The DCIT, Circle-4, Ahmedabad V. M/s. Gujarat Lease Finance Ltd., Ahmedabad

ITA 3231/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9842 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 28-12-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 10-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKESH JHA SR DR
• Assessee Lawyers: P M MEHTA AR WITH G M THAKOR
• Keywords: Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER ./ ITA NO. 3231/AHD/2015 / ASSESSMENT YEAR: 2012-13 DCIT, CIRCLE 2(1)(1), AHMEDABAD .. APPELLANT VS M/S. GUJARAT LEASE FINANCE LTD, 6 TH FLOOR, HASUBHAI CHAMBERS, OPP. TOWN HALL, ELLISBRIDGE, AHMEDABAD .. RESPONDENT PAN : AAACG 8354 N REVENUE BY : SHRI RAKESH JHA, SR-DR ASSESSEE(S) BY : SHRI P.M. MEHTA, AR WITH G.M. THAKOR / DATE OF HEARING 28 /12/2015 /DATE OF PRONOUNCEMENT 06 / 01 / 201 6 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, AHM EDABAD DATED 10.08.2015 FOR ASSESSMENT YEAR 2012-13, ON THE FOLLO WING GROUNDS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN RESTR ICTING THE DISALLOWANCE TO RS.11,000/- AS AGAINST RS.5,60,983 /- U/S 14A R.W.R. 8D, WITHOUT PROPERLY APPRECIATING THE F ACTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE L D. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED TO THE ABOVE EXTENT. 4. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUN D OR ADD A NEW GROUND, WHICH MAY BE NECESSARY. 2. BEFORE ME, AT THE OUTSET, LD. AUTHORIZED REPRESENTATIV E SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO B E DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR (SMC) ITA NO. 3231/AHD/2015 DCIT VS. GUJARAT LEASE FINANCE LTD AY 2012-13 2 NO.21 OF 2015 DATED 10.12.2015. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS TH AN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISE D BY THE REVENUE, I FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF CIT(A) IN RESTRICTING THE DISALLOWANCE TO RS.11,000/- AS AGAINST R S.5,60,983/- MADE BY THE ASSESSING OFFICER U/S 14A READ WITH RULE 8D OF THE ACT AND THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS. AS P ER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) D ATED 10.12.2015 (CIRCULAR NO.21 OF 2015), NO DEPARTMENT A PPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE TH E INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING IN TEREST EXCEEDS RS.10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WIL L APPLY RETROSPECTIVELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT THE TAX EFFECT IS LESS THAN RS. 10 LACS, I AM OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE IN STRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO TH E PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEA L IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN SUCH CIR CUMSTANCES, I DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 6TH JANUARY, 2016 AT AHMEDABAD. SD/- ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 06/01/2016 BIJU T., PS (SMC) ITA NO. 3231/AHD/2015 DCIT VS. GUJARAT LEASE FINANCE LTD AY 2012-13 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. (- . / GUARD FILE. / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD