The ITO, Ward-2, Anand V. The Karamsad Nagrik Co.Op.Credit So.Ltd., Anand

ITA 1139/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9204 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 23-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP KUMAR MAJUMDAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHM EDABAD , (BEFORE SHRI ANIL CHATURVEDI, A.M. & SHRI S. S. GOD ARA, J.M.) ( , !' !#!#$% , &' ) ITA NO: 1139/AHD/2013 (ASSESSMENT YEAR: 2009-10) INCOME-TAX OFFICER, WARD-2, ANAND VS. THE KARAMSAD NAGRIK CO- OP. CREDIT SOCIETY LTD., OPP. BAPESHWAR MAHADEV, NR. LIBRARY, KARAMSAD, TAL. ANAND PAN: AAAAT4728K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRADEEP KUMAR MAJUMDAR, SR. D.R. RESPONDENT BY : NONE DATE OF HEARING : 15-03-201 6 DATE OF PRONOUNCEMENT : 17-03-2016 ( )/ ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-IV, BARODA, DATED 08.02.2013 FOR A.Y. 2009-10. ITA NO .113 9/AHD/2013 . A.Y. 2009- 10 2 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED CIT(A) ERRED IN LAW, IN DIRECTING TO TAX INTEREST RECEIVED FROM FIX ED DEPOSITS WITH COMMERCIAL BANKS AS PROFIT AND GAINS OF BUSINESS ELIGIBLE FOR DEDUCTI ON U/S.80P AGAINST INCOME FROM OTHER SOURCES NOT ELIGIBLE FOR DEDUCTION U/S.80P AS HELD BY THE AO WHICH GETS SUPPORT FROM THE DECISION OF THE SUPREME COURT IN THE CASE OF TOTGAR S CO-OPERATIVE SALE SOCIETY LTD., REPORTED IN 188 TAXMAN 282 (SC) WHEREIN IT HAS BEEN HELD THAT ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION U/S.80P(2)(A)(I) WHERE SUCH INTEREST WAS EARNED ON SURPLUS FUNDS INVESTED IN SHORT TERM DEPOSITS. 3. BEFORE US, NONE APPEARED ON BEHALF OF ASSESSEE B UT AN ADJOURNMENT APPLICATION HAS BEEN FILED. HOWEVER, THE LD. D.R. FAIRLY ADMITTED THAT THE TAX EFFECT ON THE IMPUGNED ADDITIONS IS LESS THAN THE LIMIT PR ESCRIBED BY THE CBDT CIRCULAR OF 10.12.2015 BEARING NO. 21 OF 2015. 4. WE HAVE HEARD THE LD. D.R. AND PERUSED THE MATER IAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, WE FIN D THAT REVENUE IS AGGRIEVED BY THE ADDITION OF RS.27,87,817/- THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES ( CBDT) DATED 10.12.2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS AR E TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTH ER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN TH E PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON R ECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE AR E OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESA ID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL ITA NO .113 9/AHD/2013 . A.Y. 2009- 10 3 IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. I N SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINIO N ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 17-03- 2016. SD/- SD/- (S. S. GODARA) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED. 17/03/2016 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD