The DCIT, (Exemption),Circle-2, Ahmedabad V. Nandesari Industries Association, Nandesari

ITA 1812/AHD/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3724 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 20-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A N K I T C H O K I
• Keywords: Tax effect; Benefit of exemption
• Section: 12; 11; 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER ./I.T.A. NO. 1812/AHD/2018 ( / ASSESSMENT YEAR: 2015-16) DCIT(EXEMP.) CIRCLE-2, AHMEDABAD 2 ND FLOOR, NATURE VIEW BUILDING, OPP. H.K. HOUSE, ASHRAM ROAD, AHMEDABAD- 380009 / VS. NANDESARI INDUSTRIES ASSOCIATION PLOT NO. 134/1, OPP. SHOPPING CENTRE, NANDESARI ./ ./PAN/GIR NO. : AAA TN6 770 E ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MUDIT NAGPAL, SR. DR / RESPONDENT BY: SHRI ANKIT CHOKSHI, AR !' /DATE OF HEARING 22/10/2019 #$!' / DATE OF PRONOUNCEMENT 27/11/2019 %& /O R D E R PER MS. MADHUMITA ROY - JM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2015-16, A RISE FROM ORDER OF THE CIT(A)-9, AHMEDABAD DATED 15.06.2018, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN THE LAW AND FACTS I N ALLOWING THE BENEFIT OF EXEMPTIONS U/S. 11 WITHOUT CONSIDERING THE FACT THAT THE ASSESSEE IS INVOLVED IN WIDESPREAD COMMERCIAL ACTIVITIES IN NAT URE OF BUSINESS AND THE ACTIVITY OF THE ASSESSEE IS COVERED UNDER FIRST AND SECOND PROVISO TO SEC. 2(15) OF THE ACT. ITA NO. 1812/AHD/2018 [DCIT VS. NANDESARI INDUSTRI ES ASSOCIATION] A.Y. 2015-16 2 2. THE LD. CIT(A) HAS ERRED IN THE LAW ON FACTS IN DELETING THE ADDITION OF RS. 1,05,70,846/- MADE ON ACCOUNT OF DISALLOWANC E OF ECP CONTRIBUTION EXPENSES WITHOUT APPRECIATING THE FACT THAT ONCE TH E PROVISO TO SECTION 2(15) IS APPLICABLE, THE BENEFIT OF SECTION 11 AND 12 CAN NOT ALLOWED FURTHER. 3. THE REVENUE CRAVES OVER LEAVE TO AD, ALTER, AMEN D, MODIFY, SUBSTITUTE, DELETE AND/OR ANY GROUNDS OF APPEAL ON OR BEFORE TH E FINAL HEARING, IN NECESSITY SO ARISES. 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 RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (PRADIP KUMAR KEDIA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD: DATED 27/11/2019 TANMAY TRUE COPY TRUE COPY THIS ORDER PRONOUNCED IN OPEN COURT ON 27/11/2019 ITA NO. 1812/AHD/2018 [DCIT VS. NANDESARI INDUSTRI ES ASSOCIATION] A.Y. 2015-16 3 / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 22.10.2019 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 22.10.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. .10.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .10.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S .10.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 27.11.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER