The DCIT, Circle-1(1)(1), Ahmedabad V. M/s. Ahmedabad Packaging Industries Ltd., Ahmedabad

ITA 1946/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6375 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 29-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVATIA
• Keywords: Tax effect; Rule 8D
• Section: 143(3); 201; 254(2)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, D BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND MS MADHUMITA ROY, JUDICIAL MEMBER ./ ITA NO. 1946/AHD/2017 / ASSTT. YEAR: 2014 - 2015 D .C.I.T , CIRCLE - 1(1)(1) , AHMEDABAD VS . AHMEDABAD PACKAGING INDUSTRIES LTD. A/2 - 326, PHASE - II , GIDC IND. ESTATE, VATVA , AHMEDABAD , AHMEDABAD - 382445 . PAN : AABCA6006A (APPLICANT) ( RESPONENT ) REVENUE BY : SHRI VINOD TANWANI , SR. D.R ASSESSEE BY : SHRI S.N. DIVATIA, A.R / DATE OF HEARING : 30 / 07 / 201 9 / DATE OF PRONOUNCEMENT: 16 / 10 /201 9 / O R D E R PER W ASEEM AHMED , ACCOUNTANT MEMBER : THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 1, AHMEDABAD , ( IN SHORT LD. CIT(A) ) DATED 2 0/06/2017 ARISING IN THE MATTER OF ASSESSMENT ORDER PASSED U/S 143(3) OF THE INCOME - TAX ACT 1961, (HERE - IN - AFTER REFE RRED TO AS THE ACT ) DATED 06/09/2016 RELEVANT TO ASSESSMENT Y EAR 2014 - 20 15 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: (A) THAT THE LD.CIT( A) HAS ERRED IN LAW AND ON FACTS IN RESTRICTING THE DISALLOWANCE OF RS.32,497/ - TO RS.3,010/ - MADE U/S.14A R.W.S RULE 8D. ITA NO. 1946/AHD/2017 A.Y. 2014 - 2015 2 (B) THAT LD.CIT(A) HAS ERRED IN LAW & FACTS IN DELETING THE DISALLOWANCE OF RS.89,06,379/ - MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CE NVAT CREDIT. 2. AT THE TIME OF DICTATION IT WAS NOTICED THAT THE TAX EFFECT IN TH E IMPUGNED APPEAL FILED BY THE R EVENUE IS LESS THAN 50 LAKHS. THEREFORE, THE SAME IS NOT MAINTAINABLE IN VIEW OF THE RECENT CIRCULAR ISSUED BY THE CBDT BEARING NO. 17/2019 D ATED 8 TH AUGUST 2019. HOWEVER, WE NOTE THAT THE IMPUGNED APPEAL WAS HEARD DATED 30 JULY 2019 BEFORE THE ISSUANCE OF SUCH CIRCULAR BY THE CBDT. BUT THE ORDER AFTER HEARING THE APPEAL WAS RESERVED FOR THE PRONOUNCEMENT. AS THE ORDER WAS NOT PRONOUNCED TILL 8 TH AUGUST 2019 WHEN CBDT WITHDREW ITS APPEALS PENDING BEFORE THE ITAT INVOLVING TAX EFFECT LESS THAN 50 LAKHS, T HEREFORE, WE ARE OF THE VIEW THAT THE IMPUGNED CBDT CIRCULAR IS ALSO APPLICABLE IN SUCH CASES I.E. THE HEARING WAS CONCLUDED BUT THE ORDERS WER E RESERVED FOR PRONOUNCEMENTS TILL THE DATE OF THE ANNOUNCEMENT OF SUCH CIRCULAR. 2.1 THE RELEVANT EXTRACT OF THE CIRCULAR ISSUED DATED 8 AUGUST 2019 READS AS UNDER: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME - TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY. THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME - TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50 , 00 , 000 2 BEFORE HIGH COURT 1 , 00 , 00 , 000 3 BEFORE SUPREME COURT 2 , 00 , 00 , 000 FROM THE ABOVE, IT IS CLEAR THAT THE IMPUGNED APPEAL F ILED BY THE R EVENUE IS NOT MAINTAINABLE AS THE TAX EFFECT IS LESS THAN 50 LAKHS. THIS FACT CAN ALSO BE VERIFIED FROM THE GROUNDS OF APPEAL FILED BY THE ASSESSEE AS MENTIONED ABOVE. ITA NO. 1946/AHD/2017 A.Y. 2014 - 2015 3 3. BEFORE PARTING, WE ALSO NOTE THAT THERE ARE CERTAIN EXCEPTIONS SPECI FIED IN THE CBDT CIRCULAR BEARING NO. 17 OF 2019 DATED 8 AUGUST 2019 READ WITH CIRCULAR NO. 3 OF 2018 DATED 11 TH JULY 2018 WHERE THE TAX LIMIT OF RS. 50 LACS WILL NOT BE APPLIED. AS SUCH, IN THOSE CASES THE APPEAL OF THE REVENUE WILL STAND AND THE SAME WIL L NOT BE HIT BY THE IMPUGNED CIRCULAR DESPITE THE TAX EFFECT IS LESS THAN 50 LAKHS. THEREFORE, WE WANT TO MAKE IT CLEAR THAT IF THE REVENUE ON THE VERIFICATION FINDS THAT THE IMPUGNED CASE OF THE ASSESSEE FALLS IN THE EXCEPTION AS PROVIDED IN THE CIRCULAR OR TAX EFFECT EXCEEDS, THEN IT WILL BE AT ITS LIBERTY TO MOVE AN APPLICATION FOR THE RE CALLING OF THIS ORDER OF THE TRIBUNAL WITHIN THE PRESCRIBED TIME UNDER THE PROVISIONS OF SECTION 254(2) OF THE ACT. IN VIEW OF THE ABOVE, WE DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 16 /10 /2019 AT AHMEDABAD. - SD - - SD - ( MS MADHUMITA ROY ) JUDICIAL MEMBER ( WASEEM AHMED ) ACCOUNTANT MEMBER (TRUE COPY) AHMEDABAD; DATED 16 / 10 /201 9 MANISH