The ACIT, Vapi Circle, Vapi V. M/s. Micas Organics Pvt. Ltd., Vapi

ITA 1538/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1810 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-04-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 24-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Assessee Lawyers: M K PATEL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT, JUDICIAL MEMBER) ITA. NO: 1538/AHD/2013 (ASSESSMENT YEAR: 2009-10) A.C.I.T., VAPI CIRCLE, VAPI V/S M/S. MICAS ORGANICS PRIVATE LTD. PLOT NO. 297/4- 10, PHASE-II, GIDC, VAPI (APPELLANT) (RESPONDENT) PAN: AABCD0226D APPELLANT BY : SHRI NARENDRA SINGH, SR. D .R. RESPONDENT BY : SHRI M.K. PATEL, A.R. ( )/ ORDER DATE OF HEARING : 13 -04-201 6 DATE OF PRONOUNCEMENT : 13 -04-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A), VALSAD DATED 25.03.2011 PERTAINING TO A.Y. 2009-10. ITA NO. 1538 /AHD/2013 . A.Y. 2009-10 2 2. THE SOLE GRIEVANCE OF THE REVENUE RELATES TO THE DE LETION OF THE ADDITION OF RS. 20,43,921/- MADE BY THE A.O ON THE BASIS THAT THE ADVANCES GIVEN TO M/S. CRIMSON ORGANIC COLOURS IS F ROM INTEREST BEARING FUNDS BORROWED BY THE COMPANY. 3. A PERUSAL OF THE QUANTUM INVOLVED IN THE REVENUES APPEAL SHOWS THAT THE TAX EFFECT ON THE AMOUNT DELETED BY THE LD. CIT (A) IS LESS THAN RS. 10 LACS. 4. THIS APPEAL OF THE REVENUE IS DISMISSED IN THE LIGH T OF THE CIRCULAR NO. 21/2015 DATED 10.12.2015 BY WHICH THE CBDT HAS DIRE CTED THE REVENUE NOT TO FILE APPEAL IN CASES WHERE THE TAX E FFECT DOES NOT EXCEED RS. 10 LACS. 5. IN THE LIGHT OF THE AFOREMENTIONED CIRCULAR, THIS A PPEAL OF THE REVENUE IS DISMISSED. 6. HOWEVER, THE REVENUE IS FREE TO APPROACH THE TRIBUN AL IN CASE; IT FINDS THAT THE APPEAL IS NOT COVERED BY THE CIRCULAR OF T HE CBDT AS PER THE PROVISIONS OF THE LAW. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 13 - 04 - 2016. SD/- SD/- (KUL BHARAT) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: