Assistant Commissioner of Income-tax, V. M/s. Zambad Infrastructure Ltd., Aurangabad

ITA 2024/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5280 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 06-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR VIVEK AGGARWAL
• Keywords: Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E . , , , ' BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AW ASTHY, JM . / ITA NO. 2024/PUN/2016 $ $ / ASSESSMENT YEAR : 2012-13 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-3, AURANGABAD. ....... / APPELLANT / V/S. M/S. ZAMBAD INFRASTRUCTURE LTD. MUKUNDWADI JUNCTION, JALNA ROAD, AURANGABAD-431 003 PAN : AAACZ0651M / RESPONDENT APPELLANT BY : DR. VIVEK AGGARWAL RESPONDENT BY : SHRI NEELESH KHANDELWAL / DATE OF HEARING : 16.07.2018 / DATE OF PRONOUNCEMENT : 16.07.2018 / ORDER PER D. KARUNAKARA RAO, AM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF C IT(A)-2, AURANGABAD, DATED 20.06.2016 FOR THE A.Y. 2012-13. 2. GROUNDS RAISED BY THE REVENUE ARE EXTRACTED BELOW : (1) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A), AURANGABAD WAS CORRECT IN DELETING THE ADDITION OF RS.44,85,600/- MADE BY THE AO UNDER SECTION 36(1)(III). 2 ITA NO.2024/PUN/2016 M/S. ZAMBAD INFRASTRUCTURE LTD., (2) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LEARNED CIT(A) AURANGABAD WAS CORRECT IN DELETING THE ADDITION MAD E BY THE AO U/S. 14A OF RS.5,23,569/- (3) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, AURANGABAD M AY BE VACATED AND THE ORDER OF AO MAY BE RESTORED. (4) ON THE FACTS AND CIRCUMSTANCES THE APPELLANT CR AVES LEAVE TO ADD, AMEND OR ALTER ANY GROUNDS OF APPEAL. 3. BRIEFLY STATED RELEVANT FACTS INCLUDES THAT THE ASSESS EE IS A COMPANY ENGAGED IN THE BUSINESS AS BUILDERS AND DEVELOPERS, LAND T RADING, CIVIL CONSTRUCTION AND ALSO RUNNING A MANGAL KARYALAYA. ASSESSE E FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS. NIL AFTER CLAIMING DEDU CTION UNDER CHAPTER VI-A AT RS.63,59,309/-. DURING ASSESSMENT PROCEE DINGS, THE AO ASSESSED THE TOTAL INCOME OF ASSESSEE AT RS.50,09,169/- AND MADE FOLLOWING ADDITIONS: 4. AGGRIEVED WITH THE ASSESSMENT ORDER DATED 26.03.2015 , THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE CIT(A) GRANTED RELIEF TO THE ASSESSEE AND DELETED THE BOTH THE ADDITIONS MADE BY THE ASSESSIN G OFFICER. NOW, THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 5. AT THE OUTSET, LD. AR FOR THE ASSESSEE SUBMITTED THAT THE APPEAL FILED BY THE DEPARTMENT IS LIABLE TO BE DISMISSED ON ACCOUNT O F LOW TAX EFFECT. THE LD. AR POINTED THAT AS PER CBDT CIRCULAR NO.3/2018 DATE D 11 TH JULY, 2018, THE MONETARY LIMIT FOR FILING OF APPEAL BY THE DEPARTMENT BEFO RE THE TRIBUNAL SR. NO. HEADS OF ADDITION AMOUNT IN RS. 1. DISALLOWANCE U/S. 36(1)(III) 44,85,600/- 2. DISALLOWANCE U/S. 14A 5,23,569/- TOTAL 50,09,169/- 3 ITA NO.2024/PUN/2016 M/S. ZAMBAD INFRASTRUCTURE LTD., IS RS.20 LAKHS, THEREFORE, THE APPEAL FILED BY THE DEPARTME NT IS NOT MAINTAINABLE. 6. ON THE OTHER HAND, THE LD. DR FOR THE REVENUE DEFENDE D THE ASSESSMENT ORDER AND PRAYED FOR REVERSING THE FINDINGS O F THE CIT(A). HOWEVER, THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT IN THE PRESENT APPEAL IS LESS THAN RS.20 LAKHS. 7. BOTH SIDES HEARD. A PERUSAL OF THE IMPUGNED ORDER SHOW S THAT THE ADDITION MADE IN THE ASSESSMENT YEAR UNDER CONSIDERATION IS ON ACCOUNT OF INCOME FROM SALE CONSIDERATION AND INTEREST INCOME. THE TOTA L TAX ON DISPUTED ADDITION OF RS.50,09,169/- WORKS OUT TO RS.18,88,276 /-. UNDISPUTEDLY, THE TAX EFFECT IN PRESENT APPEAL IS LESS THAN RS. 20 LAKHS. THE CBDT CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE PENDING APPEALS OF THE DEPARTMENT BEFORE THE TRIBUNAL TOO. THUS, IN VIEW OF THE CBDT CIRCULAR, WE ARE OF THE OPINION THAT THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DIS MISSED ON ACCOUNT OF LOW TAX EFFECT. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 16 TH DAY OF JULY, 2018. SD/- SD/- ( /VIKAS AWASTHY) ( . /D. KARUNAKARA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 16 TH JULY, 2018. SATISH 4 ITA NO.2024/PUN/2016 M/S. ZAMBAD INFRASTRUCTURE LTD., ' ) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS)-2, AURANGABAD. 4. THE PR. CIT-2, AURANGABAD. 5. , , ' , / DR, ITAT, B BENCH, PUNE. 6. % / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.