The ACIT, Circle-2(1)(1), Ahmedabad V. Hariom Protiens Pvt. Ltd., Ahmedabad

ITA 146/AHD/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6880 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 15-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Keywords: Tax effect
• Section: 40(a)(ia)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA NO.146/AHD/2018 / ASSTT. YEAR: 2012-13 A CIT , CIR . 2(1)(1) AHMEDABAD. VS. H ARIOM PROTEINS P.LTD. 204, RAJLAXMI PLAZA, SHAHIBAG RD. AHMEDABAD. PAN : AAACL 9508 P ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI S.K. DEV, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 30/07/2019 / DATE OF PRONOUNCEMENT: 30/07/2019 +,/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-2, AHMEDABAD DATED 5.10.2017 PASSED FOR THE ASSTT.YEAR 2012-13. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. NOTICE OF HEARING WAS SENT TO THE ASSESSEE AT THE ADDRESS MENTIONED IN FORM NO.36 . HOWEVER, THE SAME WAS RETURNED BY THE POSTAL AUTHORITIES WITH THE REMARK NOT KNOWN. THEREFORE, WE PROCEED TO DISPOSE OF THIS APPEAL EX PARTE QUA ASSESSEE-RESPONDENT. 3. REVENUE HAS RAISED FOUR GROUNDS IN APPEAL. HOWE VER, SOLE ISSUE INVOLVED IN ALL THESE IS THAT THE LD.CIT(A) HAS ERR ED IN DELETING DISALLOWANCE OF RS.6,44,464/- WITH THE AID OF SECTION 40(A)(IA) OF THE INCOME TAX ACT FOR NON-COMPLIANCE OF SECTION 194A/194C ON THE PAYMENT OF INTEREST PAID TO CERTAIN PARTIES. 4. WE HAVE GONE THROUGH ORDERS OF THE REVENUE AUTHO RITIES. WHEN WE NOTICED FROM THE ORDER THAT QUANTUM OF DISPUTED AMO UNT IS RS.6,44,464/- AND ITA NO.146/AHD/2018 2 THE TAX EFFECT THEREON WOULD BE LESS THAN RS.20 LAK HS, WE PUT A QUERY TO THE LD.DR AS THE APPLICABILITY OF RECENT INSTRUCTION NO .3 OF 2018 DATED 11.8.2018 OF THE CBDT, BY WHICH THE CBDT HAS PROHIBITED THE R EVENUE IN FILING APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.20 LAKHS. THE LD.DR HAS NOT DISPUTED APPLICABILITY OF ABOVE CIRCULAR AND THE TA X EFFECT ON THE DISPUTED AMOUNT IS BELOW RS.20 LAKHS. HE HAS ALSO NOT POINT ED OUT WHETHER THE CASE OF THE REVENUE FALL WITHIN THE AMBIT OF EXCEPTIONS PRO VIDED IN THE CIRCULAR OR NOT. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR , WHICH IS APPLICABLE TO PENDING APPEALS ALSO, AND PROVISIONS OF SECTION 268 A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE APPEAL OF THE REVENUE D ESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MO RE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRC ULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 30 TH JULY, 2019 AT AHMEDABAD. S D / - (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 30/07/2019