The Dy. Commissioner of Income Tax, Mehsana Circle, Mehsana V. Olympic Laminates Pvt. Ltd., Gandhinagar

ITA 1801/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5935 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 05-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Retrospective amendment; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.1801/AHD/2016 / ASSTT. YEAR: 2013-14 DCIT, MEHSANA CIR. MEHSANA. VS OLYMPIC LAMINATES P.LTD. AT. KAROLI, TAL. KALOL DIST. GANDHINAGAR. PAN : AAACO 3029 Q ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI MUDIT NAGPAL, SR.DR ASSESSEE BY : MS.URVASHI SHODHAN, AR / DATE OF HEARING : 06/03/2018 / DATE OF PRONOUNCEMENT: 07 /03/2018 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A), GANDHINAGAR, DATED 8.4.2016 PASSED FOR THE ASSTT.YE AR 2013-14. 2. BY THIS APPEAL, REVENUE HAS CHALLENGED ACTION OF THELD.CIT(A) IN ALLOWING EXCESS DEPRECIATION AMOUNTING TO RS.29,85, 223/- ON ANCILLARY COST. 3. AT THE VERY OUTSET, THE LD.COUNSEL FOR THE ASSES SEE HAS DRAWN OUR ATTENTION TOWARDS RECENT CBDT CIRCULAR RESTRICTING FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BEL OW RS.10 LAKHS. HE POINTED OUT THAT TAX EFFECT IN THE PRESENT CASE IS BELOW MONETARY LIMIT PRESCRIBED BY THE CBDT, AND THEREFORE, APPEAL OF TH E REVENUE IS LIABLE TO ITA NO.1801/AHD/2016 2 DISMISSED AT THE THRESHOLD. ON THE OTHER HAND, THE LD.DR WAS UNABLE TO DISPUTE THE SAME, BUT LEFT TO THE TRIBUNAL TO DECID E THE APPEAL IN ACCORDANCE WITH LAW. 4. WE HAVE HEARD LD.DR AND GONE THROUGH THE IMPUGNE D ORDERS. WE FIND THAT APPEAL OF THE REVENUE, WHICH IS FILED ON 28.8. 2015 IS HIT BY RECENT CBDT INSTRUCTION NO.21 OF 2015 DATED 10.12.2015 WHEREBY THE BOARD HAS PROHIBITED ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPE AL BEFORE THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFEC T BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRE SENT CASE, TAX EFFECT ON THE ADDITIONS DELETED BY THE LD.CIT(A) AND CONTESTED BY THE REVENUE, WOULD BE LESS THAN RS.10 LAKHS. THEREFORE, THE PRESENT APPE AL DESERVES TO BE DISMISSED AS BEING FILED IN VIOLATION OF THE ABOVE CBDT INSTR UCTION. IT IS THUS DISMISSED. 5. IT IS FURTHER OBSERVED THAT ON RE-VERIFICATION A T THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE OR IT FA LLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEP ARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT ORDER PRONOUNCED IN THE COURT ON 7 TH MARCH, 2018 AT AHMEDABAD. SD/- SD/- ( PRAMOD KUMAR ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 07/03/2018