The ITO, Ward-1(4), Surat V. M/s. Priyank Cords and Tassels Pvt. Ltd., Surat

ITA 1487/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6091 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2003-2004
• Appeal Filed On: 15-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CAMP AT SURAT BEFORE SHRI RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH , ACCOUNTANT MEMBER ./ ITA NO. 1487 & 1488 /AHD/201 4 / ASSTT. YEAR: 2003 - 04 & 2004 - 05 RESPECTIVELY INCOME - TAX OFFICER, WARD - 1(4), SURAT VS. M/S. PRIYANK CORDS AND TASSELS PVT. LTD., G - 2, PARSHAVA APARTMENT, CHOWKI SHERI, NR. HANDLOOM HOUSE, NANPURA, SURAT - 395001 PAN : AACCP 6896 L / (APPELLANT) / (RESPONDENT) REVENUE BY : MR. ASHISH POPHARE, SR DR ASSESSEE BY : MR. SAPNESH R. SHETH / DATE OF HEARING : 2 8 / 0 4 /201 7 / DATE OF PRONOUNCEMENT: 28 / 0 4 /201 7 / O R D E R PER RAJPAL YADAV , JUDICIAL MEMBER : THESE TWO APPEAL S BY THE REVENUE ARE DIRECTED AGAINST THE RESPECTIVE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS) - I, SURAT OF EVEN DATE 29 .0 3 .2014 PASSED FOR AY 2003 - 04 & 2004 - 05 RESPECTIVLEY. 2. THOUGH THE REVENUE HAS TAKEN FIVE GROUNDS OF APPEAL IN BOTH THE CASES , BUT ITS GRIEVANCE REVOLVES AROUND A SINGLE ISSUE VIZ., WHETHER THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING EXEMPTION OF RS.12,92,719/ - FOR AY 2003 - 04 AND RS.11,23,415/ - FOR AY 2004 - 05, BOTH CLAIMED U/S 10A OF THE INCOME - TA X ACT , WHEN THERE WAS EVIDENCE ON RECORD THAT NEW PLANT AND MACHINERY HAD NOT BEEN PURCHASED AS STIPULATED IN THE PROVISIONS OF SECTION 10A OF THE I.T. ACT? 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT BOTH THE APPEAL S OF THE REVENUE NEED TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN ITA NO. 1487/AHD/ 2014 ITO VS. PRIYANK CORDS & TASSELS PVT LTD AY : 2003 - 04 2 VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. HE HAS ALSO SUBMITTED THAT THE TAX EFFECT IN EACH CASE IS BELOW THE PRESCRIBED LIMIT OF RS.10 LACS, I.E., RS. 4 , 75 , 075 / - FOR AY 2003 - 04 AND RS.4,03,025/ - FOR AY 2004 - 05. THE LD. COUNSEL FOR THE ASSESSEE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID C BDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA - FACIE THESE APPEAL S OF THE REVENUE ARE NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007 - ITJ (PT) DATED 1 0TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME - TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROV IDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELAT ES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT BOTH THE CASES OF REVENUE DO NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IN EACH CASE IS LESS THAN RS.10 LACS. THEREFORE, THE SE APPEAL S ARE NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 2 8 T H APRIL, 2017 AT CAMP SURAT . SD/ - SD/ - ( AMARJIT SINGH ) ACCOUNTANT MEMBER ( RAJPAL YADAV) JUDICIAL MEMBER SURAT ; DATED 2 8 / 0 4 /201 7 *BT ITA NO. 1487/AHD/ 2014 ITO VS. PRIYANK CORDS & TASSELS PVT LTD AY : 2003 - 04 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , / DR, ITAT, 6. / GUARD FILE . / BY ORDER, T R U E C O P Y / (DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD