The Asstt. CIT, Circle-7(2), Ahmedabad V. M/s. Shah Industries, Ahmedabad

ITA 2299/AHD/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5270 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 06-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

ITA NO. 2299/AHD/2016 ACIT VS/ SHAH INDUSTRIES ASSESSMENT YEAR : 2012-13 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR, VP AND MS. MADHUMITA ROY, JM] ITA NO. 2299/AHD/2016 ASSESSMENT YEAR: 2012-13 ASST. COMMISSIONER OF INCOME-TAX ............ ......APPELLANT CIRCLE-7(2), AHMEDABAD VS. SHAH INDUSTRIES ............................RESPONDENT C-1/270, GIDC ESTATE, NARODA, AHMEDABAD -382330 [PAN : AAFFS 9157 H] APPEARANCES BY: SK DEV, FOR THE APPELLANT TUSHAR P. HEMANI, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 17.01.2019 DATE OF PRONOUNCING THE ORDER : 29.01.2019 O R D E R PER PRAMOD KUMAR, VICE PRESIDENT : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 1 ST JUNE 2016, PASSED BY THE LEARNED CIT(A)-7, AHMEDAB AD FOR THE ASSESSMENT YEAR 2012-13, ON THE FOLLOWING GROUNDS: 1. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FA CTS IN DELETING THE ADDITION RS.7,32,896/- MADE BY THE AO U/S. 28(IIIB) OF THE L .T. ACT. 2. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FA CTS IN DELETING THE ADDITION OF RS. 19,26,348/- MADE BY THE AO U/S.145A OF THE L .T. ACT. 3. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACT S IN ALLOWING THE DISALLOWANCE OF RS.9,74,550/- MADE U/S.43 (5) OF TH E L.T. ACT. 4. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACT S IN ALLOWING THE DISALLOWANCE OF RS.5,87,417/- ON ACCOUNT OF DEPRECI ATION, INTEREST AND INSURANCE ON ASSETS. 5. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACT S IN ALLOWING THE DISALLOWANCE OF RS.35,807/- MADE ON ACCOUNT OF VEHI CLE REPAIRS EXPENSES. 6. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACT S IN ALLOWING THE DISALLOWANCE OF RS.84,234/- MADE BY THE AO OUT OF E NTERTAINMENT EXPENSES. ITA NO. 2299/AHD/2016 ACIT VS/ SHAH INDUSTRIES ASSESSMENT YEAR : 2012-13 PAGE 2 OF 3 7. THAT THE DEPARTMENT CRAVES LEAVE TO ADD OR ALT ER ANY FURTHER GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING. 2. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED 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.3 OF 2018 DATED 11.07.2018. TH E LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR . 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 3/2018 IN F.NO .279/MISC. 142/2007-ITJ (PT) DATED 11 TH JULY, 2018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPEALS SHOULD BE FILED BEFORE THE TRI BUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTR UCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLIC ABLE, WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPA RTMENT OR WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTA INABLE AND HENCE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 29 TH JANUARY, 2019. SD/- SD/- MS. MADHUMITA ROY PRA MOD KUMAR (JUDICIAL MEMBER) (VICE PRESIDENT) AHMEDABAD, THE 29 TH DAY OF JANUARY, 2019 *BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD