The DCIT, Circle-3, Ahmedabad V. M/s. Maruti Dye Chem Industries, Ahmedabad

ITA 1461/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8556 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 13-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANT JAVERI
• Assessee Lawyers: A C SHAH
• Keywords: Retrospective amendment; Tax effect
• Section: 37(1)

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.1460 AND 1461/AHD/2014 / ASSTT. YEAR: 2008-2009 AND 2009-2010 DCIT, CIR.3 AMBAWADI, AHMEDABAD. VS. M/S.MARUTI DYE CHEM INDUSTRIES C-1, B.NO.6, RAJMATA RUBBER PRODUCTS GIDC, NARODA, AHMEDABAD. PAN : AAEFM 6593 L / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI JAYANT JAVERI, SR.DR ASSESSEE BY : SHRI A.C. SHAH, AR ! / DATE OF HEARING : 05/09/2017 '#$ ! / DATE OF PRONOUNCEMENT: 06 /09/2017 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: PRESENT TWO APPEALS ARE BY THE REVENUE AGAINST ORDE RS OF THE LD.CIT(A)-6, AHMEDABAD OF EVEN DATED 4.3.2014 I N RESPECT OF TWO ASSESSMENT YEARS VIZ. A.Y.2008-09 AND 2009-2010 . ITA NO.1460 AND 1461/AHD/2014 2 2. IN THE PRESENT TWO APPEALS, THE REVENUE HAS CONT ESTED DELETION OF ADDITIONS BY THE LD.CIT(A) AS SET OUT I N THE GROUNDS OF APPEALS IN THE BOTH THE YEARS. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE H AS RAISED A PRELIMINARY ISSUE AS TO THE MAINTAINABILITY REVENUE S APPEALS BEFORE THE TRIBUNAL IN VIEW OF RECENT CBDT CIRCULAR RESTRICTING FILING OF APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS B ELOW RS.10 LAKHS. THE LD.AR HAS FILED CALCULATION SHEET SHOWI NG TAX EFFECT IN BOTH THE CASES BELOW RS.10 LAKHS. FOR THE SAKE OF BREVITY, THE SAME ARE REPRODUCED HEREUNDER: ASSESSMENT YEAR 2008-09 UNDER SECTION 145A RS.23,38,255/- COMMISSION RS. 2,68,419/- UNDER SECTION 37(1) RS. 17,414/- PERSONAL EXPENSES RS. 13,781/- TOTAL ADDITION DELETED BY CIT(A) RS.27,37,869/- TAX @ 33,33% US RS.9,12,532/- WHICH IS BELOW RS.10,00,000/- ASSESSMENT YEAR 2009-10 UNDER SECTION 145A RS.23,15,808/- PERSONAL EXPENSES RS. 30,978/- TOTAL ADDITION DELETED BY CIT(A) RS.23,46,786/- TAX @ 33,33% US RS.7,82,184/- WHICH IS BELOW RS.10,00,000/- HOWEVER, THE LD.DR DID NOT DISPUTE THE SAME, RATHER LEFT TO THE TRIBUNAL TO DECIDE THE APPEALS APPROPRIATELY. 4. WE HAVE HEARD LD.DR AND GONE THROUGH THE IMPUGNE D ORDERS. WE FIND THAT APPEAL OF THE REVENUE, WHICH IS FILED ON ITA NO.1460 AND 1461/AHD/2014 3 13.5.2014 IS HIT BY RECENT CBDT INSTRUCTION NO.21 O F 2015 DATED 10.12.2015 WHEREBY THE BOARD HAS PROHIBITED ITS SUBO RDINATE AUTHORITIES FROM FILING OF THE APPEAL BEFORE THE TR IBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT , MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDI NG APPEALS ALSO. IN THE PRESENT CASE, TAX EFFECT AS PER THE CALCULAT ION SHEETS REPRODUCED ABOVE, ON THE ADDITIONS DELETED BY THE L D.CIT(A) AND CONTESTED BY THE REVENUE, WOULD BE LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPEALS DESERVE TO BE DISMIS SED BEING TREATED TO BE FILED IN VIOLATION OF THE ABOVE CBDT INSTRUCTION. THEY ARE DISMISSED. 5. IT IS FURTHER OBSERVED THAT ON RE-VERIFICATION A T THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE O R IT FALLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DI SMISSED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 6 TH SEPTEMBER, 2017. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER