The Addl. CIT., Range-5, Ahmedabad V. M/s. PMC Project (Inda) Pvt.Ltd., Ahmedabad

ITA 3151/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7978 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Audit objection; Tax effect; Capital expenditure
• Section: 143(3); 14A

Judgement Text

ITA NO. 3151/AHD/2015 ACIT VS. PMC PROJECTS IND PVT LTD ASSESSMENT YEAR : 2011-12 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO. 3151/AHD/2015 ASSESSMENT YEAR: 2011-12 ADD. CIT, .............APPELLANT RANGE-5, AHMEDABAD VS. PMC PROJECTS INDIA PVT LTD .......................RESPONDENT 4 TH FLOOR, INFRASTRUCTURE HOUSE, BESIDE ADANI HOUSE, MITHAKHALI SEX ROADS, NAVRANGPURA, AHMEDABAD-380 015 APPEARANCES BY: PRASOON KABRA FOR THE APPELLANT IRA KAPOOR FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 13.12.2017 DATE OF PRONOUNCING THE ORDER : 13.12.2017 O R D E R PER PRAMOD KUMAR AM: 1. THIS APPEAL, FILED BY THE ASSESSING OFFICER, IS DIRECTED AGAINST THE ORDER DATED 18 TH AUGUST 2015 PASSED BY THE CIT(A)-9, AHMEDABAD, IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961, F OR THE ASSESSMENT YEAR 2011-12. 2. THE GRIEVANCES OF THE ASSESSING OFFICER ARE AS FOLLOWS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE DISALLOWANCE OF RS.12,32,489/- MADE U/S 14A OF THE ACT. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.16,07,998/- OUT OF RS.19,24,698/- MADE ON ACCOUN T OF BUSINESS PROMOTION EXPENDITURE. 3. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN TREATING EXPENDITURE ON ACCOUNT OF PURCHASE OF LAPTOP FOR GIFT OF RS.1,16,7 00/- AS CAPITAL EXPENDITURE INSTEAD OF TREATING THE SAME AS NON-BUSINESS EXPEND ITURE AS HELD BY THE AO. 3. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUB MITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. SHE HAS ALSO SUBMITTED THAT IN ITA NO. 3151/AHD/2015 ACIT VS. PMC PROJECTS IND PVT LTD ASSESSMENT YEAR : 2011-12 PAGE 2 OF 2 THE PRESENT CASE THE TAX EFFECT IS RS.9,13,770/- WH ICH IS BELOW THE PRESCRIBED LIMIT OF RS.10 LACS AND SHE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 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 BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BEL OW RS. 10 LACS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURT HER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIO NS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON S OME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLA USE AND THE TAX IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTA INABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 13 TH DAY OF DECEMBER, 2017. SD/- SD/- S S GODARA PRAMOD KUM AR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) *BT AHMEDABAD, THE 13 TH DAY OF DECEMBER, 2017 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 EF FECT LESS THAN 10 LACS 13.12.2017 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 13.12.2017.......... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S.: ... 13.12.2017........ 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: ....... 13.12.2017................. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : ..... 19.12.2017................... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: .. 8. DATE OF DESPATCH OF THE ORDER: ......