Income-tax Officer, V. Sai Softech Services Pvt. Ltd., Pune

ITA 2503/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4325 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 27-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SHWETA MISHRA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 2503 /P U N/201 6 / ASSESSMENT YEAR : 20 1 0 - 11 THE INCOME TAX OFFICER, WARD 6(1), PUNE ....... / APPELLANT / V/S. SAI SOFTECH SERVICES PVT. LTD., DSK GANDHARV HOUSE, 4 TH FLOOR, GANESHKHIND ROAD, SHIVAJINAGAR, PUNE 411005 PAN : AACCS3890F / RESPONDENT ASSESSEE BY : SHRI KISHOR PHADKE REVENUE BY : MRS. SHWETA MISHRA / DATE OF HEARING : 01 - 08 - 201 8 / DATE OF PRONOUNCEMENT : 01 - 08 - 201 8 / ORDER PER VIKAS AWASTHY, JM : TH E APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 4, PUNE DATED 30 - 07 - 2016 FOR THE ASSESSMENT YEAR 20 1 0 - 11. 2 ITA NO . 2503/PUN/2016, A.Y. 2010 - 11 2. SHRI KISHOR PHADKE APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018. THE LD. COUNSEL FOR THE ASSESSEE HAS FURNISHED WORKING OF TAX EFFECT INVOLVED IN THE APPEAL. ACCORDING TO THE WORKING, TAX EFF ECT IS RS.18,40,254/ - INCLUDING SURCHARGE AND CESS . 3. MRS. SHWETA MISHRA REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.20 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINS T THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETING THE DISALLOWANCE OF FOREIGN EXCHANGE LOSS RS.54,14,103/ - . UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR FOR FILING OF A PPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL 3 ITA NO . 2503/PUN/2016, A.Y. 2010 - 11 TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR (SUPRA) . 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 01 ST DAY OF AUGUST, 2018. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 01 ST AUGUST, 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4, PUNE 4. THE PR. CIT - 3, PUNE 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE