DCIT CIRCLE-2(1)(1), AGRA V. MADHUSUDAN MOTORS P LTD, AGRA

ITA 243/AGR/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8506 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 06-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: E PASS ROAD AGRA PAN AAACCMN
• Keywords: Tax effect

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI LALIET KUMAR, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER ITA NOS. 243, 244 & 245/AGR/2018 ASSESSMENT YEARS: 2012-13, 2013-14 & 2014-15 DCIT, CIRCLE 2(1)(1), AGRA. (APPELLANT) VS. M/S. MADHUSUDAN MOTORS (P) LTD. B-5, LAWYERS COLONY, BYE PASS ROAD, AGRA. (PAN: AAACCM7645N) (RESPONDENT) APPELLANT BY SHRI RAJESH MALHOTRA, C.A. RESPONDENT BY SHRI WASEEM ARSHAD, SR. DR ORDER PER BENCH: THESE APPEALS ARE FILED BY THE REVENUE RAISING TH E FOLLOWING COMMON GROUNDS : 1. THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON F ACTS IN DELETING THE ADDITION OF RS.38,37,000/- MADE BY AO ON ACCOUNT OF DISALLOWANCE U/S. 36(1)(III) OF THE ACT WITHOUT APPRECIATING THE FACT THAT THE A SSESSEE UTILIZED INTEREST BEARING FUNDS TO MAKE INTEREST FREE ADVANCES TO REL ATED PERSONS/MUTUAL CONCERNS WITHOUT ANY BUSINESS REQUIREMENT. 2. THAT THE ORDER OF LD. COMMISSIONER OF INCOME TAX ( APPEALS) BEING ERRONEOUS IN LAW AND ON FACTS DESERVES TO BE QUASHE D AND THAT OF THE ASSESSING OFFICER DESERVES TO BE RESTORED. 2. FROM THE PERUSAL OF THE GROUNDS OF APPEAL, IT IS CLEAR THAT THE TAX EFFECT INVOLVED IN EACH OF THESE APPEALS IS BELOW THE LIMI T OF RS.20 LAKHS, PRESCRIBED BY DATE OF HEARING 03.07.2019 DATE OF PRONOUNCEMENT 03 .07.2019 ITA NOS. 243, 244 & 245/AGR/2018 2 CBDT CIRCULAR NO. 3/2018, DATED 11 TH JULY, 2018, WHICH IS APPLICABLE EVEN TO THE PENDING APPEALS. THUS, GOING BY THE PRESCRIPTION OF CIRCULAR NO. 3/2018, DATED 11TH JULY, 2018, WE ARE OF THE VIEW THAT THE REVENUE SHO ULD HAVE EITHER NOT FILED THE INSTANT APPEALS BEFORE THE TRIBUNAL OR WITHDRAWN TH E SAME, AS THE TAX EFFECT IN THESE APPEALS IS ADMITTEDLY LESS THAN THE PRESCRIBED LIMI T, I.E., RS. 20,00,000/-. ACCORDINGLY, WE DISMISS THE APPEALS FILED BY THE RE VENUE AS NON-MAINTAINABLE. 3. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DR. MITHA LAL MEENA) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: *AKS* COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA