The DCIT, Circle-1(1)(1), Ahmedabad V. Bloom Decor Limited, Ahmedabad

ITA 2461/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6333 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2019
• 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
• 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.2461/AHD/2017 / ASSTT.YEAR : 2014-15 DCIT, CIR.1(1)(1) VADODARA. VS. BLOOM DCOR LTD. 2/F, SUMEL BUILDING S.G. HIGHWAY THALTEJ, AHMEDABAD 380015. PAN : AAACB 6221 B ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI MUDIT NAGPAL, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 27/09/2019 ! / DATE OF PRONOUNCEMENT: 03/10/2019 / 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 22.08.2017 PASSED FOR THE ASSESSMENT YEAR 2014-15. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD .CIT(A) IN DELETING DISALLOWANCE OF RS.45,59,000/- MADE ON ACC OUNT OF LOSS ON FORWARD CONTRACT CHARGES AND RS.31,36,411/- MADE ON ACCOUNT OF FOREIGN EXCHANGE FLUCTUATION OF BUYERS CREDIT. 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE OUTSET SU BMITTED THAT QUANTUM OF BOTH THE DISPUTED ADDITIONS RS.76,95,411 /-. THIS ADDITION HAS BEEN DELETED BY THE LD.CIT(A). TAX EFFECT ON THE D ISPUTED ADDITION WOULD BE LESS THAN RS.50 LAKHS. HE SUBMITTED THAT B Y VIRTUE OF RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTM ENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBUNAL W HERE TAX EFFECT IS BELOW ITA NO.2461 /AHD/2017 2 RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIA BLE TO BE DISMISSED AT THE THRESHOLD. PER CONTRA, THE LD.DR DID NOT DISP UTE APPLICABILITY OF THE RECENT CBDT CIRCULAR AND LEFT TO THE TRIBUNAL TO PA SS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE TOTA L DISPUTED ADDITION IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VI EW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCO ME 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 IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHI N THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE A PPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 3 RD OCTOBER, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER