The DCIT, Circle-1(1)(2), Ahmedabad V. M/s. Trenchless Engineering Pvt. Ltd(Formerly M/s. Corrtech Trechless P. Ltd.), Ahmedabad

ITA 1765/AHD/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 6257 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 26-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 27; 12; 2; 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SHRI PRAMOD M. JAGTAP, VICE PRESIDENT & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 1765/Ahd/2019 ( नधा रण वष / Assessment Year: 2013-14) DC IT Cir cl e- 1( 1)( 2) , Ah me da bad बनाम/ V s . M/ s. Tr en ch le ss E n gin ee ri ng Pv t. Lt d. , ( Ea rl ie r k no wn as M/ s. C orr te ch Tr en chl es s Pv t. Ltd .) , 51 , Ma ha Gu jar at Ind us tr ia l E st at e, 1 01, 1 s t Fl oor , Op p. N ov a P etr oc he m, Vil la ge M or ai ya , C han go da r, Ah me da bad -3 82 21 3 थायीलेखासं. /जीआइआरसं. / P A N / G I R N o .: A A E C C 0 7 0 0 C (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से/Appellant by : Shri R. R. Makwana, Sr. D.R. यथ क ओरसे / Respondent by: N o n e स ु नवाईक तार"ख/ D a t e o f H e a r i n g 21/03/2022 घोषणाक तार"ख /D a t e o f P r o n o u n c e m e n t 23/03/2022 आदेश/O R D E R PER PRAMOD M. JAGTAP, VICE PRESIDENT: The appeal filed by the Revenue for A.Y. 2013-14, arise from order of the CIT(A)-1, Ahmedabad dated 12.09.2019, in proceedings under Section 143(3) of the Income Tax Act, 1961; in short “the Act”. 2. The ground of appeal raised b y the Revenue reads as under:- “ 1 . T h e C I T ( A ) h a s e r r e d i n l a w a n d i n f a c t s i n d i re c t i n g t h e A O t o a l l o w f o r e i g n t a x c r e d i t o f R s . 1 , 1 8 , 3 9 , 9 2 7 / - a s a ga i n s t R s . 7 2 , 4 4 , 2 1 6 / - a l l o w e d b y t h e A O . 2 . T h e C I T ( A ) h a s f a i l e d t o n o t e t h a t t h e a s s e s s e e h a s s u b m i t t e d b e f o r e A O t h a t p r o f i t s f r o m B a n g l a d e s h o p e r a t i o n s wa s R s . 3 , 7 3 , 3 1 , 1 9 6 / - w h e r e a s i t w a s c h a n g e d a s R s . 1 2 , 9 7 , 90 , 5 8 3 / - b e f o r e t h e ITA No. 1765/AHD/2019 [DCIT vs. M/s. Trenchless Engineering Pvt. Ltd.] A.Y. 2013-14 2 C I T ( A ) a n d t h a t t h e A O h a s a d o p t e d t h e m o s t r e a s o n ab l e a n d l o g i c a l m e t h o d o f a p p o r t i o n i n g t h e r e s p e c t i v e i n c o m e r e l a t iv e t o t h e t u r n o v e r . 2 . I t i s , t h e r e f o r e , p r a y e d t h a t t h e o r d e r o f l d . CI T ( A ) m a y b e s e t a s i d e a n d t h a t o f t h e A s s e s s i n g O f f i c e r b e r e s t o r e d. ” 3. At the ti me of hearing, the Ld. D.R. f airl y ad mitted that this appeal filed b y th e Revenue is hit b y CB DT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, 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 monetar y li mit wh ich is now revised at Rs.50 Lakhs. In the instant case, the tax effe c t on the disputed issues raised by t he Revenue is not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine. Accordingly, this appeal of the Revenue is dismis sed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in an y manner. 4. In the result, the appeal of the Revenue is dismissed. Sd/- Sd/- (Ms. MADHUMITA ROY) (PRAMOD M. JAGTAP) JUDICIAL MEMBER VICE PRESIDENT Ahmedabad: Dated 23/03/2022 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. राज व / Revenue 2. आवेदक / Assessee 3. संबं,धत आयकर आय ु -त / Concerned CIT 4.आयकर आय ु -त- अपील / CIT (A) 5. 1वभागीय त न,ध,आयकर अपील"य अ,धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाइल / Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील"य अ,धकरण,अहमदाबाद । This Order pronounced in Open Court on 23/03/2022