The Dy. CIT., Circle-2(1)(1), Ahmedabad V. M/s. Infinium Motors Pvt. Ltd., Ahmedabad

ITA 1334/AHD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8369 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-10-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 18-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Set aside
• Section: 14A

Judgement Text

ITA NO.1334 /AHD/2016 DCIT VS. INFINIUM MOTORS PVT. LTD. ASSESSMENT YEAR : 2011-12 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH B, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND AMARJIT S INGH, ACCOUNTANT MEMBER] ITA NO.1334/AHD/2016 ASSESSMENT YEAR: 2011-12 DY. COMMISSIONER OF INCOME-TAX CIRCLE-2(1)(1), AHMEDABAD .....APPELLANT VS INFINIUM MOTORS PVT. LTD., ..........RESP ONDENT 842, NEAR YMCA CLUB, SARKHEJ-GANDHINAGAR HIGHWAY, JIVRAJ PARK, AHMEDABAD 380 051. [PAN : AAACI 4684 B] APPEARANCES BY MUDIT NAGPAL, FOR THE REVENUE NONE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : OCTOBER 07, 2019 DATE OF PRONOUNCEMENT : OCTOBER 07, 2019 O R D E R PER JUSTICE P P BHATT, PRESIDENT : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 18 TH FEBRUARY, 2016, PASSED BY THE LEARNED CIT(A)-2, AH MEDABAD FOR THE ASSESSMENT YEAR 2011-12. 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE A S FOLLOWS: (1) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF RS.65,20,964/- U/S 36(1)(III) OF TH E IT ACT WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. (2) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE DISALLOWANCE OF RS.14.34 LACS U/S 14A OF THE IT ACT WITHOUT PROP ERLY APPRECIATING THE FACTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. (3) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. (4) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER MAY BE REST ORED TO THE ABOVE EXTENT. ITA NO.1334 /AHD/2016 DCIT VS. INFINIUM MOTORS PVT. LTD. ASSESSMENT YEAR : 2011-12 PAGE 2 OF 2 3. AT THE TIME OF HEARING BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESSEE; HOWEVER, SINCE THE ISSUE IN QUESTION IS COVERED BY CBDT CIRCULAR NO.17 OF 2019 DATED 08.08.2019, THIS APPEAL IS DECIDED EX-PARTE Q UA THE ASSESSEE, AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSING THE MA TERIAL AVAILABLE ON RECORD. 4. HAVING HEARD THE LEARNED DEPARTMENTAL REPRESENTA TIVE AND HAVING PERUSED THE MATERIAL ON RECORD, WE FIND THAT PRIMA FACIE THIS A PPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO .17 OF 2019 DATED 08.08.2019. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STANDS ENHANCED TO RS.50 LAKHS. THI S CONCESSION GRANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTI VE IN EFFECT INASMUCH AS IT APPLIES TO ALL PENDING APPEALS AS WELL. IN VIEW OF THE ABOVE POSITION, THE APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE AND MUST BE D ISMISSED AS SUCH. 5. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFFECT OF MORE TH AN RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WITHIN THE EXEMPTION CLAUSE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERTY TO FILE MISCELLANEOUS AP PLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLICATION SHOULD BE FILED WITHIN TIME LIMIT PRESCRIBED IN THE ACT. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. PRONOUNCED IN THE OPEN COURT TODAY ON THE 7 TH OCTOBER, 2019. SD/- SD/- AMARJIT SINGH JUSTICE P P BHATT (ACCOUNTANT MEMBER) (PRESIDEN T) AHMEDABAD, DATED THE 7 TH DAY OF OCTOBER, 2019 BT* COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ...LOW TAX EFFECT...03.10.201 9.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 03.10.2019....... N WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P. S.: .03.10.2019........