The DCIT, Circle-4, Ahmedabad V. G.V.F.L. Ltd., Ahmedabad

ITA 2396/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0883 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 03-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RICHA RASTOGI
• Assessee Lawyers: GULAB M THAKOR
• Keywords: Audit objection; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO. 2396/AHD/2013 / ASSESSMENT YEAR : 2009-10 DCIT, CIRCLE-4, AHMEDABAD VS G.V.F.L. LTD., 1 ST FLOOR, PREMCHAND HOUSE, B/H POPULAR HOUSE, ASHRAM ROAD, AHMEDABAD PAN : AAACG 7778 G / (APPELLANT) / (RESPONDENT) REVENUE BY : MS. RICHA RASTOGI, SR DR ASSESSEE BY : SHRI GULAB M. THAKOR, ADVOCATE / DATE OF HEARING : 03/08/2016 / DATE OF PRONOUNCEMENT: 17/08/2016 / O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER :- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-VIII, AHMEDABA D DATED 18.07.2013 FOR ASSESSMENT YEAR 2009-10. 2. THE SOLE GROUND RAISED BY THE REVENUE READS AS U NDER:- THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN ALLO WING EXPENSES INCURRED FOR RAISING FUNDS FOR SME FUNDS OF RS.17,12,404/- W HICH WAS REJECTED BY THE ASSESSING OFFICER WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. 3. AT THE TIME OF HEARING BEFORE US, THE LD. AUTHOR IZED REPRESENTATIVE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NE EDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCU LAR NO.21 OF 2015 DATED 10.12.2015. HE HAS ALSO SUBMITTED THAT IN THE PRES ENT CASE THE TAX EFFECT IS RS. 5,29,133/- WHICH IS BELOW THE PRESCRIBED LIMIT OF RS.10 LACS AND HE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. ITA NO. 2396/AHD/2013 DCIT VS. - GVFL LTD AY : 2009-10 2 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF TH E REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 I N F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHI CH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE CO MMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREI N IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED F OREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS ADMITTEDLY LESS THA N RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DI SMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 17 TH AUGUST, 2016 AT AHMEDABAD. SD/- SD/- (S. S. GODARA) JUDICIAL MEMBER (AMARJIT SINGH) ACCOUNTANT MEMBER AHMEDABAD; DATED 17/08/2016 *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