The ACIT,(OSD)-I, Circle-4, Ahmedabad V. Kunal Organics Pvt.Ltd., Ahmedabad

ITA 1827/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1553 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 19-05-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 19-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD , ACCOUNTANT MEMBER ./ ITA NO. 1827 /AHD/201 1 / ASSESSMENT YEAR 200 7 - 0 8 ACIT (OSD) - I, CIRCLE - 4, AHMEDABAD VS KUNAL OR G ANICS PVT LTD, 34, MADHUBAN TOWER, NR.MADALPUR UNDERBRIDGE, ELLISBRIDGE, AHMEDABAD PAN : AAACK 6202 F / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI MUKESH SHARMA , SR. DR. ASSESSEE(S) BY : NONE / DATE OF HEARING : 1 9 / 05 /201 6 / DATE OF PRONOUNCEMENT: 19 / 05 /201 6 / O R D E R PER KUL BHARAT, JUDICIAL MEMBER: - THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS) - VIII, AHMEDABAD DATED 04 . 04 .201 1 FOR ASSESSMENT YEAR 200 7 - 0 8 . 2. AT THE TIME OF HEARING, IT IS NOTICED THAT THE APPEAL OF THE REVENUE HAS BEEN FILED AGAINST THE ORDER OF LD. CIT(A) IN DELETING THE FOLLOWING DISALLOWANCE S: - I ) RS.10,76,045/ - ON ACCOUNT OF EXPENSES ON FOREIGN CURRENCY II ) RS.1,57,025/ - ON ACCOUNT OF TRAVELLING EXPENSES III ) RS.5,49,495/ - ON ACCOUNT OF MUNICIPAL TAXES. FROM THE ABOVE, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESSER THAN THE PRESCRIBED LIMIT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO.21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, ITA NO. 1827/AHD/ 2011 ACIT VS. KUNAL ORGANICS PVT LTD AY : 200 7 - 08 2 EXCLUDING I NTEREST EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT THE TAX EFFECT IS LESS THAN RS.10 LACS, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL I S NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THIS APPE AL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 3. I N THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 19 TH MAY , 201 6 AT AHMEDABAD. SD/ - SD/ - ( MANISH BORAD ) ACCOUNTANT MEMBER (KUL BHARAT) JUDICIAL MEMBER AHMEDABAD; DATED 19 / 05 /201 6 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD