The ITO, Ward-1(4), Ahmedabad V. M/s. Asmi Chemicals Pvt. Ltd., Ahmedabad

ITA 1705/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8669 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 11-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P MEENA
• Assessee Lawyers: GRISHMA SONI
• Keywords: Depreciation; Audit objection; Tax effect; Unabsorbed depreciation

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER , .., ./ ITA NO. 1705/AHD/2015 ASSESSMENT YEAR : 2008-09 ITO, WARD 1(1)(4), AHMEDABAD V/S . M/S. ASIM CHEMICALS PVT LTD 9, KARMANYA APPARTMENT, B/H. MOTIWALA HOSPITAL, AMBAWADI, AHMEDABAD PAN NO. AABCA 2937 N / ( APPELLANT) .. / ( RESPONDENT) REVENUE BY : SHRI O.P. MEENA, SR DR ASSESSEE BY : MS. GRISHMA SONI, AR % ' / DATE OF HEARING : 11.08.2017 % ' /DATE OF PRONOUNCEMENT : 14.08.2017 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, AHMEDABAD D ATED 12.03.2015 PASSED FOR AY 2008-2009. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL:- (1) THE CIT(A) HAS ERRED IN LAW AND ON FACTS BY HOLDING THAT THE REOPENING AND REASSESSMENT AS INVALID AND DESERVES TO BE QUAS HED. (2) THE CIT(A) HAS FURTHER ERRED IN ACCEPTING THE APPEL LANTS CLAIM THAT THE UNABSORBED DEPRECIATION OF AY 2005-06 WILL FORM THE CURRENT YEAR DEPRECIATION AND CAN BE SET OFF AGAINST SHORT TERM CAPITAL GAIN IN VIEW OF PROVISIONS OF SECTION 32(2) OF THE ACT. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN ITA NO. 1705/AHD/ 2015 ITO VS. ASIM CHEMICALS PVT LTD AY : 2008- 09 - 2 - VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12 .2015. SHE HAS ALSO SUBMITTED THAT IN THE PRESENT CASE THE TAX EFFECT I S RS.4,53,277/- WHICH IS BELOW THE PRESCRIBED LIMIT OF RS.10 LACS AND SHE HA S PLACED ON RECORD THE WORKING FOR THE SAME. THE LD. DEPARTMENTAL REPRESE NTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/20 15 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LAC S. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 14 TH AUGUST, 2017 AT AHMEDABAD. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED, 14/08/2017 **BT **BT**BT **BT ITA NO. 1705/AHD/ 2015 ITO VS. ASIM CHEMICALS PVT LTD AY : 2008- 09 - 3 - ' #%& '& / COPY OF THE ORDER FORWARDED TO : 1. - / THE APPELLANT 2. ./- / THE RESPONDENT. 3. 0 2 / CONCERNED CIT 4. 2 ( ) / THE CIT(A) 5. 5 .0 , ' 0 , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, TRUE COPY / (DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD