The ITO, Ward-2(3), Baroda V. M/s. Medoz Pharmaceuticals, Baroda

ITA 1609/AHD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94240 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D V SINGH
• Assessee Lawyers: DIVYAKANT PARIKH
• Keywords: Audit objection; Tax effect

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ ITA NO.1609/AHD/2013 /BLOCK ASSTT. YEAR: 2007-2008 ITO, WARD - 2(3) BARODA. VS M/S.MEDOZ PHARMACETUITCALS 505, C-WING, MANUBHAI TOWR SAYAJIGUNJ, BARODA. PAN : AAEFM 1866 E %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI D.V. SINGH, SR.DR ASSESSEE BY : SHRI DIVYAKANT PARIKH / DATE OF HEARING : 13/08/2015 / DATE OF PRONOUNCEMENT: 13/08/2015 )*/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF THE LD.CIT(A)-II, BARODA DATED 15.2.2013 PASSED FOR ASS TT.YEAR 2007-08. 2. SOLITARY GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) HAS ERRED IN ALLOWING EXPENDITURE OF RS.1,65,686/- BEING KEYM AN INSURANCE PREMIUM OF SHRI NANDKISHORE MAHESHWARI. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSES SEE SUBMITTED THAT THE TAX EFFECT, BY VIRTUE OF LEARNED CIT(A)S ORDER IS ONLY RS.49,706/-. HE FURTHER CONTENDED THAT CBDT HAS ISSUED INSTRUCTI ONS NO.3/2011 DATED 9.2.2011 PROHIBITING THE DEPARTMENT TO CHALLE NGE THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT, BY VIRTUE OF SUCH ORDE R, IS LESS THAN RS.3 LAKHS. AS FAR AS THE COMPUTATION OF TAX EFFECT OF RS.49,706/- IS ITA NO.1609/AHD/2013 2 CONCERNED, THE LD. DR IS UNABLE TO CONTROVERT THE C ONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 4. ON DUE CONSIDERATION OF THE FACTS, WE ARE OF THE VIEW THAT THE CBDT HAD ISSUED INSTRUCTION BEARING NO. 3/2011 [F. NO. 279/MISC. 142/2007-ITJ], DATED 9-2-2011 VIDE WHICH IT HAS BEE N PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF CIT(A)S ORDER IS BELOW RS.3 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL I N FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTION S WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE, THE TAX IS LESS THAN RS.3 LAKHS, AND THEREFORE, THE PRESENT AP PEAL IS NOT MAINTAINABLE. 5. IN THE RESULT OF THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE COURT ON 13 TH AUGUST, 2015 AT AHMEDABAD. SD/- SD/- (ANIL CHATURVEDI) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 13/08/2015