The Dy. Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad V. Codmach Machinery Pvt. Ltd., Ahmedabad

ITA 1546/AHD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6337 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 23-09-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 09-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Double taxation relief; Tax effect
• Section: 143(3)

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 1546/AHD/2016 ( / ASSESSMENT YEAR: 2012-13) DCIT CRICLE-1(1)(2), A WING, ROOM NO. 308, 3 RD FLOOR, PRATYAKHA KAR BHAVAN, AMBAWADI, AHMEDABAD / VS. CADMACH MACHINERY PVT. LTD. PLOT NO. 3604/3605, PHASE-IV, VATVA, AHMEDABAD- 382445 ./ ./PAN/GIR NO. : AAA CC6 242 R ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VINOD TANWANI, SR. DR / RESPONDENT BY: SHRI JIGAR PATEL, AR !' /DATE OF HEARING 23/09/2019 #$!' / DATE OF PRONOUNCEMENT 15/10/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2012-13, A RISE FROM ORDER OF THE CIT(A)-1, AHMEDABAD DATED 28.03.2016, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS. 96,21,380/- MADE ON ACCOUNT OF DISALLOWANCE U/S. 40(A)(I) OF THE I.T. ACT, 1961. 2. THE CIT(A) HAS SUBSTANTIALLY ERRED IN NOT APPREC IATING AND CONSIDERING THE FINDING OF THE AO THAT PAYMENT OF F EES FOR EXPLORING THE MARKET IN EUROPEAN COUNTRIES FOR ITS PRODUCT ARE NO T COVERED UNDER ARTICLE-14 OF THE DTAA. ITA NO. 1546/AHD/2016(DCIT VS. CADMACH MACHINERY PVT. LTD.) A.Y. 2012-13 2 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 15/10/2019 TANMAY, SR. PS TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 THIS ORDER PRONOUNCED IN OPEN COURT ON 15/10/2019