The Dy. Commissioner of Income Tax Circle-2(1)(2), Ahmedabad V. M/s. Kunj Infrastructure Pvt. Ltd., Ahmedabad

ITA 2891/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8282 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 07-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE D CIT, CIR. 2(1)(2) , AHMEDABAD (APPELLANT) VS M/S. KUNJ INFRASTRUCTURE PVT. LTD. 4 TH FLOOR, ZODIAC PLAZA, ST. ZAVIERS CORNER, NAVRANGPURA, AHMEDABD - 380009 PAN: AADCK1900D (RESPONDENT) REVENUE BY : S H RI PRASOON KABRA , SR. D . R. ASSESSEE BY: NONE DATE OF HEARING : 24 - 04 - 2 018 DATE OF PRONOUNCEMENT : 11 - 05 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNT ANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2010 - 11 , AR ISES FROM ORDER OF THE CIT(A) - 2 , AHMEDABAD DATED 22 - 08 - 2016 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE REVEN UE S SOLE SUBSTANTIVE GROUND CHALLENGE S THE LOWER AP PELLATE ORDER DELETING THE ADDITION MADE ON ACCOUNT OF DISALLOW ANCE OF CASH PAYMENT OF RS. 4, 35, 000/ - TOWARDS LEGAL FEES INVOKING PROVISIONS OF SECTION 40A(3) OF THE ACT . THERE IS NO DISPUTE THAT THE NET TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN I T A NO . 2891 / A HD/ 20 16 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 2891/AHD/2016 A.Y. 2010 - 11 PAGE NO D CI T VS. M/S. KUNJ INFRASTRUCTURE PVT. LTD. 2 RS. 10 LACS. WE FIND THAT THE CENTRAL BOARD OF DIRECT TAXES; HEREAFTER THE BOARD HAS ISSUED THE CIRCULAR NO. 2 1/2015 DATED 10 - 12 - 2015 CLEARLY ENVISAGING THEREIN THAT DEPARTMENT S PENDING APPEALS BEFORE THE TRIBUNAL/HIGH COURTS ARE TO BE WIT HDRAWN/NOT PRESSED AS PER THE ABOVE ST ATED CIRCULAR . THE SAME HAS BEEN DECLARED TO BE HAVING RETROSPECTIVE EFFECT IN OTHER WORDS. WE TAKE INTO CONSIDERATION THE ABOVE STATED BOARD S CIRCULAR AND DISMISS THE INSTANT APPEAL ACCORDINGLY. 3. THIS REVENUE S APPEAL IS DISMISSED AS HAVING LOW TAX EFFECT. ORDER PR ONOUNCED IN THE OPEN C OURT ON 11 - 05 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 1 1 /05 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,