The ITO, Ward-1(2), Surat V. M/s. G.L. Textiles Pvt.Ltd., Surat

ITA 3155/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9533 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-01-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 13-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK SUTARIA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER & SHRI ANIL CHATURVEDI, ACCOUNTANT, MEMBER) ITA NO: 3155/AHD/2011 (ASSESSMENT YEAR: 2005-06) INCOME TAX OFFICER, WARD- 1(2), SURAT V/S M/S. G.L. TEXTILES PVT. LTD., 20, SHRI SHYAM CHAMBERS, RING ROAD, SURAT. (APPELLANT) (RESPONDENT) PAN: AACCG1687J APPELLANT BY : SHRI DEEPAK SUTARIA, SR. D .R. RESPONDENT BY : NONE ( )/ ORDER DATE OF HEARING : 11-01-2016 DATE OF PRONOUNCEMENT : 12-02-2016 PER ANIL CHATURVEDI, ACCOUNTANT MEMBER 1. THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-I, SURAT DATED 26.09.2011 FOR A.Y. 2005-06. ITA NO . 315 5/AHD/2011 . A.Y. 2005-0 6 2 2. THE GROUNDS RAISED BY THE REVENUE IN THE PRESENT AP PEAL READS AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-I, SURAT HAS ERRED IN DELETING THE ADDITION ON THE POI NT OF DISALLOWANCE OF EXPENSES WITHOUT GIVING ANY PURPOSEFUL BASE AND WIT HOUT APPRECIATING THE FACT THAT, TDS PERTAINING TO PERIOD UP TO FEBRU ARY, 2005 WAS NOT PAID BEFORE THE PRESCRIBED TIME OF 31.03.2005, THE EXPEN DITURE RELATED TO THAT UNPAID AMOUNT IS REQUIRED TO BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE I.T. ACT. 3. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REV ENUE AND THE STATEMENT OF FACTS FILED BY REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY DELETION OF ADDITIONS OF RS. 12,10,915/-, THE TAX EFFECT OF WHI CH IS BELOW RS. 10 LACS. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAX ES (CBDT) DATED 10.12.2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOM E TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PEND ING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE AD DITIONS WHICH ARE IN DISPUTE THE TAX EFFECT IS LESS THAN RS. 10 LACS, AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF TH E CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY T HE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, WE DISMIS S THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CAS E. ITA NO . 315 5/AHD/2011 . A.Y. 2005-0 6 3 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 12 - 02 - 201 6. SD/- SD/- (S.K. YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHM EDABAD