The DCIT, Circle-1, Ahmedabad V. M/s. Alps Chemicals Pvt. Ltd., Ahmedabad

ITA 1317/AHD/2015

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7306 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 24-03-2020
• Assessment Year: 2008-2009
• Appeal Filed On: 14-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD (THROUGH VIRTUAL COURT) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SMT. MADHUMITA ROY, JUDICIAL MEMBER ./ I.T.A. NO. 1317/AHD/2015 ( ASSESSMENT YEAR : 2008-09) DCIT CIRCLE 1(1)(1), AHMEDABAD / VS. M/S. ALPS CHEMICALS PVT. LTD. 612, PHASE IV, GIDC VATVA, AHMEDABAD 382445 ./ ./ PAN/GIR NO. : AAACA9523B ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI LALIT P. JAIN, SR.D.R. / RESPONDENT BY : NONE DATE OF HEARING 02/09/2020 !'# / DATE OF PRONOUNCEMENT 03/09/2020 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-1, AHMEDABAD (CIT(A) IN SHORT), DATED 1 9.02.2015 ARISING IN THE ASSESSMENT ORDER DATED 30.09.2013 PA SSED BY THE ITA NO. 1317/AHD/15 [DCIT VS. M/S. ALPS CHEMICALS PVT. LTD.] A.Y. 2008-09 - 2 - ASSESSING OFFICER (AO) UNDER S. 143(3) R.W.S. 263 O F THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY. 2008-09. 2. THE SUBSTANTIVE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 'THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDI NG THAT RS.1,09,18,296/- IS THE INCREMENTAL CAPITAL COST TOWARDS THE COST OF ASSETS AND REQUIRED TO BE REDUCED FROM THE WDV OF THE BLOCK BEING COST ACQUISITION WI THOUT CONSIDERING THE FACT THAT THE SUBSIDY IS NOT GIVEN FOR COMPENSATION TO T HE ASSESSEE AGAINST ANY LOSS OR DISCONTINUING USE OF CTC. 3. AT THE TIME OF HEARING, IT IS TRANSPIRED THAT TH E APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCU LAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHO LDS PERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 279/MISC/M-93/2018-ITJ DT. 2 0/08/2019 HAS OBSERVED THAT CIRCULAR NO.17/2019 DATED 08/08/2 019 RELATING TO ENHANCEMENT OF MONETARY LIMITS IS ALSO APPLICABL E TO ALL PENDING APPEALS. AS PER AFORESAID CIRCULAR READ WIT H INSTRUCTION, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFF ECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW R EVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT O N THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EX CEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIR ED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RES TORATION OF ITS ITA NO. 1317/AHD/15 [DCIT VS. M/S. ALPS CHEMICALS PVT. LTD.] A.Y. 2008-09 - 3 - APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MADHUMITA ROY) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 03/09/2020 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED ON 03/09/2020