The DCIT, Circle-5, Ahmedabad V. Rajiv Petrochemicals Pvt. Ltd., Ahmedabad

ITA 2195/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1129 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 27-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Assessee Lawyers: PF JAIN
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ././ ./ ITA NO. 2195/AHD/2013 / // / ASSESSMENT YEAR : 2009-10 DICT (OSD), CIRCLE-5, AHMEDABAD VS RAJIV PETROCHEMICALS PVT LTD, 4, RAJIV HOUSE, SMRUTIKUNJ, NAVRANGPURA, AHMEDABAD PAN : AAACR 7289 P / // / (APPELLANT) / // / (RESPONDENT) REVENUE BY : SHRI ADITYA SHUKLA, SR DR ASSESSEE BY : SHRI P.F. JAIN, AR / // / DATE OF HEARING : 12/07/2016 / // / DATE OF PRONOUNCEMENT: 14/07/2016 / // / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-XI, AHMEDABAD DATED 04.06.2013 FOR AY 2009-2010. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL:- (I) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELE TING ADDITION OF RS.30,18,565/- MADE BY THE AO ON ACCOUNT OF SUPPRESS ED PRODUCTION. (II) THE LD. CIT(A) HAS FURTHER ERRED IN LAW AND ON FACT S IN HOLDING THAT THE SHORTAGES SHOWN BY THE ASSESSEE WERE REASONABLE THO UGH THE SAME LINE OF PRODUCTION CONTINUED FOR BOTH THE YEARS UNDER COMPA RISON. 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. 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. SMC-ITA NO. 2195/AHD/2013 DCIT VS. RAJIV PETROCHEMICALS PVT LTD AY : 2009-10 2 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHI CH 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. ORDER PRONOUNCED IN THE COURT ON 14 TH JULY, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 14/07/2016 *BIJU T. / 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