Assistant Commissioner of Income-tax, Bangalore V. M/s Parrys Sugar Industries Ltd, Bangalore

ITA 1721/BANG/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9656 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 30-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 14A

Judgement Text

ITA NO.1721/BANG/2016 M/S. PARRYS SUGAR INDUSTRIES LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL CBENCH: BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.1721/BANG/2016 ASSESSMENT YEAR: 2012-13 ACIT CIRCLE 5(1)(2) BANGALORE VS. M/S. PARRYS SUGAR INDUSTRIES LTD. 3 RD FLOOR,1/2 VENUS BUILDINGS KALYANAMANTAPA ROAD JAKKASANDRA, KORAMANGALA BANGALORE 34 PAN NO : AAACG8091J APPELLANT RESPONDENT APPELLANT BY : SHRI PRADEEP KUMAR, D.R. RESPONDENT BY : SHRI VIKRAM VIJAYARAGHAVAN, A.R. DATE OF HEARING : 29.07.2021 DATE OF PRONOUNCEMENT : 29.07.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE O RDER DATED 14.7.2016 PASSED BY LD. CIT(A)-5, BENGALURU AND IT RELATES TO ASSESSMENT YEAR 2012-13. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN DELETING THE FOLLOWING DISALLOWANC ES MADE BY THE A.O. 1. DISALLOWANCE OF COST ATTRIBUTABLE TO ADVANCE NOT PERTAINING TO BUSINESS - RS.1,24,00,000/- 2. DISALLOWANCE MADE U/S 14A OF THE ACT RS.18,14,00 0/- ITA NO.1721/BANG/2016 M/S. PARRYS SUGAR INDUSTRIES LTD., BANGALORE PAGE 2 OF 3 2. AT THE OUTSET, THE LD. A.R. SUBMITTED THAT THE A GGREGATE AMOUNT IN DISPUTE IS RS.1.42 CRORES AND THE TAX EFF ECT THEREON IS LESS THAN RS.50 LAKHS. ACCORDINGLY, THE LD. A.R. S UBMITTED THAT THE REVENUE IS PRECLUDED FROM PURSUING THIS APPEAL AS P ER CIRCULAR NO.17/2019 DATED 8.8.2019 ISSUED BY CBDT. ACCORDIN GLY, HE SUBMITTED THAT THE APPEAL FILED BY THE REVENUE REQU IRES TO BE DISMISSED IN LIMINE. 3. WE HEARD LD. D.R. AND PERUSED THE RECORD. FROM THE SUBMISSIONS MADE BY LD. A.R., WE NOTICE THAT THE TA X EFFECT INVOLVED IN THE ADDITIONS DISPUTED BY THE REVENUE IS LESS TH AN RS.50 LAKHS. ACCORDINGLY, FOLLOWING THE CBDT CIRCULAR (REFERRED ABOVE), WE DISMISS THE APPEAL OF THE REVENUE IN LIMINE. HOWEV ER, THE REVENUE IS GIVEN LIBERTY TO MOVE APPROPRIATE APPLICATION FO R RECALL OF THIS ORDER, IF IT IS FOUND THAT THE TAX EFFECT INVOLVED IS MORE THAN RS.50 LAKHS OR IF THE ISSUES CONTESTED BY THE REVENUE FAL L UNDER ANY OF THE EXCEPTIONS GIVEN IN THE CIRCULAR. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JULY, 2021 SD/- (GEORGE GEORGE K.) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 29 TH JULY, 2021. VG/SPS ITA NO.1721/BANG/2016 M/S. PARRYS SUGAR INDUSTRIES LTD., BANGALORE PAGE 3 OF 3 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.