The Assistant Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad V. M/s. Infinium Motors Pvt. Ltd., Ahmedabad

ITA 2381/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6340 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 01-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Commercial expediency
• Section: 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 2381/AHD/2017 ( / ASSESSMENT YEAR: 2013-14) ACIT CRICLE-2(1)(1), AHMEDABAD ROOM NO. 103, FIRST FLOOR, NAVJEEVAN TRUST BUILDING, AHMEDABAD- 380014 / VS. M/S. INFINIUM MOTORS PVT. LTD. 909, 9 TH FLOOR, SHTITIRATNA PANCHWATI, C.G. ROAD, AHMEDABAD- 380006 ./ ./PAN/GIR NO. : AAA CI4 684 B ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MUDIT NAGPAL, SR. DR / RESPONDENT BY: NONE !' /DATE OF HEARING 23/09/2019 #$!' / DATE OF PRONOUNCEMENT 15/10/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2013-14, A RISE FROM ORDER OF THE CIT(A)-2, AHMEDABAD DATED 09.08.2017, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE U/S. 36(1)(III) OF THE IT ACT. 1.1 THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT IN THE CASE OF S A BUILDERS THE APEX COURT HAD DECIDED THE MATTER IN THE FAVOUR OF THE ASSESSEE OWING TO COMMERCIAL EXPEDIENCY WHER EAS IN THE INSTANT CASE, SUCH ELEMENT IS NON-EXISTENT. ITA NO. 2381/AHD/2017( ACIT VS. M/S. INFINIUM MOTORS PVT. LTD.) A.Y. 2013-14 2 1.2 THE ONUS LIES ON THE ASSESSEE TO DEMONSTRATE TH AT IT HAD INTEREST FREE FUNDS AVAILABLE WITH IT FOR MAKING SU CH ADVANCES AND NOT THE OTHER WAY AROUND. 1.3 THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT AS PER SECTION 106 OF EVIDENCE ACT, WHEN ANY FACT IS ESPECIALLY WI THIN THE KNOWLEDGE OF ANY PERSON, THE BURDEN OF PROVING THE FACT IS UPON HIM. 2. THE APPELLANT CRAVES TO LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND, WHICH MAY BE NECESSARY. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 15/10/2019 TANMAY, SR. PS TRUE COPY THIS ORDER PRONOUNCED IN OPEN COURT ON 15/10/2019 ITA NO. 2381/AHD/2017( ACIT VS. M/S. INFINIUM MOTORS PVT. LTD.) A.Y. 2013-14 3 / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 24.09.2019 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER .09.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. .09.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .09.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S .09.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 21.10.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER