The Assistant Commr. of Income Tax, Morbi Circle, RAJKOT-GUJARAT V. M/s Falcon Glaze Tiles Pvt. Ltd., Wankaner

ITA 224/RJT/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0139 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 18-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND N SONTAKKE
• Assessee Lawyers: RAVI TANNA
• Keywords: Depreciation; Retrospective amendment; Tax effect; Revenue expenditure
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER. ITA NO. 224/RJT/2015 (ASSESSMENT YEAR: 2005-06) ASSISTANT COMMISSIONER OF INCOME-TAX, MORBI CIRCLE, MORBI VS. M/S. FALCON GLAZE TILES PVT. LTD., 8/A, NATIONAL HIGHWAY, AT DHUVA, TAL- WANKANER PAN: AAACF4209M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ARVIND N. SONTAKKE, SR. D.R. RESPONDENT BY : SHRI RAVI TANNA, A.R. DATE OF HEARING : 06-10-20 16 DATE OF PRONOUNCEMENT : 07-10-2016 ( )/ ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR A.Y. 2005-06, ARISES FROM ORDER OF THE CIT(A)-1, RAJKOT, DATED 11.02.2015 IN APPEAL NO. CIT(A) I/RJ T/T047/09-10, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; I N SHORT THE ACT. 2. THE REVENUES SUBSTANTIVE GROUNDS PLEADED IN THE INSTANT APPEAL ARE AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.3,17,068/- MADE ON ACCO UNT OF ESTIMATION OF GROSS PROFIT @ 10%. ITA NO. 224/RJT/2015 (ACIT VS. M/S. FALCON GLAZE TILES PVT. LTD.) A.Y. 2005-06 2 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.9,72,841/- MADE ON ACCO UNT OF DISALLOWANCE OF DEPRECIATION OF DEFERRED REVENUE EXPENDITURE. 3. THERE IS NO DISPUTE THAT THE NET TAX EFFECT IN T HE INSTANT APPEAL IS LESS THAN RS.10 LACS. WE FIND THAT THE CENTRAL BOARD OF DIRE CT TAXES; HEREAFTER THE BOARD HAS ISSUED THE CIRCULAR NO. 21/2015 DATED 10.12.201 5 CLEARLY ENVISAGING THEREIN THAT DEPARTMENTS PENDING APPEALS BEFORE THE TRIBUNAL/HI GH COURTS ARE TO BE WITHDRAWN/NOT PRESSED AS PER THE ABOVE STATED CIRCU LAR. THE SAME HAS BEEN DECLARED TO BE HAVING RETROSPECTIVE EFFECT IN OTHER WORDS. WE TAKE INTO CONSIDERATION THE ABOVE STATED BOARDS CIRCULAR AND DISMISS THE INSTANT APPEAL ACCORDINGLY. 3. THIS REVENUES APPEAL IS DISMISSED AS HAVING LOW TAX EFFECT. [ PRONOUNCED IN THE OPEN COURT ON THIS THE 07 TH DAY OF OCTOBER, 2016 .] SD/- SD/- (AMARJIT SINGH) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 07/10/2016 TRUE COPY S.K.SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJKOT