The DCIT, Circle-1(2), Baroda V. Jyoti Ltd., Baroda

ITA 1769/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9729 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-01-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 09-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Keywords: Audit objection; Tax effect
• Section: 10

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD - , , BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./I.T.A. NO.1769/AHD/2012 ( / ASSESSMENT YEAR : 2009-10) THE ASST.CIT CIRCL-1(2) BARODA / VS. JYOTI LIMITED NANUBHAI AMIN MARG, INDUSTRIAL AREA P.O. CHEMICAL INDUSTRIES BARODA 390 003 % ./ ./PAN/GIR NO. : AAACJ 4909 N ( %( /APPELLANT ) .. ( )*%( / RESPONDENT ) %( / APPELLANT BY : SMT. SONIA KUMAR, SR.DR )*%( , / RESPONDENT BY : SHRI MANISH J.SHAH, AR , / DATE OF HEARING 27/01/2016 , / DATE OF PRONOUNCEMENT 27 /01/2016 /O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-I, BARODA DAT ED 29.05.2012 FOR THE ASSESSMENT YEAR 2009-10, DELETING THE ADDITION(S) O F RS.5,14,613/- IN RESPECT OF LONG STANDING DEBTS OWNED BY THE ASSESSEE, RS. 7 ,42,800/- ON ACCOUNT OF DISALLOWANCE OUT OF WELFARE EXPENSES, RS.4,92,856/ - MADE U/S.37(1) ON ACCOUNT OF DISALLOWANCE OUT OF MISC.EXPENSES CLAIME D TO HAVE INCURRED FOR MAINTENANCE OF GARDEN AND GUEST HOUSE AND RESTRICTI NG THE ADDITION OF ITA NO.1769/AHD/2012 ACIT VS. M/S.JYOTI LIMITED ASSESSMENT YEAR 2009-10 2 RS.2,88,036/- ON ACCOUNT OF DISALLOWANCE ON CREDIT CARD EXPENSES MADE BY THE ASSESSING OFFICER. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSE SSEE CONTENDED THAT AS PER CENTRAL BOARD OF DIRECT TAXES CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, THE REV ISED LIMIT FOR PREFERRING REVENUE'S APPEALS IS RS. 10 LACS. HE SUBMITTED THA T THE TAX EFFECT IN THE PRESENT REVENUE'S APPEAL IS BELOW THE PRESCRIBED L IMIT OF RS. 10 LACS. HE HAS ALSO SUBMITTED A WORKING OF THE TAX EFFECT. HE, T HEREFORE, PLEADED THAT IN VIEW OF THE CBDT CIRCULAR, THE REVENUE'S APPEAL MAY BE DISMISSED AS THE TAX EFFECT BEING BELOW THE PRESCRIBED LIMIT. 3. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/200 7-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS) S ORDER IS BELOW RS. 10 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFO RE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUS E (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTION S WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNE D ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELAT ES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRES ENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS. 1 0 LAKHS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMIS SED. ITA NO.1769/AHD/2012 ACIT VS. M/S.JYOTI LIMITED ASSESSMENT YEAR 2009-10 3 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 27TH JANUARY, 20 16 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( MANISH BORAD ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 27/ 01 /2016 0 . . , . . ./ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. %( / THE APPELLANT 2. )*%( / THE RESPONDENT. 3. 1 / CONCERNED CIT 4. 1 ( ) / THE CIT(A)-I, BARODA 5. 23 ) , , / DR, ITAT, AHMEDABAD 6. 35 / GUARD FILE. / BY ORDER, *2 ) //TRUE COPY// / (DY./ASSTT.REGISTRAR) $ % , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 27.1.16 (BELOW RUPEES 10 LAC S) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..27.1.16 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.27.1.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 27.1.16 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