The ITO, Ward- 5(3), Ahmedabad V. M/s. Rightway Solution (India) Pvt. Ltd., Ahmedabad

ITA 2340/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1151 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 25-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Keywords: Tax effect
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ././ ./ ITA NO. 2340/AHD/2013 / // / ASSESSMENT YEAR : 2009-10 INCOME-TAX OFFICER, WARD - 5 (3), AHMEDABAD VS M/S. RIGHTWAY SOLUTION (INDIA) PRIVATE LIMITED, 603/604, 5 TH FLOOR, PARSHWANATH E SQUARE, OPP. PRAHLADNAGAR GARDEN, SATELLITE, AHMEDABAD PAN : AADCR 3686 M / // / (APPELLANT) / // / (RESPONDENT) REVENUE BY : SHRI ADITYA SHUKLA, SR DR ASSESSEE BY : NONE / // / DATE OF HEARING : 11/07/2016 / // / DATE OF PRONOUNCEMENT: 11/07/2016 / // / 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 29.07.2013 FOR ASSESSMENT YEAR 2009-10. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER :- I) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.13,22,929/- ON ACCOUNT OF DISALLOWANCE OF WORK I N PROGRESS U/S 10B OF THE I.T. ACT. II) THE LD. CIT(A) HAS FURTHER ERRED IN LAW AND ON FACTS IN TREATING THE WORK IN PROGRESS AT PAR WITH THE EXPORT SALES AND DIRECTING TO DELETE THE ADDITION MADE BY THE AO WHO EXCLUDED THE WORK IN PROGRESS FRO M THE PROFIT & LOSS ACCOUNT FOR THE PURPOSE OF WORKING OUT DEDUCTION U/S 10B OF THE ACT. III) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME- TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER. IV) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX (A) MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICE R BE RESTORED. 3. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. 4. I HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROU ND OF APPEAL RAISED BY SMC-ITA NO. 2340/AHD/2013 ITO VS. RIGHTWAY SOLUTION (INDIA) PVT LTD AY : 2009-10 2 THE REVENUE, I FIND THAT REVENUE IS AGGRIEVED BY TH E ORDER OF CIT(A) IN DELETING THE ADDITION OF RS.13,22,929/- ON ACCOUNT OF DISALLOWANCE OF WORK IN PROGRESS U/S 10B OF THE ACT AND THE TAX EFFECT O F WHICH 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 DEPAR TMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RET ROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDIS PUTED FACT THAT THE TAX EFFECT IS LESS THAN RS.10 LACS, I AM OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOU LD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, I DISMISS THIS APPEAL OF THE REVENUE WITHOUT EXPRESSING ANY O PINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON 11 TH JULY, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 11/07/2016 *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