ACIT, Circle, Patiala V. M/s KGC Motors, Patiala

ITA 1266/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2023 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 04-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A CHANDIGARH !, ' # , $ % & ' ( , )* # BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 1266/CHD/2018 ASSESSMENT YEAR. : 2014-15 THE ACIT, CIRCLE , PATIALA. VS M/S KGM MOTORS, SANOUR ROAD, PATIALA. PAN /TAN NO: AALFK2269E APPELLANT RESPONDENT REVENUE BY : SMT. CHANDERKANTA, SR.DR !' ASSESSEE BY : SHRI VIBHOR GARG, CA # $'% DATE OF HEARING : 26.08.2019 &'()'% D ATE OF PRONOUNCEMENT : 06.09.2019 )-/ ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A SSAILING THE CORRECTNESS OF THE ORDER DATED 09/07/2018 OF CATIA PATIALA PERT AINING TO 2014 10 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A), PATIALA IS LEGALLY CORRECT IN DELETING THE ADDITION OF RS.77,22,742/- ON ACCOUNT OF DISALLOWANCE OF PENALTY EXPENSES WHICH WAS A CONTINGENT LIABILITY. 2. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A), PATIALA IS LEGALLY CORRECT IN DELETING THE ADDITION OF RS . 4, 18,000/- ON ACCOUNT OF DISALLOWANCE OF CERTAIN EXPENSES DEBITED TO PROFIT & LOSS ACCOUNT WITH RESPECT TO WH ICH ASSESSEE COULD NOT PRODUCE THE BILLS. 3. IT IS PRAYED THAT THE ORDER OF LD. C1T (A), PATIALA BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD AND FINALLY DISPOSED OF. 2. AT THE TIME OF HEARING LD. AR APPEARING ON BEHAL F THE ASSESSEE SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS. 25.15 LACS ODD. RELYING UPON THE CALC ULATION SHEET ITA 1266 /CHD/2018 A.Y. 2014-15 PAGE 2 OF 2 FILED IN THE COURT IT WAS HIS PRAYER THAT THE REVEN UES APPEAL IS NOT MAINTAINABLE. 3. THE LD. SR. DR MS. CHANDRAKANTA ON GOING THROUGH THE RECORD AGREED THAT TAX EFFECT INVOLVED IS MUCH BELO W THE LIMIT OF 50 LACS. THE POSITION OF LAW HAS BEEN CONSIDERED I N ITSS /8/CHD/2004 IN THE CASE OF ITO VS M/S KINKO COMPUTE R INDUSTRIES, BADDI & OTHERS BY THIS BENCH IN ORDER D ATED 22.08.2019. ACCORDINGLY, CONSIDERING THE ADMITTED F ACT OF TAX EFFECT INVOLVED, WE DISMISS THE REVENUES APPEAL RE LYING ON CIRCULAR NO. 17/2019 ISSUED BY THE CBDT DATED 08.08 .2019 AS NOT MAINTAINABLE. THIS DISMISSAL SHALL NOT BE CONST RUED AS AN AFFIRMATION OF THE ISSUES ON MERITS AS DECIDED BY T HE LD. CIT(A). SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH SEPTEMBER,2019. SD/- SD/- ( $ % & ' ( ) ( ! ) (ANNAPURNA GUPTA) (DIVA SINGH) )* #/ ACCOUNTANT MEMBER ' #/ JUDICIAL MEMBER POONAM '+ ',- .-' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # /' / CIT4. # /' ( )/ THE CIT(A) 5. -01 '2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 / ASSISTANT REGISTRAR