The DCIT, Circle-8, Ahmedabad V. Shreenath Smart Technologies Pvt. Ltd., Ahmedabad

ITA 2923/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0756 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-08-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 11-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PROMOD KUMAR, AM & SHRI MAHAVIR PRASAD, JM ./ITA.NO.2923/AHD/2013 ( / ASSTT YEAR : 2010-11) DCIT, CIRCLE-8, AHMEDABAD. VS. SHREENATH SMART TECHNOLOGIES PVT. LTD., P-1-41, VARUN APARTMENT, VASANT BAUG, GULBAI TEKRA, ELLISBRIDGE, AHMEDABAD. PAN AALCS 8208G (APPELLANT) (RESPONDENT) / APPELLANT BY: SHRI PRASOON KABRA, SR. DR / RESPONDENT BY: SHRI S. N. DIVETIA, AR / DATE OF HEARING 23/08/2016 /DATE OF PRONOUNCEMENT 26/08/2016 / O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER THIS APPEAL OF REVENUE IS DIRECTED AGAINST THE OR DER OF LD.CIT(A)- XIV, AHMEDABAD, DATED 17.9.2013 PASSED AGAINST THE ORDER U/S 143(3) OF THE IT ACT, 1961(IN SHORT THE ACT) DT.28.02.2013 F RAMED BY JCIT, CIR.8, AHMEDABAD. 2. GRIEVANCES OF THE REVENUE, IN THIS APPEAL ARE AS UNDER :- ITA NO.2923/AHD/2013 ASST. YEAR 2010-11 2 1). THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XI V, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.17,03,409/- MADE ON ACCOUNT OF SOFTWARE EXPENSES. 2) THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XIV , AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.9,63,400/- MADE ON ACCOUNT OF SOFTWARE DEVELOPMENT EXPENSES. 3) THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XIV , AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.98,114/- MADE U7S.40(A) OF THE ACT. 4) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, AHMEDABAD OUGHT TO HAV E UPHELD THE ORDER OF THE ASSESSING OFFICER. 5). IT IS THEREFORE, PRAYED THAT THE ORDER OF THE L D. COMMISSIONER OF INCOME- TAX (APPEALS)-XIV, AHMEDABAD MAY BE SET-A-SIDE AND THAT OF THE ORDER OF THE ASSESSING OFFICER BE RESTORED. 3. THIS APPEAL WAS PRESENTED ON 11/12/2013. ON 10. 12.2015 THE CBDT HAS ISSUED INSTRUCTIONS BEARING NO. 21/2015 PROHIBI TING ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL TO THE TRIBUN AL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS. THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THEREBY, THESE INSTRU CTIONS ARE APPLICABLE ON PENDING APPEAL ALSO. THE TAX EFFECT ON DELETION OF THE TOTAL ADDITION IN THIS APPEAL WOULD BE LESS THAN RS.10 LAKHS. THE PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF CBDT INSTRUCTIONS. THE CASE DOES NOT FALL WITHIN THE AMBIT OF EXCEPTIONS P ROVIDED IN THE INSTRUCTIONS. IT IS FURTHER OBSERVED THAT SINCE, WHILE HEARING TH E APPEAL, SUCH FACTORS WERE ITA NO.2923/AHD/2013 ASST. YEAR 2010-11 3 NOT CONSIDERED, THEREFORE, IN CASE, ON RE-VERIFICAT ION AT THE END OF THE AO, IT CAME TO THE NOTICE THAT THE TAX EFFECT IS MORE OR T HEY FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE INSTRUCTION, THEN THE DE PARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN LIMITATION PROVIDED IN LAW. IN VIEW O F THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 26 AUGUST, 2016 A T AHMEDABAD. SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER S D/- (MAHAVIR PRASAD) JUDICIAL MEMBER AHMEDABAD; DATED, 26/08/2016 ! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. !' # / CONCERNED CIT 4. # ( ) / THE CIT(A), AHMEDABAD 5. $% & ''!' , !' , () / DR, ITAT, AHMEDABAD 6. & *+ , / GUARD FILE. ' # / BY ORDER, $ / # %& ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD ITA NO.2923/AHD/2013 ASST. YEAR 2010-11 4 1. DATE OF DICTATION .. : 23/8/2016. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER : 23/8/2016 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. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 26/8 /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..