The ITO,TDS, Valsad V. Gujarat Themis Biosyn Ltd., Vapi

ITA 1836/AHD/2010

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9559 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 16-02-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 28-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: M K PATEL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ITA NO. 1836/AHD/2010 ASSESSMENT YEAR :2006 - 07 INCOME-TAX OFFICER (TDS), VALSAD, ASHISH BUILDING, OLD R.T.O., MADANWAD, VALSAD VS . GUJARAT THEMIS BIOSIN LIMITED 69C, GIDC INDUSTRIAL ESTATE, VAPI PAN NO. AABCG0802C (APPELLANT) .. (RESPONDENT) ! ' / BY REVENUE SMT. SONIA KUMAR, SR. D.R . ' / BY ASSESSEE SHRI M. K. PATEL, A.R. % ' / DATE OF HEARING 16.02.2016 &'() ' / DATE OF PRONOUNCEMENT 17 .02.2016 ( )/ ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A), VALSAD, DATED 22.12.2009 FOR A.Y. 2006-07. 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER:- ITA NO.1836/AHD/10 A.Y. 2006-07 (ITO (TDS) VS. GUJARAT THEMIS BIOSIN LTD.) 2 1. THE LD. CIT(A) ERRED IN LAW AS WELL AS FACTS OF THE CASE IN DELETING THE DEMAND RAISED OF RS.269757/- BY THE A.O. U/S.201(1)/201(1A ) ON THE EXPENSES INCURRED FOR EFFLUENT TREATMENT OF RS.8601098/- U/S.194C OF THE I.T. ACT WITHOUT GIVING CLEAR FINDING THAT PROVISION OF SECTION 194J IS APPLICABL E. 2. THE LD. CIT(A) ERRED IN LAW AS WELL AS FACTS OF THE CASE IN DELETING THE DEMAND RAISED BY THE A.O. U/S.201(1)/201(1A) WITHOUT DEDUC TING TAX AT SOURCE U/S.194A OF THE ACT PERTAIN TO DELAYED PAYMENT CHARGES TO DAKSH IN GUJARAT VIJ CO. LTD. 3. BEFORE US, AT THE OUTSET, LD. A.R. SUBMITTED THA T THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. THE LD. D.R. FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REV ENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE DELETION OF DEMAND OF RS.2,69, 757/-. 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 TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTH ER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE DEMAND WHICH IS IN D ISPUTE, THE TAX EFFECT IS LESS THAN RS.10 LACS AND IN THE ABSENCE OF ANY MATERIA L ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRCULAR, WE AR E OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPE AL OF THE DEPARTMENT AND ITA NO.1836/AHD/10 A.Y. 2006-07 (ITO (TDS) VS. GUJARAT THEMIS BIOSIN LTD.) 3 THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENU E WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 17 - 02 - 2016. SD/- SD/- ( SHAILENDRA KUMAR YADAV) (ANIL CHATURV EDI) JUDICIAL MEMBER ACCOUNTANT MEMB ER AHMEDABAD: DATED. 17/02/2016 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER/ / ! ./)