DCIT, C-1(1), Chandigarh V. M/s Khandelia Udyog Pvt. Ltd., Chandigarh

ITA 249/CHANDI/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8469 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 08-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VEENA JOSHI
• Assessee Lawyers: AMRINDER SINGH
• Keywords: Question of law; Tax effect
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A CHANDIGARH , ! , ' # $ % & , '( ! BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 249/CHD/2019 / ASSESSMENT YEAR : 2014-15 THE ACIT, CIRCLE 1(1), CHANDIGARH. VS M/S KHANDELIA UDYOG PVT. LTD., PLOT NO. 23, INDL. AREA-II, CHANDIGARH. ./ PAN /TAN NO: AABCK7237P / APPELLANT / RESPONDENT / REVENUE BY : SMT. VEENA JOSHI, CIT-DR / ASSESSEE BY : SHRI AMRINDER SINGH, ADVOCATE ! ' / DATE OF HEARING : 11.07.2019 #$%& ' / DATE OF PRONOUNCEMENT : 16.07.2019 ') / ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE W HEREIN THE CORRECTNESS OF THE ORDER DATED 14.12.2018 OF CIT(A) -1, CHANDIGARH PERTAINING TO 2014-15 ASSESSMENT YEAR HAS BEEN ASSAILED ON VAR IOUS GROUNDS WHEREIN THE ADDITION OF RS. 7,82,766/- MADE BY THE AO HAS B EEN DELETED IN APPEAL. 2. THE LD. AR INVITING ATTENTION TO THE COPY OF THE GROUNDS FILED SUBMITTED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED ON THE GROUND OF LOW TAX EFFECT WHICH IS SHOWN TO BE RS. 2,41,874/-. TIME W AS GIVEN TO THE LD. CIT-DR TO CONSIDER THE SUBMISSIONS. 3. ON A READING OF THE IMPUGNED ORDER, IT WAS SEEN THAT IN COLUMN NO. 7 THE INCOME TAX DEMANDED PURSUANT TO THE ORDER OF TH E AO IS SHOWN TO BE RS. 4,29,540/-: ITA 249/CHD/2019 A.Y. 2014-15 PAGE 2 OF 3 IN THE OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I, CHANDIGARH APPEAL NO. 10523/16-17 DATE OF ORDER: 14.12.2018 1. ASSESSMENT YEAR 2014-15 2. DATE OF INSTITUTION 14.12.2016 3. PERMANENT ACCOUNT NUMBER AABCK7237P 4. NAME & RANK OF THE ASSESSING OFFICER MS. DEEPIKA MOHAN DCIT, CIRCLE-1(1), CHANDIGARH 5. NAME & ADDRESS OF THE APPELLANT M/S KHANDELIA UDYOG PVT. LTD. PLOT NO.23, INDUSTRIAL AREA, PHASE-LL, CHANDIGARH 6. INCOME ASSESSED RS.4,55,29,800/- 7. INCOME TAX DEMAND RS.4,29,540 8. SECTION UNDER WHICH ORDER APPEALED AGAINST WAS PASSED 143(3) OF THE INCOME TAX ACT, 1961 9. DATES OF HEARING AS PER RECORDS 10. PRESENT FOR THE APPELLANT SH. RAVINDER KRISHAN, ADVOCATE 11. PRESENT FOR THE DEPARTMENT NONE 4. THE LD. CIT-DR ON GOING THROUGH THE MATERIAL AV AILABLE ON RECORD IN THE CIRCUMSTANCES FAIRLY ADMITTED THAT THE DEPARTMENTS APPEAL IS COVERED BY THE CBDT CIRCULAR NO. 3/2018. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY THE TAX EFFECT INVOLVED IS MU CH BELOW THE LIMIT SET BY THE REVENUE FOR FILING OF APPEAL BEFORE THE ITAT. CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS REVISED THE MONETARY LIMIT UPT O RS.20 LACS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL AND F URTHER VIDE PARA 13 OF THE SAID CIRCULAR IT HAS BEEN CLARIFIED THAT SAID CIRCU LAR IS APPLICABLE RETROSPECTIVELY TO THE PENDING APPEALS ALSO. THE HONBLE PUNJAB & H ARYANA HIGH COURT IN THE CASE OF PRINCIPAL CIT OF INCOME TAX VS. SURINDER KU MAR SINGHAL ITA NO 406- 2016 (O&M) VIDE ORDER DATED 30.1.2017 WHILE FURTHER RELYING UPON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. DHANALEKSHMI BANK LTD. (2015) 373 ITR 526 (SC), HAS DISMISSED THE APPEAL O F THE REVENUE WITHOUT GOING INTO THE MERITS DUE TO LOW TAX EFFECT LEAVING THE QUESTION OF LAW OPEN. ACCORDINGLY, IN VIEW OF THE ABOVE, THE APPEAL OF TH E REVENUE IS DISMISSED ON THE GROUNDS OF LOW TAX EFFECT IN TERMS OF THE AFORESAID CIRCULAR OF THE CBDT BY WHICH THE TAX AUTHORITIES ARE BOUND. THE APPEAL OF THE REVENUE, ACCORDINGLY, IS DISMISSED AS NOT PRESSED. 6. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT( A) ON MERITS. THE LEGAL ISSUE ITA 249/CHD/2019 A.Y. 2014-15 PAGE 3 OF 3 RAISED BY THE REVENUE IS BEING LEFT OPEN TO BE ADJU DICATED IN AN APPROPRIATE CASE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JULY,2019. SD/- SD/- ( ' # $ % & ) ( ) (ANNAPURNA GUPTA) (DIVA SINGH) '( ! / ACCOUNTANT MEMBER ! / JUDICIAL MEMBER # ' $( )* +* / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. , / CIT 4. , ( )/ THE CIT(A) 5. *-. / , ' / , 012.3 / DR, ITAT, CHANDIGARH 6. .2 4! / GUARD FILE $( / BY ORDER, 5 / ASSISTANT REGISTRAR