Income Tax Officer, Ward -2, Tezpur V. M/s. T & D Coke Product, Tezpur

ITA 199/GTY/2018

AI Insights

The case involves the Income Tax Officer, Ward-2, Tezpur as the appellant and M/s. T & D Coke Products as the respondent. The Revenue appealed against the order of the Commissioner of Income Tax (Appeals), Guwahati-1, which had deleted an addition of Rs. 1,15,00,000 made by the Assessing Officer under section 2(22)(e) of the Income Tax Act, 1961, treating an unsecured loan as deemed dividend. The Tribunal, after considering the CBDT Instruction No. 17 of 2019, dismissed the appeal due to the low tax effect of the disputed addition.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 129037 (ITAT-GUWAHATI)
• Duration Of Justice: 4 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-12-2022
• Assessment Year: misc
• Appeal Filed On: 08-07-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 2(22)(e); 254(2)

Judgement Text

ITA No. 199/GAU/2018 Assessment Year: 2011-2012 M/s. T & D Coke Products 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-GUWAHATI ‘e-COURT’, KOLKATA [Virtual Court Hearing] Before Shri Rajpal Yadav, Vice-President (KZ) & Dr. Manish Borad, Accountant Member I.T.A. No. 199/GAU/2018 Assessment Year: 2011-2012 Income Tax Officer,.............................. Appellant Ward-2. Tezpur, Aayakar Bhawan, Ex-Police Line, Tezpur-784001 -Vs.- M/s. T & D Coke Products,.......................Respondent Baroholia, Tezpur, Sonitpur, Assam-784001 [PAN:AAEFT1273G] Appearances by: Shri N.T. Sherpa, JCIT, appeared on behalf of the Revenue N o n e, appeared on behalf of the assessee Date of concluding the hearing : December 19, 2022 Date of pronouncing the order : December 20, 2022 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The Revenue is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), Guwahati-1, Guwahati dated 29.01.2018 passed for Assessment Year 2011-12. ITA No. 199/GAU/2018 Assessment Year: 2011-2012 M/s. T & D Coke Products 2 2. The Revenue has taken four grounds of appeal. In Ground No. 1, Revenue has pleaded that ld. CIT(Appeals) has erred in deleting the addition of Rs.1,15,00,000/-, which was added by the ld. Assessing Officer under section 2(22)(e) of the Income Tax Act, 1961 by treating the unsecured loan as deemed dividend. In rest of the three grounds, Revenue has advanced arguments in support of Ground No. 1. 3. In response to the notice of hearing, no one has come present on behalf of the assessee. However, our Bench Clerk has informed that a request for adjournment was made by someone from the assessee on telephone. We do not entertain such type of request and accordingly proceed to decide the appeal. 4. With the assistance of ld. CIT(DR), we have gone through the grounds raised by the Revenue. As observed above, it is pertinent to note that deletion of addition of Rs.1,15,00,000/- is being challenged by the Revenue. This would call for computation of tax below Rs.50 lakhs. In other words, the deletion of disputed addition at the end of ld. CIT(Appeals) would not have a tax effect more than Rs.50 lakhs. Hence, appeal of the Revenue is not maintainable in terms of CBDT Instruction bearing No. 17 of 2019 issued on 8 th August, 2019. It is also pertinent to note that this case does not fall within the ITA No. 199/GAU/2018 Assessment Year: 2011-2012 M/s. T & D Coke Products 3 exemption provided at Serial No. 8 of such Instruction. It is further observed that since ld. CIT(DR) has computed the tax effect before us without having knowledge of complete facts. In case on re-appreciation of all the details, it came to the notice of ld. Assessing Officer that tax effect is more than the prescribed limit for challenging the order of ld. CIT(Appeals), then Revenue will be at liberty to file an appropriate Miscellaneous Application under section 254(2) of the Income Tax Act for re-call of this order. It is made clear that such application be filed within the time limit. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 20.12.2022. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President Kolkata, the 20 th day of December, 2022 Copies to :(1) Income Tax Officer, Ward-2. Tezpur, Aayakar Bhawan, Ex-Police Line, Tezpur-784001 (2) M/s. T & D Coke Products, Baroholia, Tezpur, Sonitpur, Assam-784001 (3) Commissioner of Income Tax (Appeals), Guwahati-1, Guwahati, ITA No. 199/GAU/2018 Assessment Year: 2011-2012 M/s. T & D Coke Products 4 (4) Commissioner of Income Tax- , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.