The DCIT, Circle-8, Ahmedabad V. Shanti Exports Pvt.Ltd., Ahmedabad

ITA 1185/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1282 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 14-06-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 29-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA
• Keywords: Audit objection; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 1185 /AHD/201 3 & CO NO. 149 /AHD/2013 / ASSESSMENT YEAR : 2009 - 10 D CIT, CIRCLE - 8 , AHMEDABAD VS M/S. SHANTI EXPORTS PVT LTD, 2 ND FLOOR, CHIRIPAL HOUSE, OPP. ASOPALAV PARTY PLOT, SATELLITE, AHMEDABAD - 380015 PAN : AAFCS 0 472 C / (APPELLANT) / (RESPONDENT) & CROSS - OBJECTOR REVENUE BY : SHRI K MADHUSUDAN, SR DR ASSESSEE BY : SHRI P M MEHTA, AR / DATE OF HEARING : 14 / 0 6 /201 6 / DATE OF PRONOUNCEMENT: 14 / 06 /201 6 / O R D E R THIS APPEAL BY THE REVENUE AND THE CROSS - OBJECTION THEREOF FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME - TAX (APPEALS) - XIV , AHMEDABAD DATED 27 .0 2 .201 3 FOR ASSESSMENT YEAR 200 9 - 10 . 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL: - 1 ) THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF EXPENDITURE AMOUNTING TO RS.23,22,035/ - MADE U/S 14A OF THE ACT, R.W.S. 8D BY RELYING ON DECISIONS DELIVERED W.R.T. SECTION 36(1)(III) OF THE ACT. 2 ) ON THE FACTS AND CIRC UMSTANCES OF THE CASE AND IN LAW, THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3 ) IT IS , THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3 . BEFORE ME , AT THE OUTSET, LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT HE IS NOT PRESSING THE CROSS - OBJECTION; HENCE THE CROSS - OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS NOT PRESSED. ITA NO. 1185/AHD/2013 & CO NO. 149/AHD/ 2013 DCIT VS. SHANTI EXPORTS PVT LTD AY : 2009 - 10 2 4 . WITH RESPECT TO REVENUES PRESENT APPEAL, THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE SAME NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. HE HAS ALSO SUBMITTED THAT IN THE PRESE NT CASE THE TAX EFFECT IS RS. 7,17,509 / - WHICH IS BELOW THE PRESCRIBED LIMIT OF RS.10 LACS AND HE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY T HE AFORESAID CBDT CIRCULAR. 5 . I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. I FIND THAT PRIMA - FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007 - ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME - TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS , THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PRO VIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELA TES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. I FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS. 10 LACS . THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 6 . IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS - OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 1 4 T H JUNE , 201 6 AT AHMEDABAD. SD/ - R.P. TOLANI ( JUDICIAL MEMBER ) AHMEDABAD; DATED 1 4 / 06 /201 6 *BIJU T. ITA NO. 1185/AHD/2013 & CO NO. 149/AHD/ 2013 DCIT VS. SHANTI EXPORTS PVT LTD AY : 2009 - 10 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD