The DCIT,(OSD), Circle-8, Ahmedabad V. M/s. Varsha Fashion Pvt. Ltd., Ahmedabad

ITA 3094/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9134 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 20-02-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 26-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH MEENA
• Assessee Lawyers: B T THAKKAR
• Keywords: Depreciation; Retrospective amendment; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHRI RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE D CIT (OSD) , CIRCLE - 8 , AHMEDABAD, (APPELLANT) VS M/S. VARSHA FASHION PVT. LTD. BLOCK NO. 96, VARSHA HOUSE, NILKANTH, P.B. BOX - PALDI, KANKAJ TA. DASCROI, AHMEDABAD PAN: AACCV0726D (RESPONDENT) REVENUE BY : S H RI OM PRAKASH MEENA, SR. D . R. ASSESSEE BY: S H RI B.T. THAKKAR , A.R. DATE OF HEARING : 20 - 02 - 2 017 DATE OF PRONOUNCEMENT : 22 - 02 - 2 017 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2010 - 11 , AR ISES FROM ORDER OF THE CIT(A) - X IV, AHMEDABAD DATED 25 - 10 - 2013 IN APPEAL NO. CIT(A) - XIV/D C IT, CR. 8(OSD)/166/2012 - 13 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME T AX ACT, 1961; IN SHORT THE ACT . I T A NO . 3094 / A HD/20 1 3 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 3094/AHD/2013 A.Y. 2010 - 11 PAGE NO D CI T (OSD) VS. M/S. VARSHA FASHION PVT. LTD. 2 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: - 1A). THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF RS.12,17,111/ - MADE U/S.14AOF THE ACT. 1B). THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD OUGHT TO HAVE UPHELD THE DISALLOWANCE ALTERNATIVELY U/S. 36(1)(III) OF THE ACT, AS BEING 'NON - BUSINESS' EXPENSES. 2). THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABA D HAS ERRED IN LAW AND ON FACTS IN DELETIN G THE DISALLOWANCE OF RS.73,401/ - MADE ON ACCOUNT OF LATE PAYMENT OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND U/S.36(1)(VA) OF THE ACT. 3). THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD HAS ERRE D IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF DEPRECIATION ON VEHICLE AMOUNTING TO RS. 12,36,530/ - . 4). ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD OUGHT TO HAVE UPHELD THE OR DER OF THE ASSESSING OFFICER. 5). IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XIV, AHMEDABAD MAY BE SET - A - SIDE AND THAT OF THE ORDER OF THE ASSESSING OFFICER BE RESTORED. 3 . AT THE TIME OF HEARING, LD. COUNS EL OF THE ASSESSEE SUBMITTED A LETTER INDICATING THAT THIS APPEAL IS COVERED BY THE CBDT CIRCULAR NO. 21/2015 AND CALCULATED THE TAX EFFECT IN THE THREE GROUNDS OF THIS APPEAL AT RS. 7,93,216/ - I.E. BELOW 10 LACS. LD. DEPARTMENTAL REPRESENTATIVE DID NOT R EBUT THE SAME. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATTER ON RECORD. T HE NET TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN RS. 10 I.T.A NO. 3094/AHD/2013 A.Y. 2010 - 11 PAGE NO D CI T (OSD) VS. M/S. VARSHA FASHION PVT. LTD. 3 LACS. THEREFORE, W E 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 WITHDRAWN/NOT PRESSED AS PER THE ABOVE ST ATED CIRCULAR . THE SAME HAS BEEN DECLARED TO BE HAVING RETROSPECTIVE EFFECT IN OT HER WORDS. WE TAKE INTO CONSIDERATION THE ABOVE STATED BOARD S CIRCULAR AND DISMISS THE INSTANT APPEAL ACCORDINGLY. 5 . THIS REVENUE S APPEAL IS DISMISSED AS HAVING LOW TAX EFFECT. ORDER PR ONOUNCED IN THE OPEN C OURT ON 22 - 02 - 201 7 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 22 /02 /2017 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,