The ITO, Ward-4(1), Ahmedabad V. G-2 International Exports Ltd. ( Now Vaibhavlaxmi International Ltd.), Ahmedabad

ITA 1907/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5081 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 26-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APOORVA BHARADWAJ
• Keywords: Audit objection; Tax effect

Judgement Text

ITA NO.1907/AHD/2015 ITO VS. VAIBHAV LAXMI INTERNATIONAL LTD., ASSESSMENT YEAR: 2010-11 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MADHUMITA ROY JM] ITA NO.1907/AHD/2015 ASSESSMENT YEAR: 2010-11 INCOME TAX OFFICER WARD 4(1)(4), AHMEDABAD. ..................APPELLANT VS. VAIBHAV LAXMI INTERNATIONAL LTD., ...........................RESPONDENT 252, NEW CLOTH MARKET, AHMEDABAD. [PAN : AABCA 6690 G] APPEARANCES BY: APOORVA BHARADWAJ FOR THE APPELLANT NONE FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 25.07.2018 DATE OF PRONOUNCING THE ORDER : 01.08.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 13.02.2015, PASSED BY THE LEARNED C IT(A)-2, AHMEDABAD FOR THE ASSESSMENT YEAR 2010-11, ON THE FOLLOWING GROUNDS: 1. WHETHER THE LD. CIT(A) IS RIGHT IN LAW AND ON FACTS IN DELETING DISALLOWANCE U/S.40(A)(I) ON ACCOUNT OF COMMISSION OF RS.42,67,271/- PAID TO AGENTS OUTSIDE INDIA WITHOUT COMPLYING THE PROVISIO NS OF SECTION 195 OF THE ACT. 2. WHETHER THE LD. CIT(A) IS RIGHT IN LAW AND ON FA CTS IN DELETING THE DISALLOWANCE U/S.14A R.W. RULE 8D OF RS.14,75,170/- 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. CIT(A) MAY BE SET ASIDE AND THAT OF THE ORDER OF THE ASSESSING OFFICER BE R ESTORED. 2. WE HAVE, AT THE OUTSET, NOTICED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIE W OF THE RECENT CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018. THE LEARNED DEPARTM ENTAL REPRESENTATIVE FAIRLY ITA NO.1907/AHD/2015 ITO VS. VAIBHAV LAXMI INTERNATIONAL LTD., ASSESSMENT YEAR: 2010-11 PAGE 2 OF 2 ADMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEA L IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 3. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENT ATIVE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FA CIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULA R NO.3/2018 IN F.NO.279/MISC.142/2007-ITJ (PT) DATED 11 TH JULY, 2018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPEALS S HOULD BE FILED BEFORE THE TRIBUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISS IONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, WHERE THE CONSTITUTIONAL VALIDITY OF TH E PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHERE BOARDS ORDER, NOTIFICATION, INS TRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT OR WHERE THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES N OT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 1 ST AUGUST, 2018 - SD/- SD/- MADHUMITA ROY PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 1 ST DAY OF AUGUST, 2018 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER OF INCOME TAX (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD