The Addl.CIT, Range-5, Ahmedabad V. M/s. Nandan Exim Ltd., Ahmedabad

ITA 1365/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8511 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 17-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 15-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Audit objection; Corroborative evidences; Tax effect
• Section: 14A

Judgement Text

ITA NO. 1365/AHD/2015 ACIT VS M/S NANDAN EXIM LTD ASSESSMENT YEAR: 2011-12 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO. 1365/AHD/2015 ASSESSMENT YEAR: 2011-12 ACIT .............APPELLANT RANGE-5, AHMEDABAD VS. M/S. NANDAN EXIM LTD .......................RESPONDENT SURVEY NO.198, 203/2, SAIJPUR GOPALPUR, PIRANA ROAD, PIPLEJ, AHMEDABAD 382405 [PAN : AAACN 5327 L] APPEARANCES BY: VK SINGH FOR THE APPELLANT NONE FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 25.09.2017 DATE OF PRONOUNCING THE ORDER : 25.09.2017 ORDER PER PRAMOD KUMAR, AM: 1. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-9, AHMEDABAD DATED 16.02.2015 FOR ASSESSMENT YEAR 2011-12. 2. THE GRIEVANCES OF THE ASSESSING OFFICER ARE AS FOLLOWS:- 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.24,82,582/- ON ACCOUNT OF DISALLOWANCE U/S 14A OF THE ACT AS THE ASSESSEE HAD NOT PROVED WITH SUPPORTING EVIDENCE THAT THE INTEREST FREE FUNDS WERE UTILIZED FOR MAKING INVESTMENT. 2. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.7,44,701/-, ON ACCOUNT OF DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE ACT AS THE ASSESSEE HAD NOT PROVED WITH SUPPORTING EVIDENCE THAT THE INTEREST FREE FUNDS WERE UTILIZED FOR MAKING PAYMENT TO SUPPLIERS OF CAPITAL GOODS 3. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. ITA NO. 1365/AHD/2015 ACIT VS M/S NANDAN EXIM LTD ASSESSMENT YEAR: 2011-12 PAGE 2 OF 2 4. WE 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 PROVIDED 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 RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE 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. [[[ 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED IN LIMINE. PRONOUNCED IN THE OPEN COURT TODAY ON THE 25 TH DAY OF SEPTEMBER, 2017. SD/- SD/- S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 25 TH DAY OF SEPTEMBER, 2017 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ........25.09.2017 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER: ... 25.09.2017........ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S.: ...25.09.2017.... . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT: . 25.09.2017........ 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 27.09.2017.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: ..