Deputy Commissioner of Income Tax, Circle - 1, Shivamogga V. M/s. Sahyadri Arecanut Co. Pvt. Ltd., Shivamogga

ITA 1388/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7703 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 16-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TSHERING ONGDA JDIT ISCI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 1 3 88 / BANG/201 7 ASSESSMENT YEAR : 201 1 - 12 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1, SHIVAMOGGA. VS. M/S. SAHYADRI ARECANUT CO. PVT. LTD., APMC YARD, SHIVAMOGGA. PAN: AADCS1645K APPELLANT RESPONDENT APPELLANT BY : SHRI TSHERING ONGDA , JDIT (ISCI) RESPONDENT BY : SHRI TATA KRISHNA, ADVOCATE DATE OF HEARING : 2 8 .0 6 .2018 DATE OF PRONOUNCEMENT : 13 .0 7 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT (A), DAVANGERE DATED 02.02.2017 FOR ASSESSM ENT YEAR 2011-12. 2. THE GROUNDS RAISED BY THE REVENUEARE AS UNDER. 1. THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPE ALS), DAVANGERE, IS OPPOSED TO THE LAW AND NOT ON THE FAC TS AND CIRCUMSTANCES OF THE CASE. 2. THE COMMISSIONER OF INCOME TAX(APPEALS), DAVANGE RE, ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE TREATING THE AS SESSEE AS COMMISSION AGENT, SINCE THE STOCK BELONGS TO ASSESS EE AND VALUE OF THE STOCK WAS NOT TAKEN INTO ACCOUNT. 3. THE COMMISSIONER OF INCOME TAX(APPEALS), DAVANGE RE, FAILED TO FOLLOW THE DECISION OF THE HON'BLE HIGH COURT OF KA RNATAKA IN THE CASE OF RECON MACHIN TOOLS PVT. LTD., VS. CIT (286I TR637). 4. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED UP ON, THE ORDER OF THE CIT(A) MAY BE REVERSED AND THAT ASSESSMENT ORDE R BE RESTORED. ITA NO. 1388/BANG/2017 PAGE 2 OF 3 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OTHER GROUNDS ON OR BEFORE HEARING OF THE APPEAL. 3. THE LD. DR OF REVENUE SUPPORTED THE ASSESSMENT O RDER. AT THIS JUNCTURE, THE BENCH WANTED TO KNOW ABOUT THE TAX EFFECT IN THE PR ESENT APPEAL. IN REPLY, IT WAS SUBMITTED BY LD. DR OF REVENUE THAT IT IS NOTED BY AO IN THE ASSESSMENT ORDER ON PAGE NO. 1 THAT ASSESSEE E-FILED THE RETUR N OF INCOME FOR THE ASSESSMENT YEAR 2011-12 ON 28.09.2011 DECLARING A N ET LOSS OF RS. 9,47,099/- AND ULTIMATELY THE AO COMPUTED THE ASSESSED INCOME AT RS. 17,94,910/- AND TAX AND INTEREST DEMAND RAISED WAS OF RS. 6,61,840/ -. THE LD. AR OF ASSESSEE SUPPORTED THE ORDER OF CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT AS PER FORM NO. 36 FILED BY REVENUE, THE RETURNED INCOME WAS AT A LOSS OF RS. 9,47,099/- AND ASSESSED INCOME WAS RS. 17,94,910/- AND AS PER THES E TWO FIGURES, IT IS SEEN THAT THE ADDITION MADE BY THE AO OF RS. 27,42,009/- BEING THE SUM TOTAL OF RS. 9,47,099/- + RS. 17,94,910/-. THE TAX EFFECT F OR THE ADDITION OF RS. 27,42,009/- IS BOUND TO BE LESS THAN RS. 10 LAKHS A ND HENCE, EVEN IF THE ENTIRE ADDITION IS DELETED BY CIT (A) AND THE REVENUE IS I N APPEAL FOR SUCH ENTIRE DELETION THEN ALSO, THE TAX EFFECT WILL NOT BE MORE THAN RS. 10 LAKHS. AS PER THE LATEST CBDT INSTRUCTIONS, THE REVENUE IS NOT SUPPOS ED TO FILE APPEAL BEFORE THE TRIBUNAL WHERE THE TAX EFFECT IS LESS THAN RS. 10 L AKHS. ACCORDINGLY THIS APPEAL OF REVENUE IS NOT MAINTAINABLE BECAUSE OF LOW TAX E FFECT AND THE SAME IS ACCORDINGLY DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (SUNIL KUMAR YADAV) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 13 TH JULY, 2018. /MS/ ITA NO. 1388/BANG/2017 PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.