The DCIT, Circle-1, Surat V. M/s. Enviro Control Associated Pvt.Ltd., Surat

ITA 1698/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9685 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 24-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR SR DR
• Keywords: Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD - , , BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ I.T.A. NO.1698/AHD/2011 ( / ASSESSMENT YEAR : 2008-09) THE DCIT CIRCLE-1 SURAT / VS. M/S.ENVIRO CONTROL ASSOCIATES PVT.LTD. ENVIRO HOUSE, OPP.BANK OF MAHARASHTRA GHOD DOD ROAD, SURAT $ ./ ./ PAN/GIR NO. : AAACE 8700 C ( $' / APPELLANT ) .. ( ()$' / RESPONDENT ) $' * / APPELLANT BY : MS.SONIA KUMAR, SR-DR ()$' + * / RESPONDENT BY : -NONE- ,- + . / DATE OF HEARING 29/01/2016 /0 + . / DATE OF PRONOUNCEMENT 02/02/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-I, SURAT [CIT(A) IN SHORT] DATED 01/04/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2008-09. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- ITA NO.1698 /AH D/2011 THE DCIT VS. M/S. ENVIRO CONTROL ASSOCIATES P.LTD . ASST.YEAR 2008-09 - 2 - 1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE B Y THE AO OF 20,70,951/- ON ACCOUNT OF EXCESSIVE PAYMENT MADE TO PERSON COVERED U/S.40(A)(2)(B) OF THE I.T.ACT. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER. 3) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE CIT( A) MAY BE SET- ASIDE AND THAT OF ASSESSING OFFICER MAY BE RESTORED TO THE ABOVE EXTENT. 2. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATI VE AND PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THAT PRIMA- FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULA R NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10 TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRT UE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS.10,00,0 00/-, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURT HER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL N OT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDE R OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELAT ES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT TH E PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LES S THAN RS.10,00,000/-. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS NOT MAINTAINABLE AND, HENCE, DISMISSED. ITA NO.1698 /AH D/2011 THE DCIT VS. M/S. ENVIRO CONTROL ASSOCIATES P.LTD . ASST.YEAR 2008-09 - 3 - 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 2 ND FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( MANISH BORAD ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 02/ 02 /2016 4..., ,.../ T.C. NAIR, SR. PS !'#$%&' &$ / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ()$' / THE RESPONDENT. 3. 56 7 / CONCERNED CIT 4. 7 ( ) / THE CIT(A)-I, SURAT 5. 8,9 (56 , . 560 , / DR, ITAT, AHMEDABAD 6. 9;< =- / GUARD FILE. ! / BY ORDER, )8 ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 1.2.16 (TAX LIMIT BELOW 10 L ACS) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 1.2.16 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.2.2.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2.2.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER