Deputy Commissioner of Income-tax, Nashik V. M/s. Saptshrungi Steel Rolling Mills Pvt.Ltd, Nashik

ITA 1127/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2166 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 05-05-2017
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO .1127/PUN/2017 / ASSESSMENT YEAR : 2013 - 14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2, NASHIK. ....... / APPELLANT / V/S. M/S. SAPTSHRUNGI STEEL ROLLING MILLS PVT. LTD. 22, KHARBANDA PARK, OPP. DWARKA CIRCLE, NASHIK - 422 011. PAN : AAECS0139F / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : SHRI UODAL RAJ SINGH / DATE OF HEARING : 13 - 08 - 2019 / DATE OF PRONOUNCEMENT : 21 - 0 8 - 2019 / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2, NASHIK DATED 28 - 02 - 2017 FOR THE ASSESSMENT YEAR 201 3 - 14. 2. SHRI UODAL RAJ SINGH REPRESENTING THE DEPARTMENT FAIRLY ADMITTED T HAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS. 50 2 ITA NO . 1127 /PUN/201 7 , A.Y. 2013 - 14 LAKHS. THE LD. DR FURNISHED CALCULATION OF TAX EFFECT INVOLVED IN THE APPEAL. 3. WE HAVE HEARD THE SUBMISSIONS OF LD. DR AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER OF RS .36,55,509/ - ON ACCOUNT OF DIFFERENCE IN STOCK OF RAW MATERIAL AND ALLOWING SET OFF OF CURRENT BUSINESS LOSS AGAINST A DDITIONS U/S. 68, 69, 69A OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). AS PER THE TAX EFFECT CALCULATIONS FURNISHED BY THE DR THE TAX EFFECT INVOLVED IN THE APPEAL IS ( RS.12,27,540 ). ADMITTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO. 17/2019, DATED 08 - 08 - 2019 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08 - 08 - 2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO. 3 OF 2018 DAT ED 11 - 07 - 2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPR A) THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 4. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPE AL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AMENDMENT DATED 20 - 08 - 2018. 3 ITA NO . 1127 /PUN/201 7 , A.Y. 2013 - 14 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 21 ST DAY OF AUGUST, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 21 ST AUGUST, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 2, NASHIK. 4. THE PR. COMMISSIONER OF INCOME TAX - 2, NASHIK. 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE