Assistant Commissioner of Income tax, V. M/s. Powercraft Electronics Pvt.Ltd., Kolhapur

ITA 2608/PUN/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2265 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 16-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRI
• Keywords: Tax effect
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE , , , BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 2608 /P U N/201 6 / ASSESSMENT YEAR : 20 10 - 11 ASSISTANT COMMISSIONER OF INCOME TAX, ICHALKARANJI CIRCLE, ICHALKARANJI ....... / APPELLANT / V/S. M/S. POWERCRAFT ELECTRICALS PVT. LTD., PLOT NO. 23 & 24, PHASE NO. 1, SECTOR - I, LAXMI SAH. AUDYOGIK VASAHAT, HATKANANGALE, DISTT. - KOLHAPUR PAN : AABCP2245G / RESPONDENT ASSESSEE BY : SHRI M.K. KULKARNI REVENUE BY : SHRI PANKAJ GARG / DATE OF HEARING : 12 - 11 - 2018 / DATE OF PRONOUNCEMENT : 12 - 11 - 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) - 2, KOLHAPUR DATED 29 - 09 - 2016 FOR THE ASSESSMENT YEAR 2010 - 11. 2 ITA NO . 2608/PUN/2016, A.Y. 2010 - 11 2. SHRI M.K. KULKARNI 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 CBDT CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018. THE LD. COUNSEL FOR THE ASSESSEE ALSO FILED WORKING OF TAX EFFECT INVOLVED. AS PER THE WORKING SHEET FURNISHED BY THE LD. COUNSEL THE TOTAL TAX EFFECT INCLUDING SURCHARGE IS RS.13,33,300/ - . 3. SHRI PANKAJ GARG REPRESENTING THE DEPARTMENT FAIRLY ADMI TTED 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 AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETING THE ADDITION MADE ON ACCOUNT OF UNPROVED PURCHASES R S.38,72,036/ - U/S. 69C OF THE ACT. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR FOR FILING OF APPEALS 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 TRIBUN AL. 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 . 2608/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 OPE N COURT AT THE TIME OF HEARING ON MONDAY, THE 12 TH DAY OF NOVEMBER, 2018. SD/ - SD/ - ( / ANIL CHATURVEDI ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 12 TH NOVEMBER, 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 2, KOLHAPUR 4. / THE PR. CIT - II, KOLHAPUR 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE