DCIT, Circle, Parwanoo V. M/ Ind Sphinx Precision Ltd., Parwanoo

ITA 1589/CHANDI/2017

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3932 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 22-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SHRUTI KHANDELWAL
• Keywords: Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCHES A, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R.KUMAR, ACCOUNTANT MEMBER ITA NO. 1589/CHD/2 017 ASSESSMENT YEAR: 2012-13 THE DCIT, VS M/S IND SPHINX PRECISION LTD. , CIRCLE, PLOT NO. 28, SECTOR-5, PARWANOO. PARWANOO, DISTT. SOLAN (HP) PAN : AABCS9437R (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. CHANDER KANTA, SR.DR RESPONDENT BY : SMT. SHRUTI KHANDELWAL DATE OF HEARING : 23.07.2018 DATE OF PRONOUNCEMENT : 03.10.2018 ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE ASSAILI NG THE CORRECTNESS OF THE ORDER DATED 29.09.2017 OF CIT (A) SHIM LA PERTAINING TO THE 2012-13 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES, THE LD. CIT( A) HAS ERRED IN DELETING THE ADDITION OF RS. 25,81,994/- MADE BY A.O. ACCOUNT OF FOREIGN CUR RENCY FLUCTUATION INCOME, WHICH WAS NOT ELIGIBLE FOR DEDUCTION U/S 80-IC IN VIEW OF THE JUDGMENT IN THE CASE OF M/S LIBERTY INDIA LTD. VS. CIT(317 ITR 218) AS THE ASSESSEE HAD FAILED TO PRODUCE ANY EVIDENCE TO SUBSTANTIATE THAT THE SAME RELATES TO BUSINESS TRAN SACTION ON REVENUE ACCOUNT. 2. ON FACTS AND IN THE CIRCUMSTANCES, THE LD. CIT(A) H AS FURTHER ERRED IN DELETING THE DISALLOWANCE MADE BY A.O. U/S 14A AMOUNTING TO RS. 5,84,013/- BY IGNORING THE FACT THAT ASSESSEE HAS NOT DECLARED ANY TAXABLE DIVIDEND INCO ME. 2. AT THE TIME OF HEARING, AN APPLICATION WAS PLACED ON BEH ALF OF THE ASSESSEE STATING THAT THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE WHEREIN THE TAX EFFECT WAS LESS THAN RS. 20 LACS AND THUS , THE APPEAL HAVING BEEN FILED IN VIOLATION OF CBDT CIRCULAR NO. 3/2018 DATE D 11.07.2018 MAY BE DISMISSED IN TERMS OF THE ABOVE CIRCULAR. 3. THE LD. SR.DR ON GOING THROUGH THE MATERIAL AVAILABLE ON RECORD AGREED THAT THE SUBMISSIONS OF THE ASSESSEE ON FACTS ARE CORRECT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IN THE LIGHT OF THE SUBMISSIONS OF THE PARTIES BEFOR E THE BENCH, THE APPEAL OF THE REVENUE IS DISMISSED ON THE GROUNDS OF LOW TAX EFFECT IN ITA 1589/CHD/2017 A.Y.2012-13 PAGE 2 OF 2 TERMS OF THE AFORESAID CIRCULAR OF THE CBDT BY WHICH THE T AX AUTHORITIES ARE BOUND. THE APPEAL OF THE REVENUE, ACCORDINGLY, IS DIS MISSED AS NOT PRESSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. ORDER PRONOUNCED IN THE OPEN COURT ON 03.10. 2018. SD/- SD/- (DR.B.R.R.KUMAR) ( DIVA SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.