The ITO, Ward-9(4), Surat V. M/s. Sangna Synthetic, Surat

ITA 2758/AHD/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9841 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 15-12-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 16-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DILEEP KUMAR SRDR
• Keywords: Audit objection

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER ./ ITA NO. 2758/AHD/2014 / ASSESSMENT YEAR: 2012-13 INCOME TAX OFFICER, WARD-9(4), SURAT .. APPELLANT VS M/S. SANGNA SYNTHETIC, 78/A-B, 1 ST FLOOR, MAHATMA INDUSTRIAL SOC. KAPODARA, VARACHHA ROAD, SURAT .. RESPONDENT PAN : AAUFS 0633 D REVENUE BY : SHRI DILEEP KUMAR, SR-DR ASSESSEE(S) BY NONE / DATE OF HEARING 1 5 /12/2015 /DATE OF PRONOUNCEMENT 06 / 01 / 201 6 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-V, SUR AT DATED 01.08.2014 FOR ASSESSMENT YEAR 2005-06, ON THE FOLLO WING GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN LAW IN ALLOWING THE ASSESSEE TO WRITE OFF CENVAT CREDIT OF RS.1,75,819/-, WHEN THE ASSESSEE HAD FOLLOWED EXCLUSIVE METHOD OF ACCOUNTING. 2. THE LD. CIT(A) HAS FAILED TO APPRECIATE THE FACT THAT THE CENVAT CREDIT HAS NOT BECOME NIL AS PER GOVERNMENT NOTIFICATION, BUT HAS ONLY BEEN MADE NOT CLAIMABLE TIL L THE EXCISE DUTY ON THE PAYMENT REMAINS NIL. 3. IT IS PRAYED THAT THE ORDER OF THE LD. CIT(A) BE SET ASID E AND THAT OF THE ASSESSING OFFICER BE RESTORED. 2. I HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL PLACED BEFORE ME. I FIND THAT PRIMA-FACI E THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCUL AR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10 TH DECEMBER (SMC) ITA NO. 2758/AHD/2014 ITO VS. SANGNA SYNTHETIC AY 2005-06 2 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EF FECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER I S BELOW RS.10,00,000/-, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PRO VIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SO ME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED FOREI GN ASSETS/BANK ACCOUNTS, ETC. I FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10,00,000/ -. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND H ENCE DISMISSED. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 6TH JANUARY, 2016 AT AHMEDABAD. SD/- ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 06/01/2016 BIJU T., PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / DR, ITAT, AHMEDABAD 6. (- . / GUARD FILE. / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD