The ACIT, Circle-4, Surat V. M/s. Samir Diamonds Mfg. Pvt. Ltd., Dist.Surat

ITA 1733/AHD/2005

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9360 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-08-2009
• Assessment Year: 2002-2003
• Appeal Filed On: 07-07-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD C BENCH (BEFORE S/SHRI R.V.EASWAR, VICE-PRESIDENT AND A.N. PAHUJA, ACCOUNTANT MEMBER) ITA.NO.1733/AHD/2005 [ASSTT.YEAR : 2002-2003] ACIT, CIR.4 SURAT. VS. M/S.SAMIR DIAMONDS MFG. PVT.LTD. DIAMOND NAGAR, PO LAKHANA, TAL.KAMREJ DIST : SURAT. REVENUE BY : SMT.NEETA SHAH ASSESSEE BY : SHRI HARDIK VORA O R D E R PER R.V.EASWAR, VICE-PRESIDENT : THIS APPEAL IS BY THE REVENUE. IT RELATES TO THE AY 2002-03. THE GIST OF THE GROUN DS TAKEN IS THAT THE CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITION OF RS.11 ,60,810 TO THE GROSS PROFIT MADE AFTER REJECTING THE BOOK RESULTS U/S 145(3) OF THE IT ACT. 2. A PRELIMINARY OBJECTION TAKEN ON BEHALF OF THE R ESPONDENT-ASSESSEE WAS THAT THERE WAS NO TAX EFFECT AND THEREFORE THE APPE AL SHOULD BE DISMISSED AS NOT MAINTAINABLE. IT IS CONTENDED THAT THE APPEAL HAS B EEN FILED IN VIOLATION OF THE DEPARTMENTAL CIRCULARS. 3. FROM THE ASSESSMENT ORDER IT IS SEEN THAT EVEN A FTER MAKING THE ADDITION NOW IN APPEAL BEFORE US THE TOTAL INCOME OF THE ASS ESSEE HAS BEEN ASSESSED AT RS. NIL, AFTER ADJUSTING THE BROUGHT FORWARD UNABSO RBED LOSS OF RS.57,585. 4. THE PRESENT APPEAL WAS FILED BY THE DEPARTMENT O N 7-7-2005. THERE IS NO TAX EFFECT AND NO DEMAND CAN BE RAISED EVEN IF THE ASSESSMENT ORDER IS UPHELD. IN CIT V MANGLAM RICINUS LTD. (2008) 174 TAXMAN 186 THE DELHI HIGH COURT HAS HELD THAT IN SUCH A CASE THE INSTRUCTIONS OF TH E CBDT WOULD APPLY AND THE APPEAL MUST BE HELD NOT MAINTAINABLE. THE AHMEDABAD BENCHES OF THE TRIBUNAL PAGE - 2 ITA.NO.1733/AHD/2005 -2- ARE CONSISTENTLY TAKING THIS VIEW FOLLOWING THE JUD GMENT CITED ABOVE. RESPECTFULLY FOLLOWING THE JUDGMENT AND THE VIEW OF THE AHMEDABAD BENCHES OF THE TRIBUNAL, WE DISMISS THE APPEAL OF THE DEPAR TMENT AS NOT MAINTAINABLE. NO COSTS. ORDER PRONOUNCED IN OPEN COURT ON 21 ST AUGUST, 2009. SD/- SD/- (A.N.PAHUJA) ACCOUNTANT MEMBER (R.V.EASWAR) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 21-08-2009 COPY OF THE ORDER FORWARDED TO: 1) : ASSESSEE 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR, ITAT, AHMEDABAD