The DCIT, (OSD), Range-1, Ahmedabad V. Dynamic Industries Ltd., Ahmedabad

ITA 2180/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9192 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 13-01-2017
• Assessment Year: 2002-2003
• Appeal Filed On: 23-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA
• Keywords: Audit objection; Retrospective amendment; Additional evidence; Tax effect
• Section: 80HHC; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 2180/AHD/2013 / ASSESSMENT YEAR : 2002-03 DCIT (OSD), RANGE-1, AHMEDABAD VS DYNAMIC INDUSTRIES LTD, PLOT NO.125, PHASE-1, VATVA, AHMEDABAD PAN : AAACD 9872 E / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI ASHISH POPHARE, DR ASSESSEE BY : SHRI P.M. MEHTA, AR DATE OF HEARING : 1 3/01/2017 DATE OF PRONOUNCEMENT IN COURT : 23/02/20 17 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-III, AHMEDABAD DATED 03.06.2013 FOR AY 2002-2003. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL:- 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS BY ADM ITTING ADDITIONAL EVIDENCE FILED BY THE ASSESSEE WITHOUT ALLOWING A R EASONABLE OPPORTUNITY TO THE AO TO EXAMINE THE SAME. THIS IS IN CONTRAVE NTION OF RULE 46A(3) OF I.T. RULES, 1962. 2. THE CIT(A) HAS ERRED IN LAW AND ON FACT IN ALLOW ING DEDUCTION U/S 80HHC ON EXPORT INCENTIVE DESPITE THE FACT THAT THE ASSESSEE COULD NOT PRODUCE ANY DETAILS OR EVIDENCE OF RECEIVING SUCH E XPORT INCENTIVE DURING ASSESSMENT PROCEEDINGS. 3. THE CIT(A) HAS ERRED IN LAW AND ON FACT IN HOLDI NG THAT INTEREST U/S 234B AND 234D CANNOT BE CHARGED AS THE SAME HAS ARI SEN DUE TO RETROSPECTIVE AMENDMENT OF LAW. THIS IS IN CONTRAV ENTION OF THE ACTUAL PROVISIONS OF SECTION 234B AND 234D OF THE I.T. ACT , 1962. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12 .2015. THE LD. SMC-ITA NO. 2180/AHD/2013 DCIT VS. DYNAMIC INDUSTRIES LTD AY : 2002-03 2 DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR . 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL AVAILABLE ON RECORD. I FIND THAT PRIMA-FACIE THIS APPEAL OF T HE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WH ICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. I FIND THAT THE PRESENT CASE DOES N OT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LACS. THERE FORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 23/02/2017 *BIJU T., SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD