The ITO, Ward-1(3), Ahmedabad V. M/s. Arihant Classic Finance Ltd., New Delhi

ITA 2415/AHD/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6158 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 28-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Transactions in derivatives; Retrospective amendment; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIPKUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA.NO.2415/AHD/2014 ASSTT.YEAR : 2009-2010 ITO, WARD-1(3) AHMEDABAD. M/S.ARIHANT CLASSIC FINANCE LTD. C/O. SHRI MAYUR JAIN (DIRECTOR) GB-22, RAJOURI GARDEN SHIVAJI ENCLAVE NEW DELHI 110 027. () / (APPELLANT) *+ () / (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI DINESH SINGH, SR.DR / DATE OF HEARING : 31/01/2018 / DATE OF PRONOUNCEMENT: 01/02/2018 ,-/ O R D E R PER SHRI RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF THE LD.CIT(A)-6, AHMEDABAD DATED 30.6.2014 PASSED FOR T HE ASSTT.YEAR 2009-10. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. THEREFORE, WE PROCEED TO DECIDE THE APPEAL EX PARTE QUA THE ASSESSEE- RESPONDENT. ITA NO.2415/AHD/2014 2 3. SOLE GRIEVANCE OF THE REVENUE IS THAT LD.CIT(A) HAS ERRED IN DELETING VARIOUS DISALLOWANCES MADE BY THE AO AS SET OUT IN THE GROUNDS OF APPEAL. 4. AT THE OUTSET, A QUERY FROM THE BENCH, AS TO ADM ISSIBILITY OF REVENUES APPEAL, IN VIEW OF LATEST CBDT INSTRUCTION, WHEREIN THE CBDT PROHIBITED THE REVENUE FROM FILING OF APPEAL BEFORE THE TRIBUNAL W HERE TAX EFFECT IS BELOW RS.10 LAKHS, THE LD.DR IS UNABLE TO CONTROVERT THE SAME. 5. WE FIND THAT THE REVENUE HAS FILED THE ABOVE APP EALS BEFORE THE TRIBUNAL ON 28.8.2014. AS PER THE LATEST CBDT CIRC ULAR NO.21/2015 DATED 10.12.2015, THE CBDT HAS RESTRICTED THE DEPARTMENT NOT TO FILE APPEAL WHERE TAX EFFECT IS BELOW RS.10 LAKHS BEFORE THE TRIBUNAL . THE LD.CIT(A) DELETED THE FOLLOWING DISALLOWANCE MADE BY THE AO. 1. INTEREST EXPENDITURE (INVESTMENT) : RS.3,68,580/- 2. INTEREST EXPENDITURE U/S.36(1)(III) : RS.11,02,755 /- 3. F&O LOSS : RS.3,27,728/- 4. PRELIMINARY EXPENSES : RS.1,77,078/- 5. SALARY EXPENSES : RS.4,87,625/- TOTAL ADDITION DELETED : RS.24,63,767/- ADMITTEDLY, TAX EFFECT IN THE PRESENT CASE IS BELOW RS.10 LAKHS, AND THEREFORE HIT BY THE ABOVE CBDT CIRCULAR. FURTHER, THE ABOVE CIRCULAR HAS RETROSPECTIVE EFFECT, AND THEREFORE, APPEAL OF THE REVENUE PENDIN G AS ON THE DATE AND FALL WITHIN THE MONETARY LIMIT, IS ALSO COVERED BY THE C IRCULAR, AND THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE. IT IS, ACCORDI NGLY, DISMISSED. 6. IT IS FURTHER OBSERVED THAT IF ON RE-VERIFICATIO N AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR I T FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DE PARTMENT WILL BE AT LIBERTY ITA NO.2415/AHD/2014 3 TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 1 ST FEBRUARY, 2018 AT AHMEDABAD. SD/- SD/- (PRADIPKUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER