The ACIT, Circle-1(1)(2), Vadodara V. M/s. Jyoti Ltd., Vadodara

ITA 2097/AHD/2016

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2791 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 11-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Tax effect
• Section: 115JB

Judgement Text

आयकर य कर , हमदाबाद याय ‘ड ’ हमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No. 2097/Ahd/2016 Assessment Year : 2006-07 The ACIT, Circle 1(1)(2), Vadodara Vs M/s. Jyoti Ltd., Nanubhai Amin Marg, Industrial Area, Vadodara-390003 PAN : AAACJ 4909 N ा / (Appellant) य / (Respondent) Assessee by : Shri Manish J. Shah, Advocate Revenue by : Shri Mohd Usman, CIT-DR & Shri Purushottam Kumar, Sr. DR /Date of Hearing : 09/05/2022 /Date of Pronouncement: 09/05/2022 आदेश / O R D E R PER P.M. JAGTAP, VICE-PRESIDENT : The Revenue is in appeal before the Tribunal against the order of the learned Commissioner of Income-Tax (Appeals)-1, Vadodara dated 31.05.2016 passed for Assessment Year 2006-07. 2. The grounds taken by the Revenue are as follows:- “1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made by the A.O. in the assessment order, i.e. addition made on account of deferred tax in the computation of book profit and under Section 115JB of the Act. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the AO to calculate lower of the carried forward business loss or depreciation as per book profit as against lower of the carried forward business of loss or depreciation as per computation of income under I.T. Act for the purpose of computation of book profit under provision of Section 115JB..” ITA No. 2097/Ahd/2016 ACIT Vs. M/s. Jyoti Ltd AY : 2006-07 2 3. At the outset, the learned Counsel for the assessee submitted that the appeal of the Revenue needs to be dismissed on account of low tax effect in view of the CBDT Circular No. 17 of 2019 dated 08.08.2019. The ld. Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular. 4. Having heard the learned Departmental Representative and having perused the material on record, we find that this appeal of the Revenue is no longer maintainable in view of the CBDT Circular No. 17 of 2019 dated 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 granted by the Central Board of Direct Taxes (CBDT) is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and is dismissed as such. 5. It is, however, made clear that on re-verification at the end of the Assessing Officer if it comes out that the tax effect of more than 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 Application to recall the Tribunal order. The application should be filed within the time limit prescribed in the Act. 6. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the open Court on 9 th May, 2022 at Ahmedabad. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (P.M. JAGTAP) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad, Dated 09/05/2022 *Bt ITA No. 2097/Ahd/2016 ACIT Vs. M/s. Jyoti Ltd AY : 2006-07 3 /Copy of the Order forwarded to : 1. ! / The Appellant 2. "# ! / The Respondent. 3. $%$&' # # ( / Concerned CIT 4. # # ( ) (/ The CIT(A)- 5. + , # &' , # # &' /DR,ITAT, Ahmedabad, 6. , ./ 0 /Guard file. / BY ORDER, TRUE COPY ह # $ज (Asstt. Registrar) # # &' ITAT, Ahmedabad 1. Date of dictation- ...10.05.2022- low tax effect.... 2. Date on which the typed draft is placed before the Dictating Member ......10.05.2022...... Other member ...10.05.2022.................. 3. Date on which the approved draft comes to the Sr.P.S./P.S. - ...10.05.2022............... 4. Date on which the fair order is placed before the Dictating Member for Pronouncement ... 10.05.2022 5. Date on which the file goes to the Bench Clerk...10.05.2022......... 6. Date on which the file goes to the Head Clerk.................................. 7. The date on which the file goes to the Assistant Registrar for signature on the order..................... 8. Date of Despatch of the Order..................