Assistant Commissioner of Income-tax, V. Sahkarmharshi Bhausaheb Thorat Sahkari Sakhar Karkhana Ltd., Ahmednagar

ITA 1167/PUN/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1538 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 20-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S B PRASAD
• Assessee Lawyers: K SRINIVASAN
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1167/PUN/2015 / ASSESSMENT YEAR : 2011-12 THE ASST. COMMISSIONER OF INCOME TAX, AHMEDNAGAR CIRCLE, AHMEDNAGAR. . / APPELLANT V/S SAHKARMHARSHI BHAUSAHEB THORAT SAHKARI SAKHAR KARKHANA LTD., A/P. AMRUTNAGAR, TAL. SANGAMMER, DIST. AHMEDNAGAR, PIN 422 608. PAN : AAAAS3893G. . / RESPONDENT ASSESSEE BY : SHRI K. SRINIVASAN. REVENUE BY : SHRI S.B. PRASAD, C.I.T. PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF TH E ORDER OF COMMISSIONER OF INCOME TAX (A) 2, PUNE DATED 30.01.2015 FOR THE ASSESSMENT YEAR 2011-12. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS A CO-OPERATIVE SOCIETY STATED TO BE ENGAGE D IN THE BUSINESS OF MANUFACTURING AND SALE OF SUGAR AND ITS BY-PRO DUCTS. ASSESSEE ELECTRONICALLY FILED ITS RETURN OF INCOME FOR A.Y. 2 011-12 / DATE OF HEARING : 19.03.2019 / DATE OF PRONOUNCEMENT: 19.03.2019 2 ON 29.09.2011 DECLARING TOTAL INCOME OF RS.5,04,25,525/-. THE CASE WAS SELECTED FOR SCRUTINY AND THEREAFTER ASSESSMEN T WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DATED 09.12.2013 AND THE TOTAL INCOME WAS DETERMINED AT RS.45,75,34,548/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.C IT(A), WHO VIDE ORDER DT.30.01.2015 (IN APPEAL NO.PN/CIT(A)-2/ACIT/ CIR- AHMEDNAGAR/AN/127/2014-15) 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 COMMISSIONER OF INCOME TAX (AP PEALS) IS CONTRARY TO LAW AND TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS ) GROSSLY ERRED IN DELETING THE ADDITION OF RS.52,15,303/- ON ACCOU NT OF AMOUNT COLLECTED TOWARDS THE AREA DEVELOPMENT FUND TREATED AS INCOME OF THE ASSESSEE BY THE ASSESSING OFFICER AS THE FUND W AS NOT IMPRESSED WITH A SPECIFIC LEGAL OBLIGATION TO BE SP ENT FOR SPECIFIED PURPOSES. 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 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. D ID NOT OBJECT TO THE AFORESAID CONTENTION MADE BY THE LD.A.R. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. A S PER THE RECENT ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CB DT) DATED 11.07.2018 (CIRCULAR NO.3 OF 2018), NO DEPARTMENT A PPEALS 3 ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTER EST, EXCEEDS RS.20 LAKHS AND IT FURTHER STATES THAT THE INST RUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS ALSO. IN T HE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS.20 LAKHS AND IN T HE ABSENCE OF ANY MATERIAL PLACED ON RECORD BY THE REVENUE 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 INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICAB LE TO THE PRESENT APPEAL OF THE DEPARTMENT. WE THEREFORE HOLD THE PRESENT APPEAL OF REVENUE TO BE NOT MAINTAINABLE ON AC COUNT OF LOW TAX EFFECT AND ACCORDINGLY DISMISS THE APPEAL OF REVENUE W ITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT IN VOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE , IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APP EAL. THUS, THE GROUNDS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 19 TH DAY OF MARCH, 2019. SD/- SD/- ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ! / ACCOUNTANT MEMBER PUNE; DATED : 19 TH MARCH, 2019. YAMINI 4 '#$%&'('% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4 5. 6. THE CIT(A)-2, PUNE. THE CIT-1, PUNE. !,# ! , / DR, ITAT, A PUNE; &'(/ GUARD FILE. / BY ORDER // TRUE COPY // ) *+, - / SR. PRIVATE SECRETARY # ! , / ITAT, PUNE.