The ACIT, Circle-3(2), Ahmedabad V. M/s. Plastic Products Enggineering Co., Ahmedabad

ITA 1189/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6032 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 06-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KEYAR PATEL
• Keywords: Tax effect

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1189/AHD/2016 & CO NO. 72/AHD/2016 ( / ASSESSMENT YEAR : 2008-09) ACIT, CIRCLE-3(2), AHMEDABAD, ROOM NO. A-509, FIFTH FLOOR, PRATYAKSH KAR BHAVAN, B/H AHMEDABAD STOCK EXCHANGE, AMBAWADI, AHMEDABAD-380015 / VS. M/S. PLASTIC PRODUCT ENGINEERING CO., NEAR NAROL DISTRICT COURT, POST NAROL, AHMEDABAD-382405 ./ ./ PAN/GIR NO. : AACFP3903B ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI KEYAR PATEL, SR.DR / RESPONDENT BY : SMT. URVASHI SHODHAN, AR / DATE OF HEARING 06/02/2018 !'# / DATE OF PRONOUNCEMENT 13/02 /2018 $% / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-13, AHMEDABAD [CIT(A) IN SHORT] DATED 02/02/2016 RELEVANT TO ASSESSMENT YEAR (AY) 2008-09. ITA NO.1189/AHD /2016 ACIT VS. PLASTIC PRODUCT ENGINEERING CO. ASST.YEAR 2008-09 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA D AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOL DING THAT THE REJECTION OF BOOK RESULT U/S.145(3) IS NOT PROPER. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.27,48,423/- MADE ON ACCOUNT OF GROSS PROFIT. 3. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS BY NOT APPRECIATING THAT THE ASSESSEE FAILED TO PRODUCE ANY CORRESPONDENCE WITH THE SUPPLIERS TO PROVE THAT IT HAD RECEIVED SUB STANDARD MATERIAL AND THE SAME WAS REPLACED FREE OF COST WITHOUT RETURNING THE ORIGINAL MATERIALS. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER. 5. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX(A) MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID C IRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT E XCEED THE PRESCRIBED MONETARY LIMIT WHICH IS RS.10 LAKHS. IN THE INSTAN T CASE, THE TAX EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STAT ED TO BE LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIR ED TO BE DISMISSED IN LIMINE . ITA NO.1189/AHD /2016 ACIT VS. PLASTIC PRODUCT ENGINEERING CO. ASST.YEAR 2008-09 - 3 - 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPE AL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWIN G INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. 6. NOW WE TURN TO THE CROSS OBJECTION FILED ON BEHALF OF THE ASSESSEE IN THE REVENUE APPEAL. AT THE TIME OF HEARING THE L D. AUTHORISED REPRESENTATIVE FOR THE ASSESSEE COULD NOT PLACE ANY SERIOUS ARGUMENT TO PERSUADE US FOR INTERFERING WITH THE ORDER OF THE C IT(A). 7. IN THE RESULT, CROSS OBJECTION OF THE ASSESSEE IS D ISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 13 / 02/2018 SD/- SD/- (MAHAVIR PRASAD) ( PRADIP KUMAR K EDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 13/ 02/2018 MUKUL !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. & '( ) / CONCERNED CIT 4. ) ( ) / THE CIT(A)-13, AHMEDABAD 5. ,-. //'( , '(# , 12$&$ / DR, ITAT, AHMEDABAD 6. .34 5 / GUARD FILE. % & / BY ORDER, '/& () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 17.1.18