URGED AT THE TIME OF HEARING, THE ORDER OF THE LD. COMMISSIONER OF INCOM E TAX (APPEALS) MAY BE VACATED I AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. BEFORE US, AT THE OUTSET, LD.A.R. SUBMITTED THAT THE APP EAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFEC T AND THEREFORE, THE APPEAL OF THE REVENUE BE DISMISSED. LD.D.R . DID NOT OBJECT TO THE AFORESAID CONTENTION MADE BY THE LD.A.R. B UT HOWEVER SUPPORTED THE ORDER OF AO. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RA ISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE RECENT ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 11.07.2018 (CIRCULAR NO. 3 OF 2018), NO DEPARTMENT APPEALS ARE TO BE FILED AGAI NST RELIEF 3 GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST, EXCEEDS RS.20 LAKHS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY T O THE PENDING APPEALS ALSO. IN THE PRESENT CASE, IT IS AN UNDISPUTED FA CT THAT ON THE ADDITION WHICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN RS.2 0 LAKHS. IN THE ABSENCE OF ANY MATERIAL PLACED ON RECORD BY THE REV ENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COV ERED BY EXCEPTIONS PROVIDED IN PARA 10 OF THE AFORESAID CBDT CIRC ULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INST RUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRES ENT APPEAL OF THE DEPARTMENT. WE THEREFORE HOLD THE PRESENT APPEA L OF REVENUE TO BE NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT AND AC CORDINGLY DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPIN ION ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. THUS, THE GROUNDS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON 12 TH DAY OF JULY, 2019. SD/- SD/- ( VIKAS AWASTHY ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ! / ACCOUNTANT MEMBER PUNE; DATED : 12 TH JULY, 2019. YAMINI 4 '#$%&'('% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-1, PUNE. PR. CIT-1, PUNE. !,# ! , / DR, ITAT, B PUNE; %&'/ GUARD FILE. / BY ORDER // TRUE COPY // ( )*+ , / SR. PRIVATE SECRETARY # ! , / ITAT, PUNE.