Assistant Commissioner of Income TAx Circle-1(1), Hubballi V. M/s Desai & Co., Hubballi

ITA 1492/BANG/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1322 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-02-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 16-08-2016
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES : B, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNTANT MEMBER AND SMT.BEENA PILLAI, JUDIC I AL MEMBER ITA NO.1492(BANG)/2016 (ASSESSM E NT YEAR : 2010 - 11) THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 1( 1 ), CR BUILDING, HUBLI - 580 025 APPELLANT VS M/S DESAI & CO. P B ROAD, VIDYANAGAR, HUBLI PAN NO.AAAFD9759P RESPONDENT REVENUE BY : SHRI R.N.SIDDA P PAJI, ADDL.CIT APPELLANT BY : SHRI S.V.RAVISHANKAR, ADVOCATE DATE OF HEARING : 26 - 08 - 2019 DATE OF PRONOUNCEMENT : 09 - 09 - 2019 O R D E R PER BEENA PILLAI, JUDICIAL MEMBER : PRESENT APPEAL IS PREFERRED BY REVENUE AGAINST ORDER OF LD. CIT(A) , HUBLI DA TED 31 .0 3 .201 6 FOR ASSESSMENT YEAR 201 0 - 11 . 2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE F IND THAT IN THIS CASE AS PER RETURN OF INCOME FILED BY THE A SSESSEE, INCOME DECLARED WAS OF RS. 77,68,690/ - , AS A GAINST ASSESSED INCOME OF RS. 2,81,49,110/ - . THI S ADDITION HAS BEEN DELETED BY L D. CIT(A) PARTLY . BEFORE THIS TRIBUNAL REVENUE ALLEGES DISALLOWANCE DELETED BY LD.CIT(A) IN RESPECT OF PROVISION FOR EXTENDED WARRANTY TO THE EXTENT OF RS.33,60,000/ - . A S PER THE LATEST NOTIFICATION ISSUED BY CBDT, ITA NO.1492(B)/2016 PAGE 2 OF 2 NO APPEAL IS REQUIRED TO BE FILED BEFORE THE TRIBUNAL , IF THE TAX EFFECT IS BELOW RS. 50 .00 LAKHS AND SINCE IN THE PRESENT CA SE, THE TAX EFFECT OF ALLEGED ISSUE IS BELOW RS. 50 .00 LAKHS, APPEAL OF REVENUE IS NOT MAINTAINABLE DUE TO LOW TAX. THIS IS BY NOW SETTLED POSITION OF LAW THAT CBDT INSTRUCTION IS APPLICABLE TO PENDING APPEALS A ND HENCE APPEAL OF REVENUE IS DISMISSED BECAUSE OF LOW TAX EFFECT. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER P RONOUNCED IN THE OPEN COURT ON 09 - 09 - 2019. SD/ - SD/ - (A.K.GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09 - 09 - 2019 *AM COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.GUARD FILE BY ORDER ASSTT.REGISTRAR