The DCIT, Circle-1, Ahmedabad V. M/s. Absolute Academy Pvt. Ltd., Ahmedabad

ITA 2247/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1126 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 04-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Keywords: Additional evidence; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER , ITA. NO.2247/AHD/2013 (ASSESSMENT YEAR:2008-09) DCIT, CIRCLE-1, AHMEDABAD APPELLANT VS. M/S. ABSOLUTE ACADEMY PVT. LTD., 33, SWASTIK CHAMBERS, NR. NAVJIVAN PRESS, INCOME TAX, AHMEDABAD - 14 RES PONDENT PAN: AAFCA6851R /BY APPELLANT : SHRI ADITYA SHUKLA, SR. D.R. /BY RESPONDENT : SHRI P. F. JAIN, A.R. ! '# /DATE OF HEARING : 13.07.2016 ! '# /DATE OF PRONOUNCEMENT : 14.07.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS)-III, AHMEDA BAD, DATED 28.06.2013 FOR A.Y. 2008-09 ON FOLLOWING GROU NDS. 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS BY NOT APPRECIATING THE FACT THAT THE ONUS OF PROVING THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE ITA NO.2247/AHD/13 A.Y. 08-09[DCIT VS. M/S. ABSOLUTE ACADEMY PVT. LTD.] PAGE 2 CREDITORS WAS ON THE ASSESSEE WHICH WAS NOT DISCHARGED. 2. THE CIT(A) HAS ERRED IN LAW AND ON FACT IN ADMITTING ADDITIONAL EVIDENCES UNDER RULE 46A DESPITE THE FACT THAT AMPLE OPPORTUNITIES WERE PROVIDED TO THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. 2. BEFORE ME, AT THE OUTSET, LD. AUTHORIZED REPRESE NTATIVE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NE EDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE 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 AFO RESAID CBDT CIRCULAR. 2.1 I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APP EAL RAISED BY THE REVENUE, I PRIMA-FACIE FIND THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 ( CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF G IVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS TH E TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECT IVELY TO THE PENDING APPEALS. IN THE PRESENT CASES, SINCE IT IS AN UNDISPUTED FACT THAT ON THE DEMAND WHICH IS IN DISP UTE IN THE APPEAL OF REVENUE, THE TAX EFFECT IS LESS THAN RS.10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUES IN THE PRESE NT ITA NO.2247/AHD/13 A.Y. 08-09[DCIT VS. M/S. ABSOLUTE ACADEMY PVT. LTD.] PAGE 3 APPEAL ARE COVERED BY EXEMPTIONS SPECIFIED IN CLAUS E (8) OF THE CBDT CIRCULAR, I AM OF THE VIEW THAT THE MONETA RY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFOR ESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PR ESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PR ESENT APPEAL OF REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR AN Y REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT W OULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. IN SUCH CIRCUMSTANCES, I DISMISS THE APPEAL OF REVENUE WITH OUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 3. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS THE 14 TH DAY OF JULY, 2016. SD/- (SHAILENDRA KUMAR YADAV) JUDICIAL MEMBER AHMEDABAD: DATED 14/07/2016 TRUE COPY S.K.SINHA ! / COPY OF ORDER FORWARDED TO:- () * / REVENUE 2) / ASSESSEE -)./.01! 2! / CONCERNED CIT 4) 2!- / CIT (A) 5)67 8!019 '019: / / DR, ITAT, AHMEDABAD ;)8 <=> ? / GUARD FILE. BY ORDER / 9 /: .* '019: /