The ACIT, (OSD), Range-1, Ahmedabad V. CIL Nova Petrochemicals Ltd., Ahmedabad

ITA 1435/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5109 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 20-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DAVE
• Assessee Lawyers: S N SOPARKAR
• Keywords: Tax effect
• Section: 143(3); 145

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 1435/AHD/2015 ( ASSESSMENT YEAR : 2011-12) ACIT (OSD), RANGE-1, AHMEDABAD / VS. CIL NOVA PETROCHEMICALS LTD., 391/396, MORAIYA VILLAGE, SARKHEJ BAVLA HIGHWAY, SANAND, AHMEDABAD - 382210 ./ ./ PAN/GIR NO. : AADCN0932G ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. K. DAVE, SR. D.R. / RESPONDENT BY : SHRI S. N. SOPARKAR, A.R. DATE OF HEARING 24/07/2018 !'# / DATE OF PRONOUNCEMENT 03/08/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-6, AHMEDABA D (CIT(A) IN SHORT), DATED 26.03.2015 ARISING IN THE ASSESSME NT ORDER DATED 03.02.2014 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 143(3) ITA NO.1435/AHD/15 [ACIT (OSD) VS. CIL NOVA PETROCHEMICALS LTD.] A.Y. 2011-12 - 2 - OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AS SESSMENT YEAR 2011-12. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE U/S 41(1) OF RS.41,51,987/- WITHOUT APPRECIATING TH E FACT THAT BY NOT MAKING PAYMENT OF SUCH EXPENDITURE IN EARLIER YEARS, THE A SSESSEE HAS OBTAINED BENEFIT THEREOF. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.6,02,273/- MADE ON UNUTILIZED CENVAT CREDIT WITH OUT APPRECIATING THE FACT THAT AGAINST INCLUSIVE METHOD MANDATED U/S 145 A OF THE ACT, THE ASSESSEE HAS FOLLOWED EXCLUSIVE METHOD OF ACCOUNTIN G 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE I S HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON ITA NO.1435/AHD/15 [ACIT (OSD) VS. CIL NOVA PETROCHEMICALS LTD.] A.Y. 2011-12 - 3 - SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 03/08/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 03/08/201 8