The DCIT, Circle-2(1)(1), Ahmedabad V. Integrated Coating and Seed Technology India Pvt. Ltd., Ahmedabad

ITA 3192/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2421 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 01-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO. 3192/AHD/2016 ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-2(1)(1), AHMEDABAD VS INTEGRATED COATING AND SEED TECHNOLOGY INDIA PVT LTD, 47, MAHAGUJARAT INDUSTRIAL ESTATE, OPP. PHARMALAB, SARKHEJ-BAVLA HIGHWAY, AT. MORAIYA, TAL. SANAND, AHMEDABAD-382213 PAN : AABCI 1946 H / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI MUDIT NAGPAL, SR DR ASSESSEE BY : SHRI DHINAL SHAH, AR / DATE OF HEARING : 02/08/2018 / DATE OF PRONOUNCEMENT: 04/09/2018 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER :- 1. THE PRESENT APPEAL IS DIRECTED AT THE INSTANCE O F THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(A)-2, AHMEDABAD DATED 06.0 9.2016 PASSED FOR ASSESSMENT YEAR 2013-14. 2. THE REVENUE HAS TAKEN FOLLOWING GROUNDS OF APPEA L:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE DISALLOWANCE ON ACCOUNT OF UPWARD ADJUSTMENT OF MANAGEMENT FEES AMOUNTING TO RS.41,55,534/- WITHOUT PROPERLY APPRECIATING THE FA CTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. ITA NO. 3192/AHD/2016 DCIT VS. INTEGRATED COATING & SEED TECH I PVT LTD AYS : 2013-14 2 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018. THE LEARNED 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 THE RECENT CBDT CIRCULAR NO . 3/2018 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 11TH JULY, 2 018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPEALS S HOULD BE FILED BEFORE THE TRIBUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISS IONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, WHERE THE CONS TITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHE RE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPT ED BY THE DEPARTMENT OR WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS. THEREFORE, THE PR ESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS THUS DISMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 4 TH SEPTEMBER, 2018 AT AHMEDABAD. SD/- SD/- ( WASEEM AHMED ) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED 04/09/2018 *BT ITA NO. 3192/AHD/2016 DCIT VS. INTEGRATED COATING & SEED TECH I PVT LTD AYS : 2013-14 3 / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '! / THE RESPONDENT. 3. & ( / CONCERNED CIT 4. ( ) ( / THE CIT(A)- 5. & , & , /DR,ITAT, AHMEDABAD, 6. 1 / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) & ITAT, AHMEDABAD 1. DATE OF DICTATION- 03.09.2018 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 03.09.2018 OTHER MEMBER 03.09.2018. 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. - 04.09.2018 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 04.09.2018.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK04. 09.2018 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