The ITO, Ward-1, Surendranagar V. M/s. S.K.P. Bearing Industries, Surendranagar

ITA 317/RJT/2011

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1327 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 06-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 16-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DM RINDANI
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BEN CH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] (BEFORE SHRI ANIL CHATURVEDI, A.M. & SHRI S. S. GOD ARA, J.M.) ( , , ) ITA NO. 317/RJT/2011 (ASSESSMENT YEAR: 2008-09) INCOME TAX OFFICER, WARD 1, SURENDRANAGAR, IRISH BUILDING, OPP. MELA MAIDAN, SURENDRANAGAR VS. M/S. S.K.P. BEARING INDUSTRIES, SURVEY NO.2127, MULCHAND ROAD, WADHWAN, DIST. SURENDRANAGAR PAN: AAFFS6416H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRASOON KABRA, D.R. RESPONDENT BY : SHRI D. M. RINDANI, C.A. DATE OF HEARING : 06-04-201 6 DATE OF PRONOUNCEMENT : 08-04-2016 ( )/ ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-XVI, AHMEDABAD, DATED JUNE 30, 2011 FOR A.Y. 2008-09. 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER:- ITA NO 317/RJT/2011 . A.Y. 2008-09 2 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF DEPRECIATION OF RS.32,00,000/- O N WINDMILL PURCHASED ON 28.03.2008 AS THE ASSESSEE FAILED TO PROVE THAT WIN DMILL HAS ACTUALLY GENERATED ELECTRICITY , WHICH WAS SOLD AND EARNED INCOME OUT OF IT. 2. THE LD. CIT(A) FURTHER ERRED IN ADMITTING A CERT IFICATE FROM THE SELLER M/S. INDIA WIND POWER LTD. THAT IT HAD FORGONE ITS CLAIM OF DE PRECIATION ON THE WINDMILL FOR A.Y. 2008-09 WITHOUT OBTAINING THE REPORT OF THE AS SESSING OFFICER ON THE ABOVE DOCUMENT. 3. BEFORE US, AT THE OUTSET, LD. A.R. SUBMITTED THA T 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. D.R. FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REV ENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE DELETION OF ADDITION MADE ON ACCOU NT OF DISALLOWANCE OF DEPRECIATION OF RS.32,00,00,000/-. AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 ( CIRCUL AR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF G IVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDIN G INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL AP PLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISP UTED FACT THAT ON THE DEMAND WHICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN R S.10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRAT E THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBE D BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE T O THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPE AL IS NOT MAINTAINABLE ON ITA NO 317/RJT/2011 . A.Y. 2008-09 3 ACCOUNT OF LOW TAX EFFECT. IN SUCH CIRCUMSTANCES, W E DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 08/04/2016 SD/- SD/- (S. S. GODARA) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED. 08/04/2016 TRUE COPY S K SINHA 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, RAJKOT