Income Tax Officer, Ward-4(1)(4), Bangalore V. M/s. MNS Exports Pvt Ltd, Bangalore

ITA 1433/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4705 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 20-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI
• Keywords: Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NOS.1433 & 1435(BANG) 2017 (ASSESSMENT YEARS : 2012 13 & 2013 14) THE INCOME TAX OFFICER, WARD 4(1)(4), BANGALORE. APPELLAN T VS M/S. MNS EXPORTS PVT. LTD., NO. 46/1, JARAGANAHALLI, KANAKPURA MAIN ROAD, BANGALORE - 560078 PAN. AABCM3819P RESPONDENT ASSESSEE BY : NONE REVENUE BY : SMT. PADMAMEENAKSHI, JCIT DR DATE OF HEARING : 29 05 2018 DATE OF PRONOUNCEMENT : 0 1 06 2018 O R D E R PER A. K. GARODIA, A.M.: BOTH THESE APPEALS ARE FILED BY THE REVENUE WHICH ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF CIT (A) 4 BANGALORE BOTH DATED 27.03.2017 FOR A. Y. 2012 13 & 2013 14. BOTH APPEALS WERE HEARD TOGETHER AND ARE DISPOSED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE BUT IT W AS NOTICED THAT THE TAX EFFECT IN BOTH THESE APPEALS OF THE REVENUE IS MUCH BELOW RS. 10 LACS AND HENCE, THESE APPEALS WERE HEARD EX PARTE QUA THE ASSESSEE. AT TH E VERY OUTSET, IT WAS POINTED OUT BY THE BENCH THAT THE TAX EFFECT IN BOTH THESE APPE ALS IS MUCH BELOW RS. 10 LACS BECAUSE THE DISALLOWANCE MADE BY THE AO U/S 14A IN A. Y. 2012 13 IS RS. 19,71,433/- AND SIMILAR DISALLOWANCE IN A. Y. 2013 14 IS ONLY RS. 232,610/- AND HENCE, EVEN IF THE ENTIRE DISALLOWANCE IS DELETED B Y CIT (A) AND THE REVENUE IS IN ITA NOS. 1433 & 1435(BANG)2017 2 APPEAL FOR ENTIRE SUCH DELETION, THEN ALSO, THE TAX EFFECT WILL BE MUCH BELOW RS. 10 LACS IN EACH YEAR AND AS PER THE LATEST CBDT INSTRU CTIONS, THE REVENUE IS NOT SUPPOSED TO FILE AN APPEAL BEFORE THE TRIBUNAL IF T AX EFFECT IS LESS THAN RS. 10 LACS. THE BENCH WANTED TO KNOW AS TO HOW THIS APPEAL IS M AINTAINABLE BECAUSE OF LOW TAX EFFECT. IN REPLY, LEARNED DR OF THE REVENUE HAD NOT HING TO SAY AND SHE SIMPLY SUPPORTED THE ASSESSMENT ORDER. 3. IN VIEW OF THE ABOVE DISCUSSION, BOTH THESE APPE ALS OF THE REVENUE ARE DISMISSED AS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. 4. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (LALIET KUMAR) SD/- (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER PLACE: BANGALORE D A T E D : 01.06.2018 /MS/ 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.