The DCIT, Circle-1(1)(1), Ahmedabad V. M/s. Baheti Metal & Ferro Alloys Ltd., Ahmedabad

ITA 2460/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9350 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 07-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P B PARMAR
• Keywords: Tax effect
• Section: 268A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH B BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.2460/AHD/2017 / ASSTT.YEAR : 2014-2015 DCIT, CIR.1(1)(1) AHMEDABAD. VS. BAHETI METAL & FERRO ALLOYS LTD. A-2/3, L.R. APARTMENT OPP: POLICE COMMISSIONERS OFFICE SHAHIBAUG, AHMEDABAD. PAN: AAACB 4626 L ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : SHRI P.B. PARMAR, AR REVENUE BY : SHRI MUDIT NAGPAL, SR.DR / DATE OF HEARING : 27/09/2019 / DATE OF PRONOUNCEMENT: 01/10/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)- 1, AHMEDABAD DATED 30.8.2017 PASSED FOR THE ASSESSM ENT YEAR 2014-15. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE ID.CI T(A) IN DELETING THE DISALLOWANCE OF FCNRB HEDGING CHARGES OF RS.74,68,104/- 3. AT THE OUTSET, THE ID.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE BECAUSE T AX EFFECT ON THE DISPUTED ADDITION IS BELOW RS.50 LAKHS. HE SUBMITTE D THAT BY VIRTUE OF RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBU NAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRUCTION IS APPLICABL E TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE RE VENUE IS LIABLE TO BE DISMISSED AT THE THRESHOLD. THE ID.DR DID NOT DISPU TE APPLICABILITY OF ITA NO.2460/AHD/2017 2 THE RECENT CBDT CIRCULAR AND LEFT TO THE TRIBUNAL T O PASS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL OF THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESE NT APPEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRU CTION CITED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE DISPUTED ADDITION IS MORE THAN RS.50 LAKHS, AND THE REFORE, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECT ION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT AT IN CASE ON RE-VERIF ICATION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX E FFECT IS MORE, OR REVENUE'S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VI EW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX E FFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DI SMISSED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 1 ST OCTOBER, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER