Income-tax Officer, V. M/s. Red Wine Shop, Dhule

ITA 1920/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9299 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 19-02-2018
• Assessment Year: 2008-2009
• Appeal Filed On: 30-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JHA
• Keywords: Tax effect; Revenue expenditure
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE , , , BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 1920 /P U N/201 6 / ASSESSMENT YEAR : 20 08 - 09 THE INCOME TAX OFFICER, WARD 2, DHULE ....... / APPELLANT / V/S. M/S. REAL WINE SHOP, S. NO. 361, PLOT NO. 6, RAJNIGANDHA APARTMENT, DEOPUR, DHULE PAN : AAJFR1430Q / RESPONDENT ASSESSEE BY : SHRI SUNIL GANOO REVENUE BY : SHRI MUKESH JHA / DATE OF HEARING : 19 - 02 - 2018 / DATE OF PRONOUNCEMENT : 19 - 0 2 - 201 8 / ORDER PER VIKAS AWASTHY, JM : TH E APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - I, NASHIK DATED 08 - 06 - 2016 FOR THE ASSESSMENT YEAR 2008 - 09. 2 ITA NO . 1920/PUN/2016, A.Y. 2008 - 09 2. SHRI SUNIL GANOO APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO B E DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF CBDT CIRCULAR NO. 21/2015, DATED 10 - 12 - 2015 . 3. SHRI MUKESH JHA REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT , TAX EFFECT IS LESS THAN ` 10 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IN ALLOWING ASSESSEES CLAIM OF LICENSE FEE RS.4,70,981/ - PAID TO EXCISE DEPARTMENT AS REVENUE EXPENDITURE. IN ORIGINAL ASSESSMENT PROCEEDINGS U/S. 143(3) O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ), THE CLAIM OF ASSESSEE WAS ACCEPTED. THE ASSESSMENT WAS - REOPENED TO MAKE DISALLOWANCE HOLDING THE EXPENDITURE TO BE CAPITAL. THE COMMISSIONER OF INCOME TAX (APPEALS) HELD THE RE - OPENING OF A SSESSMENT AS BAD IN LAW AND INVALID. HENCE, THE PRESENT APPEAL BY THE DEPARTMENT. AS PER DEMAND NOTICE ISSUED TO THE ASSESSEE, THE TAX EFFECT INVOLVED IN APPEAL IS RS .62,868/ - WHICH IS FAR L ESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT FOR FILING OF APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL. THE CBDT VIDE CIRCULAR NO. 21/2015, DATED 10 - 12 - 2015 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO ` 10 LAKHS. THUS, IN VIEW OF CBDT CIRCULAR , THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 3 ITA NO . 1920/PUN/2016, A.Y. 2008 - 09 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 19 TH DAY OF FEBRUARY, 2018. SD/ - SD/ - ( / ANIL CHATURVEDI ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 19 TH FEBRUARY, 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 1 , NASHIK 4. THE PR . COMMISSIONER OF INCOME TAX - 1, NASHIK 5. , , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE