The DCIT, Circle-1(1)(1), Ahmedabad V. M/s. Arya Omnitalk Wireless Solutions Pvt. Ltd., Ahmedabad

ITA 3240/AHD/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3382 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 16-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Tax effect
• Section: 143(3); 115JB

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 3240/AHD/2015 ( ASSESSMENT YEAR : 2011-12) DCIT CIRCLE 1(1)(1), AHMEDABAD / VS. M/S. ARYA OMNITALK WIRELESS SOLUTIONS PVT. LTD. C/O. ARVIND MILLS LTD., TEXTILE DIVISION, NARODA ROAD, AHMEDABAD - 380025 ./ ./ PAN/GIR NO. : AAAC05172E ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI LALIT P. JAIN, SR.D.R. / RESPONDENT BY : IRA KAPOOR, A.R. DATE OF HEARING 19/02/2019 !'# / DATE OF PRONOUNCEMENT 26/02/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-3, AHMEDABAD (CIT(A) IN SHORT), DATED 0 7 TH SEPTEMBER, 2015 ARISING IN THE ASSESSMENT ORDER DATED 27.03.20 14 PASSED BY THE ITA NO. 3240/AHD/15 [DCIT VS. M/S. ARYA OMNITALK WIRELESS SOLUTIONS PVT. LTD.] A.Y. 2011-12 - 2 - ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING AY 2011-12. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA D AS UNDER:- 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN D ELETING THE ADDITION MADE OF RS.31,10,943/- ON ACCOUNT OF UNUTILIZED CENVAT CRED IT U/S 145A OF THE ACT. 2. THE CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE ADDITION MADE OF DISALLOWANCE OF PROVISION FOR GRATUITY AND LEAVE EN CASHMENT FOR COMPUTING BOOK PROFIT U/S 115JB OF THE ACT. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISIN G THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORE SAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE D ISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFEC T DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAK HS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED I N LIMINE. THE AR FURTHER POINTED OUT THAT NOTWITHSTANDING THE AFO RESAID CIRCULAR, THE QUANTUM APPEAL HAS ALSO BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE ITAT AND THIS PENALTY APPEAL OF THE REVENUE DOES NOT SURVIVE. THE AR REFERRED TO THE DECISION OF THE CO -ORDINATE BENCH IN ITA NO. 1883/AHD/2014 DATED 02.08.2017 IN QUANTUM P ROCEEDINGS FOR THIS PURPOSE. 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. SECONDLY, ITA NO. 3240/AHD/15 [DCIT VS. M/S. ARYA OMNITALK WIRELESS SOLUTIONS PVT. LTD.] A.Y. 2011-12 - 3 - PENALTY PROCEEDINGS DO NOT SURVIVE IN VIEW OF THE D ECISION OF ADDITIONS/DISALLOWANCES IN QUANTUM. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 26/02/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 26/02/2019