The DCIT, Circle-4(1)(1), Ahmedabad V. M/s. SPX Flow Technology (India) Pvt. Ltd., Ahmedabad

ITA 2441/AHD/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2737 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 27-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Assessee Lawyers: P B PARMAR
• Keywords: Depreciation; Tax effect
• Section: 143(3)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 2441/AHD/2016 ( ASSESSMENT YEAR : 2011-12) DY. COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), AHMEDABAD / VS. M/S. SPX FLOW TECHNOLOGY (INDIA) PVT. LTD. SURVEY NO. 275, OPP. MURLIDHAR SOCIETY, ODHAV ROAD, ODHAV, AHMEDABAD - 382415 ./ ./ PAN/GIR NO. : AAACS7234B ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. K. DEV, SR. D.R. / RESPONDENT BY : SHRI P. B. PARMAR, A.R. DATE OF HEARING 26/10/2018 !'# / DATE OF PRONOUNCEMENT 02/11/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8, AHMEDABAD (CIT(A) IN SHORT), DATED 08.07.2016 ARISING IN THE ASSESSMENT ORDER DATED 24.02.2015 PA SSED BY THE ITA NO.2441/AHD/16 [DCIT VS. M/S. SPX FLOW TECHNOLO GY (INDIA) PVT. LTD.] A.Y. 2011-12 - 2 - ASSESSING OFFICER (AO) UNDER S. 143(3) R.W.S. 144C( 1) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING ASSESSMEN T YEAR 2011- 12. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. WHETHER THE LD. CIT(APPEAL) IS RIGHT IN LAW AN D ON FACTS IN ALLOWING THE DEPRECIATION AT 60% ON SOFTWARE UNDER CONSIDERATION INSTEAD OF 25%. 2. WHETHER THE LD. CIT(APPEAL) IS RIGHT IN LAW AND ON FACTS IN DELETING THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE U/S.145A O F RS.34,44,193/-. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE I S HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, 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 ITA NO.2441/AHD/16 [DCIT VS. M/S. SPX FLOW TECHNOLO GY (INDIA) PVT. LTD.] A.Y. 2011-12 - 3 - 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/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 02/11/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 02/11/201 8