The DCIT, Circle-4(1)(1), Ahmedabad V. SAL Steel Ltd., Ahmedabad

ITA 2908/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6316 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 43B; 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 2908/AHD/2017 ( ASSESSMENT YEAR : 2012-13) D.C.I.T. CIRCLE 4(1)(1), AHMEDABAD / VS. SAL STEEL LTD. 5/1, SHREEJI HOUSE, B/H. M. J. LIBRARY, ASHRAM ROAD, AHMEDABAD - 380006 ./ ./ PAN/GIR NO. : AAHCS8284J ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MUDIT NAGPAL, SR. D.R. / RESPONDENT BY : SMT. URVASHI SHODHAN, A.R. DATE OF HEARING 11/10/2019 !'# / DATE OF PRONOUNCEMENT 24/10/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-8, AHMEDABAD (CIT(A) IN SHORT), DATED 0 4.12.2017 ARISING IN THE ASSESSMENT ORDER DATED 27.03.2015 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY. 2012-13. ITA NO. 2908/AHD/17 [DCIT VS.SAL STEEL LTD.] A.Y. 2012-13 - 2 - 2. THE SUBSTANTIVE GROUNDS OF APPEAL RAISED BY THE REVENUE READ AS UNDER:- 1. 'THAT THE LD. CIT(APPEALS) ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE U/S, 43B OF THE INC OME TAX ACT, 1961 AMOUNTING TO OF RS. 78,77,013/-.' 2. 'THAT THE LD. CIT(APPEALS) ERRED IN LAW AND ON FACTS IN NOT APPRECIATING THE FACT POINTED OUT BY THE A.O. AT PARA NO. 4.4 IN ASS ESSMENT ORDER, THAT THE ASSESSEE COMPANY FAILED TO PRODUCE ANY DOCUMENTARY EVIDENCE WHETHER THE PAYMENTS TOWARDS THE LIABILITY WAS MADE BEFORE THE DATE OF FILING OF RETURN OF INCOME FOR THE ASSESSMENT YEAR UNDER CONSIDERATI ON. ' 3. 'THAT THE LD. CIT (APPEALS) ERRED IN LAW AND ON FACTS IN NOT APPRECIATING THAT ANNEXURE 'D' OF THE TAX AUDIT REPORT CLEARLY M ENTIONS THE AMOUNTS ADDED BY THE A.O. AS DEBITED TO THE PROFIT & LOSS A CCOUNT BUT UNPAID TILL THE DATE OF AUDIT REPORT, AND NO CORRELATION BETWEE N THESE, AMOUNTS AND THE AMOUNTS ADDED IN THE COMPUTATION OF TOTAL INCOME WA S SUBMITTED TO THE A.O. OR CONFRONTED TO THE A.O. BY THE LD. CIT(A). ' 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 279/MISC/M-93/2018 -ITJ DT. 20/08/2019 HAS OBSERVED THAT CIRCULAR NO.17/2019 DA TED 08/08/2019 RELATING TO ENHANCEMENT OF MONETARY LIMITS IS ALSO APPLICABLE TO ALL PENDING APPEALS. AS PER AFORESAID CIRCULAR READ WIT H INSTRUCTION, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED IS SUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS A ND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, ITA NO. 2908/AHD/17 [DCIT VS.SAL STEEL LTD.] A.Y. 2012-13 - 3 - APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (PRADIP KU MAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBE AHMEDABAD: DATED 24/10/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 24/10/2019