ITO, Ward-5(3)(1), Ahmedabad V. M/s. G.K.Patel & Co., Ahmedabad

ITA 3113/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6372 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 04-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 143(3)

Judgement Text

ITA NO. 3113/AHD/2015 ITO VS. GK PATEL & CO. ASSESSMENT YEAR : 2008-09 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO. 3113/AHD/2015 ASSESSMENT YEAR: 2008-09 INCOME-TAX OFFICER, .............A PPELLANT WARD-5(3)(1), AHMEDABAD VS. GK PATEL & CO. .......................RESPONDENT 14-A, SHARDA SOCIETY, PALDI, AHMEDABAD [PAN : AABFG 3658 F] APPEARANCES BY: MUDIT NAGPAL FOR THE APPELLANT URVASHI SHODHAN FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 01.01.2018 DATE OF PRONOUNCING THE ORDER : 02.01.2018 O R D E R PER PRAMOD KUMAR, AM: 1. THIS APPEAL, FILED BY THE ASSESSING OFFICER, IS DIRECTED AGAINST THE ORDER DATED 12 TH AUGUST 2015 PASSED BY THE CIT(A), AHMEDABAD-5, AHME DABAD, IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME-TAX A CT, 1961, FOR THE ASSESSMENT YEAR 2008- 2009. 2. THE GRIEVANCE OF THE ASSESSING OFFICER IS AS FO LLOWS:- THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWA NCE U/S 40(A)(IA) RS.19,20,112/-, WITHOUT CONSIDERING THE FACT THAT SINCE THE CONTRAC TUAL PAYMENT WERE MADE BY THE ASSESSEE BETWEEN APRIL 2007 & FEBRUARY 2008 THE TDS DEDUCTED ON THE SAME HAD TO BE DEPOSITED IN THE MONTH OF MARCH 2008 ITSELF, WHI CH THE ASSESSEE HAD NOT DONE & HENCE PROVISIONS OF SECTION 40(A)(IA) WERE ATTRACTE D. 3. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUB MITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMEN TAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. ITA NO. 3113/AHD/2015 ITO VS. GK PATEL & CO. ASSESSMENT YEAR : 2008-09 PAGE 2 OF 2 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT B Y VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LACS, THEN THAT O RDER 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 PROVIDED THAT THES E INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNE D ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 2 ND DAY OF JANUARY, 2018. SD/- SD/- S S GODARA PRAMOD KUM AR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) *BT AHMEDABAD, THE 2 ND DAY OF JANUARY, 2018 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ......COVERED MATTER, TAX EFFEC T LESS THAN 10 LACS 01.01.2018 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER: 01.01.2018...... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S.: ... 02.01.2018..... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT: .. 02.01.2018.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . .. 02.01.2018................... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER: .. 8. DATE OF DESPATCH OF THE ORDER: ......