The DCIT, Circle 1, Ahmedabad V. M/s. Adroit Tradelink Pvt. Ltd., Ahmedabad

ITA 1700/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6013 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-04-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 11-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH MEENA
• Assessee Lawyers: S N DIVATIA
• Keywords: Tax effect
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1700/AHD/2013 ( / ASSESSMENT YEAR : 2008-09) THE DCIT CIRCLE-1 AHMEDABAD / VS. M/S.ADROIT TRADELINK PVT.LTD. 43, 5 TH FLOOR SHRI KRISHNA CENTRE NR.CROSS WORD NAVRANGPURA, AHMEDABAD $ ./ ./ PAN/GIR NO. : AAACJ 3868 J ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY: SHRI OM PRAKASH MEENA, SR.DR ($'*) / RESPONDENT BY: SHRI S.N. DIVATIA, AR +,*- / DATE OF HEARING 26/04/2017 ./0*- / DATE OF PRONOUNCEMENT 05/ 05/2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-II I, AHMEDABAD [CIT(A) IN SHORT] DATED 26/03/2013 FOR THE ASSESSMENT YEAR (AY) 2008-09. ITA NO.1700/AHD /2013 DCIT VS.M/S.ADROIT TRADELINK PVT.LTD. ASST.YEAR 2008-09 - 2 - 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READ S AS UNDER:- THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELET ING THE ADDITION OF RS.13,77,308/- U/S.14A READ WITH RULE 8D BY HOLD ING THAT DIVIDEND INCOME BEING INCIDENTAL TO BUSINESS OF PUR CHASE AND SALE OF SHARES, PROVISIONS OF SECTION 14A OF THE ACT CAN NOT BE INVOKED AND THEREBY NOT APPRECIATING THE FACT THAT SECTION 14A DOES NOT MAKE ANY DISTINCTION BETWEEN INCIDENTAL AND MAIN IN COME AND IS ATTRACTED WHERE INCOME NOT FORMING PART OF TOTAL IN COME? 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 CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID CIRCULA R, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A ME ASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS RS.10 LAKHS. IN THE INSTANT CASE, T HE TAX EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STATED TO B E LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE D ISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. ITA NO.1700/AHD /2013 DCIT VS.M/S.ADROIT TRADELINK PVT.LTD. ASST.YEAR 2008-09 - 3 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 05 / 05/2017 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 05/ 05 /2017 4..+,.+../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-III, AHMEDABAD 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION ..27.4.17 (COVERED CASE TAX EFFECT) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 27.4.17 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.5.5.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.5.17 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