The ITO, Ward-6(2), Ahmedabad V. Vikas Co,Op.Housing Society Ltd., Ahmedabad

ITA 1971/AHD/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 72899 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2014
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 31-01-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 03-09-2012
• Court: TRIBUNAL
• Department Lawyers: O P BATHEJA
• Keywords: Tax effect

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO. 1971/AHD/2012 ASSESSMENT YEAR 2005-06 ITO, WARD-6(2) AHMEDABAD. VS. VIKAS COOP HOUSING SOCIETY LTD., AHMEDABAD PAN: AAAAV0610J (APPELLANT) (RESPONDENT) REVENUE BY : SH. O.P. BATHEJA, SR. D.R. ASSESSEE(S) BY : SMT. URVASHI SHODHAN, AR / // / DATE OF HEARING : 31/01/2014 !'# / DATE OF PRONOUNCEMENT : 06/02/2014 $% $% $% $%/ // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-XI DATED 04.06.2012. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT T HE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWA NCE OF RS 25,30,110/- CLAIMED BY THE ASSESSEE U/S 57(III) OF THE ACT. 3. AT THE OUTSET, THE LD. AR OF THE ASSESSEE POINTE D OUT THAT THE TAX EFFECT INVOLVED IN THE INSTANT APPEAL IS OF RS 2,42 ,976/-. HE EXPLAINED THAT THE ASSESSEE FILED RETURN OF INCOME SHOWING NIL ITA NO. 1971/AHD/2012 VIKAS COOP HOUSING SOCIETY LTD., AHD VS. ITO, WD-6( 2), AHD FOR A.Y. 2005-06 - 2 - INCOME AND THE ASSESSMENT WAS COMPLETED AT AN INCOM E OF RS 4,33,187/-. THE ASSESSEE EARNED INTEREST INCOME OF RS 4,06,797/- AND CLAIMED THAT THE SAID INCOME DOES NOT GO TO RED UCE THE MAINTENANCE EXPENSE OF RS 25,30,110/- WHICH WAS NOT ACCEPTED BY THE ASSESSING OFFICER. THUS AS THE TAX EFFECT IS L ESS THAN THE LIMIT SPECIFIED IN CBDT INSTRUCTION NO. 3 OF 2011 DATED 0 9.12.2011, THEREFORE, IN VIEW OF SECTION 258A OF THE ACT, THE PRESENT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 4. THE LD. DR STATED THAT IF LOSS OF RS 20,96,923/- IS TAKEN INTO CONSIDERATION, THEN THE TAX EFFECT WILL BE MORE THA N RS 3,00,000/-. 5. HOWEVER, IT IS OBSERVED THAT IT IS NOT THE CASE OF THE REVENUE THAT THE ASSESSEE CLAIMED LOSS OF RS 20,96,923/- TO BE C ARRIED FORWARD AND RATHER IT HAS BEEN ADMITTED IN THE ASSESSMENT O RDER THAT THE ASSESSEES RETURNED INCOME IS NIL. THEREFORE, WE FIND THAT THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN RS 3, 00,000/- AND CONSEQUENTIAL APPEAL FILED BY THE REVENUE IS NOT MA INTAINABLE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON THURSDAY, THE 6 TH FEBRUARY, 2014 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 06/02/2014 GHANSHYAM MAURYA GHANSHYAM MAURYA GHANSHYAM MAURYA GHANSHYAM MAURYA, SR. P , SR. P , SR. P , SR. P. .. .S SS S. .. .