The Dy. Commissioner of Income Tax, Circle-1(3), Ahmedabad V. KIFS Securities Pvt. Limited, Ahmedabad

ITA 2028/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5607 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 03-10-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 08-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T SHANKAR
• Assessee Lawyers: M K PATEL
• Keywords: Depreciation; Bad and doubtful debts; Tax effect
• Section: 14A

Judgement Text

ITA NO. 2028 /AHD/2017 DCIT VS. KIFS SECURITIES PVT LTD ASSESSMENT YEAR : 2014-15 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH D, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND MANISH BO RAD, ACCOUNTANT MEMBER] ITA NO. 2028/AHD/2017 ASSESSMENT YEAR: 2014-15 DY. COMMISSIONER OF INCOME-TAX CIRCLE-1(3), AHMEDABAD .....APPELLANT VS KIFS SECURITIES PVT LTD ..........RESPOND ENT B-81, PARISEEMA COMPLEX, CG ROAD, AHMEDABAD [PAN : AAACK 6128 Q] APPEARANCES BY T. SHANKAR, FOR THE REVENUE MK PATEL, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : OCTOBER 03, 2019 DATE OF PRONOUNCEMENT : OCTOBER 03, 2019 O R D E R PER JUSTICE P P BHATT, PRESIDENT : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 30 TH JUNE 2017, PASSED BY THE LEARNED CIT(A)-10, AHMEDA BAD FOR THE ASSESSMENT YEAR 2014-15. 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE A S FOLLOWS: (1)THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON TH E FACTS IN DELETING DISALLOWANCE MADE BY AO ON ACCOUNT OF DEPRECIATION & INSURANCE ON VEHICELE RS. 11,04,282/- (2) THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FACTS IN DELETING DISALLOWANCE MADE BY AO U/S 14A R.W.S. 8D(2)(II) OF RS.32,92,710/- (3) THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FACTS IN DELETING DISALLOWANCE MADE BY AO ON ACCOUNT OF BAD DEBTS OF RS.99,54,981/-. 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, LEA RNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NE EDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 WHEREBY THE MONETARY LIMITS FOR FILING THE APPEAL B Y THE REVENUE BEFORE THE TRIBUNAL ITA NO. 2028 /AHD/2017 DCIT VS. KIFS SECURITIES PVT LTD ASSESSMENT YEAR : 2014-15 PAGE 2 OF 3 WAS ENHANCED FROM RS.20 LAKHS TO RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL O F THE REVENUE IS LIABLE TO BE DISMISSED AS NON-MAINTAINABLE AS HELD BY THIS TRIBU NAL IN THE CASE OF ITO VS. DINESH MADHAVLAL PATEL IN ITA NO.1398/AHD/2004 FOR AY 1998-99 VIDE A CONSOLIDATED ORDER DATED 14.08.2019. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRES CRIBED BY THE AFORESAID CBDT CIRCULAR. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLIC ABLE LEGAL POSITION. AS LEARNED COUNSEL RIGHTLY CONTENDS, THIS APPEAL OF THE REVENU E IS NO LONGER MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DAT ED 08.08.2019. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STANDS ENHANCED TO RS.50 LAKHS. THIS CONCESSION GR ANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTIVE IN EFFECT INAS MUCH AS IT APPLIES TO ALL PENDING APPEALS AS WELL. IN VIEW OF THE ABOVE POSITION, TH E APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE AND MUST BE DISMISSED AS SUCH. 6. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFFECT OF MORE TH AN RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WITHIN THE EXEMPTION CLAUSE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERTY TO FILE MISCELLANEOUS AP PLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLICATION SHOULD BE FILED WITHIN TIME LIMIT PRESCRIBED IN THE ACT. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. PRONOUNCED IN THE OPEN COURT TODAY ON THE 3 RD OCTOBER, 2019. SD/- SD/- MANISH BORAD JUSTICE P P BHATT (ACCOUNTANT MEMBER) (PRESIDEN T) AHMEDABAD, DATED THE 3 RD DAY OF OCTOBER, 2019 BT* COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD ITA NO. 2028 /AHD/2017 DCIT VS. KIFS SECURITIES PVT LTD ASSESSMENT YEAR : 2014-15 PAGE 3 OF 3 1. DATE OF DICTATION: ...LOW TAX EFFECT...03.10.201 9.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 03.10.2019....... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: .03.10.2019........ 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: 03.10.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 03.10.2019.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......