Assistant Commissioner of Income tax, Pune V. Pandit Automotive Pvt.Ltd, Pune

ITA 1371/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7842 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 30-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SHABANA PARVEEN
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO , AM AND SHRI VIKAS AWASTHY, JM . / I TA NO.1371 /PUN/20 17 / ASSESSMENT YEAR : 2013 - 14 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 4, PUNE. ....... / APPELLANT / V/S. PANDIT AUTOMOTIVE PVT. LTD. CITY S NO.1073, FINAL PLOT NO. 425 , SUB PLOT NO.9, BHOSALE MYSTIQUA APTT. BHAMBURDA, MODEL COLONY, SHIVAJI NAGAR, PU NE - 411 016 PAN: AABCP0253A / RESPONDENT A SSESSEE BY : NONE REVENUE BY : MRS. SHABANA PAR VEEN / DATE OF HEARING : 22 .0 7 .2019 / DATE OF PRONOUNCEMENT : 22 .07 .2019 / ORDER PER VIKAS AWASTHY, JM THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER OF COMMIS SIONER OF INCOM E TAX (APPEALS) - 3, PUNE DATED 28.02.2017 FOR THE ASSESSMENT YEAR 2013 - 14. 2 ITA NO. 1371 /PUN/20 17 A.Y. 2013 - 14 2 . THE CBDT VIDE CIRCULAR NO.3/2018, DATED 11.07.2018 HAS REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL WITH RETROSPECTIVE EFFECT. AS PER THE CIRCULAR (SUPRA), THE MONETARY LIMIT OF TAX EFFECT FOR FILING APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT HAS BEEN RAISED TO RS.20 LAKHS. 3. THE LD. DR FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.20 LAKHS. 4. WE HAVE PERUSED THE CASE RECORD AND HEARD THE SUBMISSIONS OF THE LD. DR. THE ONLY ISSUE RAISED IN APPEAL BY THE DEPARTMENT IS DISALLOWANCE O F INTEREST EXPENDITUR E U/S.36(1 ) (III) ON ADVANCE OF RS.48,06,057/ - GIVEN TO ASHOK AUTOMOTIVES SALES & SERVICES PVT . LTD. BY THE ASSESSEE. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT CIRCULAR FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. WITHOUT GOING INTO MERIT OF THE GROUNDS RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA.), THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HER E THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR (SUPRA). 3 ITA NO. 1371 /PUN/20 17 A.Y. 2013 - 14 6 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . ORDER PRO NOUNCED IN THE OPEN COURT AF TER HEARING OF APPEAL ON MONDAY, THE 22 ND DAY OF JU LY , 201 9. SD/ - SD/ - ( . / D. KARUNAKARA RAO ) ( / VIKAS AWASTHY ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 22 ND JULY , 2019 SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 3, PUNE. 4. THE PR. CIT - 2, PUNE. 5 . , , , / DR, ITAT, A BENCH, PUNE. 6 . / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO. 1371 /PUN/20 17 A.Y. 2013 - 14 DATE 1 DRAFT DICTATED ON 2 2 .0 7 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 22.0 7 .2019 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER