The ACIT, Circle-7(2), Ahmedabad V. M/s. Isotex Corporation, Ahmedabad

ITA 3222/AHD/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6146 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 05-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RICHA RASTOGI
• Assessee Lawyers: S N DIVATIA
• Keywords: Audit objection; Tax effect
• Section: 145

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 3222/AHD/2014 ASSESSMENT YEAR : 2010-11 ACIT, CIRCLE-7(2), AHMEDABAD V/S . M/S. ISOTEX CORPORATION, 181/283, GIDC INDUSTRIAL ESTATE, NARODA, AHMEDABAD PAN : AAAFI 3041 F / ( APPELLANT) .. / (RESPONDENT) REVENUE BY : MS. RICHA RASTOGI, SR DR ASSESSEE BY : SHRI S.N. DIVATIA, AR / DATE OF HEARING : 09.01.2018 / DATE OF PRONOUNCEMENT : 01.02.2018 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-6, AHMEDABAD D ATED 11.09.2014 PASSED FOR AY 2010-11. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APPEAL:- (1) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.32,36,142/- DESPITE SPECIFIC PROVISIONS OF SE CTION 145A OF THE I.T. ACT IN SUPPORT OF THE ADDITION MADE BY THE ASSESSIN G OFFICER AND WITHOUT CONTRAVERTING ASSESSING OFFICERS REASONING THAT EXCLUSION OF MODVAT/VAT RECEIVABLES FROM VALUATION OF CLOSING ST OCK WOULD BE INCONSISTENT WITH EXPRESS PROVISIONS OF SECTION 145 A(A)(II) OF THE IT ACT. (2) ON FACT AND CIRCUMSTANCES OF THE CASE, THE LD. CIT( A) OUGHT TO HAVE UPHELD THE ORDER OF THE AO 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED 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 20 15 DATED 10.12.2015. ITA NO. 3222/AHD/2014 ACIT VS. M/S. ISOTEX CORPORATION AY : 2010-11 2 THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBD T 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 DECEMBE R 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRT UE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LAC S, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURT HER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL N OT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDE R OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELAT ES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT TH E PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LES S THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE A ND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 1 ST FEBRUARY, 2018 AT AHMEDABAD. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/02/2018 *BIJU T.A / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD