The ITO, Ward-6(4), Surat V. M/s. Sagar Agro Industries, Surat

ITA 2525/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1542 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 23-05-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 10-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD , , ! BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ I.T.A. NO.2525/AHD/2011 ( / ASSESSMENT YEAR : 2006-07) ITO WARD 6(4) AAYAKAR BHAVAN MAJURA GATE, SURATE / VS. M/S.SAGAR AGRO INDUSTRIES AT & POST SARBHAN TAL: BARDOLI, DIST.SURAT-394 601 & ./ ./ PAN/GIR NO. : AAJFS 9008 B ( &) / APPELLANT ) .. ( *+&) / RESPONDENT ) &), / APPELLANT BY : SHRI DINESH SINGH, SR.DR *+&) -, / RESPONDENT BY : NONE . - / DATE OF HEARING 23/05/2016 /012 - / DATE OF PRONOUNCEMENT 23/05/2016 / O R D E R PER SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-IV, SURAT DATED 08/06/2011 FOR THE ASSESSMENT YEAR 2006-07. 2. THE GROUNDS RAISED BY THE REVENUE READS AS UNDER :- 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A)-IV, SURAT HAS ERRED IN DELETING THE ADDITION OF ITA NO.2525/AHD /2011 ITO VS. M/S.SAGAR AGRO INDUSTRIES, SURAT ASST.YEAR 2006-07 - 2 - RS.14,83,096/- MADE BY THE ASSESSING OFFICER ON ACC OUNT OF SALE OF HUSK. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A)-IV, SURAT HAS ERRED IN DELETING THE ADDITION OF RS.8,40,257/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF FALL IN GROSS PROFIT. 3. ON THE DATE OF HEARING, NONE APPEARED ON BEHALF OF ASSESSEE NOR ANY ADJOURNMENT APPLICATION WAS FILED ON THEIR BEHA LF. WE THEREFORE PROCEED TO DECIDE THE APPEAL EX-PARTE QUA THE ASSESSEE. 4. THE LD. D.R. FAIRLY ADMITTED THAT THE TAX EF FECT ON THE IMPUGNED ADDITIONS IS LESS THAN THE LIMIT PRESCRIBED BY THE CBDT CIRCULAR OF 10.12.2015 BEARING NO. 21 OF 2015. 5. WE HAVE HEARD THE LD. D.R. AND PERUSED THE MATER IAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENU E, WE FIND THAT REVENUE IS AGGRIEVED BY THE ADDITION OF RS.23,23,35 3/- (RS.14,83,096 + RS.8,40,257) THE TAX EFFECT OF WHICH IS BELOW RS. 10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT ) DATED 10.12.2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS R S. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTI VELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISP UTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS L ESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REV ENUE TO DEMONSTRATE ITA NO.2525/AHD /2011 ITO VS. M/S.SAGAR AGRO INDUSTRIES, SURAT ASST.YEAR 2006-07 - 3 - THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ARE O F THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF TH E AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. IN SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REV ENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 23 /05/2016 SD/- SD/- ( ) () (SHAILENDRA KUMAR YADAV) ( ANIL CHATUR VEDI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 23/ 05 /2016 5..,.../ T.C. NAIR, SR. PS ITA NO.2525/AHD /2011 ITO VS. M/S.SAGAR AGRO INDUSTRIES, SURAT ASST.YEAR 2006-07 - 4 - !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. &) / THE APPELLANT 2. *+&) / THE RESPONDENT. 3. 678 9 / CONCERNED CIT 4. 9 ( ) / THE CIT(A)-IV, SURAT 5. :;<*78 , 78 2 , 6 / DR, ITAT, AHMEDABAD 6. <>?. / GUARD FILE. / BY ORDER, +:* //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 23.5.16(COVERED MATTER) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 23.5.16 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 23.5.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23.5.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER