Deputy Commissioner of Income tax, Pune V. M/s. Frontline Electronics Ltd., Pune

ITA 1448/PUN/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8739 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 08-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN SHINDE
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM . / ITA NOS.1447 & 1448/PUN/2017 / ASSESSMENT YEARS : 2009-10 & 2010-11 DCIT, CIRCLE-9, PUNE. ....... / APPELLANT / V/S. M/S. FRONTLINE ELECTRONICS LTD., EL-35, ELECTRONIC ZONE, J-BLOCK, MIDC, BHOSARI, PUNE-411026. PAN : AAACF2689P / RESPONDENT REVENUE BY : SHRI KIRAN SHINDE ASSESSEE BY : NONE / DATE OF HEARING : 12.09.2019 / DATE OF PRONOUNCEMENT : 12.09.2019 / ORDER PER D. KARUNAKARA RAO, AM: THERE ARE TWO APPEALS UNDER CONSIDERATION FILED BY THE REVENUE. BOTH THE APPEALS ARE DIRECTED AGAINST THE COMMON ORDER OF THE CIT(A)-9, PUNE DATED 23.02.2017 FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11 RESPECTIVELY. 2. BEFORE US, NONE TO REPRESENT THE ASSESSEE DESPITE SERVICE OF NOTICE BY THE ITAT. THEREFORE, BOTH THE APPEALS OF THE REVENUE ARE BEING DECIDED ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING OF THE LD. DR FOR THE REVENUE. 2 ITA NOS.1447 & 1448/PUN/2017 3. IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THE GROUNDS RAISED BY THE REVENUE IS BELOW RS.50 LAKHS. THEREFORE, BOTH THE APPEALS OF THE REVENUE ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF LATEST CBDT CIRCULAR NO.17/2019 [F.NO.279/MISC.142/2007-ITJ (PT)] DATED 08 TH AUGUST, 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018. IN BOTH THE APPEALS, THE REVENUE RAISED GROUNDS ASSAILING THE FINDINGS OF CIT(A) IN DELETING THE ADDITIONS. THUS, THE TAX EFFECT ON THE SAID ADDITIONS IS LESS THAN RS.50 LAKHS. 4. THE LD. DR FOR THE REVENUE FAIRLY ADMITTED THAT IN THE PRESENT APPEALS BY THE REVENUE THE TAX EFFECT IS LESS THAN RS.50 LAKHS. 5. AFTER HEARING THE LD. DR FOR THE REVENUE, WE FIND THE REVENUE IS IN APPEALS AGAINST THE ORDER OF CIT(A) IN DELETING THE ADDITIONS. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THE APPEALS IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO.17/2019 [F.NO.279/MISC.142/2007-ITJ (PT)] DATED 08 TH AUGUST, 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08-08-2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO.3 OF 2018 DATED 11-07-2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEALS, IN VIEW OF THE CBDT CIRCULAR (SUPRA) THE PRESENT APPEALS OF THE REVENUE ARE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 3 ITA NOS.1447 & 1448/PUN/2017 6. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEALS, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEALS ARE PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11-07-2018 AND ITS AMENDMENT DATED 20-08-2018. 7. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH DAY OF SEPTEMBER, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (D. KARUNAKARA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 12 TH SEPTEMBER, 2019 SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-9, PUNE. 4. THE PR.CIT-1, PUNE. 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.