The ITO, Ward-4(4), Baroda V. M/s. Zenith Ropes Pvt.Ltd., Baroda

ITA 2294/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9677 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-02-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 11-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Retrospective amendment; Tax effect

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.2294/AHD/2012 WITH CO NO.232/AHD/2012 /BLOCK ASSTT. YEAR: 2003-2004 ITO, WARD-4(4) BARODA. VS M/S.ZENITH ROPES P.LTD. 1085, B/P, LAMDAPURA ROAD MANUSAR, TAL. SAVLI DIST. BARODA 391 280. PAN : AAACZ 0581 A %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI V.K. SINGH, SR.DR ASSESSEE BY : SHRI SURENDRA MODIANI / DATE OF HEARING : 01/02/2016 / DATE OF PRONOUNCEMENT: 02/02/2016 )*/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF LD.COMMISSIONER INCOME-TAX (APPEALS)-III, BARODA DA TED 11.7.2012 PASSED FOR THE ASSTT.YEAR 2003-04. ON RECEIPT OF NOTICE O N THE REVENUES APPEAL, THE ASSESSEE HAS FILED CROSS OBJECTION BEARING NO.232/A HD/2012. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT( A) HAS ERRED IN DELETING THE ADDITION OF RS.8,81,940/- IN RESPECT OF EXPENSE S ON MANUFACTURING AND ITA NO.2294/AHD/2012 WITH CO 2 OTHER EXPENSES AND OF RS.1,84,906/- IN RESPECT OF B ANK INTEREST AND OTHER INTEREST. 3. THE LD.COUNSEL FOR THE ASSESSEE, AT THE OUTSET C ONTENDED THAT THE APPEAL FILED BY THE REVENUE IS NOT ADMISSIBLE, AS THE SAME IS FILED BY THE REVENUE IN VIOLATION OF CBDT CIRCULAR NO.21/2015 DATED 10.12.2 015. BY VIRTUE OF THIS INSTRUCTION, THE BOARD HAS RESTRAINED THE DEPARTMEN T NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE THE TAX EFFECT IS BELOW RS.10 LA KHS. HE SUBMITTED THAT THE TAX EFFECT ON THE IMPUGNED ADDITION IS LESS THAN RS .10,00,000/- AND THEREFORE, APPEAL OF THE ASSESSEE LIABLE TO BE DISMISSED IN LIMINE . THE LD.DR COULD NOT CONTROVERT TO THIS SUBMISSION OF THE LD. COUNSEL FO R THE ASSESSEE. 4. WE FIND THAT THE ASSESSEE HAS FILED ITS APPEAL ON 11.10.2012. ON 10.12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBITING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFEC T BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRE SENT CASE, THE ASSESSED INCOME IS NIL AND ADDITION DELETED BY THE LD.CIT(A) IS RS.8,81,940/- IN RESPECT MANUFACTURING EXPENSES AND RS.13,84,906/- I N RESPECT OF BANK INTEREST AND THEREFORE, THE TOTAL TAX EFFECT ON THESE ADDITI ONS WOULD BE LESS THAN RS.10 LAKHS. THUS, THE PRESENT APPEAL DESERVES TO BE DIS MISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. IT IS FUR THER OBSERVED THAT SINCE, WHILE HEARING THE APPEAL, SUCH FACTORS COULD NOT BE CROSS-VERIFIED, THEREFORE, IN CASE, ON RE-VERIFICATION AT THE END OF THE AO, I T CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR IT FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR ITA NO.2294/AHD/2012 WITH CO 3 RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE F ILED WITHIN FOUR YEARS OF THIS ORDER. IN VIEW OF THE ABOVE, THE APPEAL OF THE REV ENUE IS DISMISSED. 5. SINCE THE ASSESSEE HAS NOT PRESSED ITS CROSS OBJ ECTION FOR ADJUDICATION, THE SAME IS DISMISSED FOR WANT OF PROSECUTION. ORDER PRONOUNCED IN THE COURT ON 2 ND FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( MANISH BORAD ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 02/02/2016