The ACIT, Circle-5, Ahmedabad V. M/s. RJP Infrastructure Pvt. Ltd., Ahmedabad

ITA 1802/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8241 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 18-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VASUNDHARA UPMANYA
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1802/AHD/2015 ( / ASSESSMENT YEAR : 2010-11) THE DCIT CIR-3(1)92) AHMEDABAD / VS. M/S.RJP INFRASTRUCTURE PVT.LTD. 4 TH FLOOR, RJP HOUSE ANAND NAGAR CROSS ROAD SATELLITE AHMEDABAD $ ./ ./ PAN/GIR NO. : AACCR 9599 J ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : MS.VASUNDHARA UPMANYA, CIT-DR ($'*) / RESPONDENT BY : SHRI ABHISHEK JAIN, AR +,*- / DATE OF HEARING 06/11/2017 ./0*- / DATE OF PRONOUNCEMENT 10 / 11 /2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-9, AHME DABAD [CIT(A) IN SHORT] DATED 09/03/2015 FOR THE ASSESSMENT YEAR (AY) 2010-11. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE RE AD AS UNDER:- ITA NO.1802/AHD /2015 DCIT VS. M/S.RJP INFRASTRUCTURE P.LTD. ASST.YEAR 2010-11 - 2 - 1) THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETI NG THE ADDITION OF RS.15,45,021/- ON ACCOUNT OF DISALLOWANCE OF INTERE ST U/S.36(1)(III) OF THE ACT AND NOT CONSIDERING THE FINDINGS OF AO T HAT INTEREST BEARING FUNDS WERE DIVERTED AS INTEREST FREE ADVANC ES GIVEN BY THE ASSESSEE TO ITS RELATED CONCERN. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UP HELD THE ORDER OF THE ASSESSING OFFICER. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID CIRCULA R, 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 MONETARY LIMIT WHICH IS RS.10 LAKHS. IN THE INSTANT CASE, T HE TAX EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STATED TO B E LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE D ISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. ITA NO.1802/AHD /2015 DCIT VS. M/S.RJP INFRASTRUCTURE P.LTD. ASST.YEAR 2010-11 - 3 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 10/ 11 /2017 D/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 10/ 11 /2017 4..+,.+../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-9, AHMEDABAD 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 06.11.17( COVERED MATTER - TA X EFFECT BELOW 10 LACS) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 06.11.17 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.10.11.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10.1.17 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