The ITO, Ward-9(1), Ahmedabad V. Shayona Sales Corporation, Ahmedabad

ITA 3253/AHD/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50931 (ITAT-AHMEDABAD)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-11-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 09-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, AHMEDABAD BEFORE SHRI G. C. GUPTA, HONBLE VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO. 3253/ AHD/2010 (ASSESSMENT YEAR 2007-08.) ITO, WARD 9(1), AHMEDABAD VS. M/S.SHAYONA SALES CORPORATION, 120, ASHISHNAGAR SOCIETY, MEGHANINAGAR, AHMEDABAD PAN/GIR NO. : ABCFS0393M (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI SAMIR TEKRIWAL, SR. DR RESPONDENT BY: NONE DATE OF HEARING: 18.11.2011 DATE OF PRONOUNCEMENT: 18.11.2011 O R D E R PER SHRI A. K. GARODIA, AM:- THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDE R OF LD. CIT(A) XV, AHMEDABAD DATED 12.10.2010 FOR THE ASSESSMENT Y EAR 2007-08. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1). THE ID. COMMISSIONER OF INCOME-TAX (A)-XV, A HMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISAL LOWANCE OF RS.4,95,874/- MADE BY THE ASSESSING OFFICER U/S.40( A)(IA) OF THE ACT. 2). THE ID. COMMISSIONER OF INCOME-TAX (A)-XV, AHMEDABAD HAS , ERRED IN LAW AND ON FACTS IN DELETI NG THE DISALLOWANCE OF RS.30,000/- MADE BY THE ASSESSING OFFICER U/S.40 (A)(IA) OF THE ACT , AS THE TAX HAD BEEN DEDUCTED ON 24/03/2007 AN D HOW THE SAME CAN BE DEPOSITED INTO GOVERNMENT ACCOUNT ON 12 /03/2007. 3), ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A)-XV, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. I.T.A.NO.3253 /AHD/2010 2 4). IT IS THEREFORE, PRAYED THAT THE ORDER OF THE ID. COMMISSIONER OF INCOME-TAX(A)-XV, AHMEDABAD MAY BE SET-ASIDE AND TH AT OF THE ASSESSING OFFICER BE RESTORED. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE ON THE A PPOINTED DATE OF HEARING ALTHOUGH THE NOTICE OF HEARING WAS DULY SER VED ON THE ASSESSEE AS PER THE ACKNOWLEDGEMENT AVAILABLE ON RECORD AND HEN CE, WE PROCEED TO DECIDE THE APPEAL OF THE REVENUE EX-PARTE QUA THE A SSESSEE. 3. LD. D.R. OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER. AT THIS JUNCTURE, THE BENCH ENQUIRED REGARDING THE TAX EFFE CT IN THIS CASE. LD. D.R. COULD NOT SHOW THAT THE TAX EFFECT IN THE PRES ENT CASE IS MORE THAN RS.2 LACS BECAUSE THE TOTAL ADDITION MADE BY THE A. O. WAS RS.5,25,874/- ONLY AND HENCE, THE TAX EFFECT IN THE PRESENT CASE CANNOT BE MORE THAN RS.2 LACS AND THEREFORE, AS PER C.B.D.T. INSTRUCTIO N NO. 5 DATED 16.7.2007, AND THE BOARDS INSTRUCTION NO.2/2005, D ATED 24.10.2005, THIS TRIBUNAL IS CONSISTENTLY TAKING THE VIEW THAT REVEN UE AUTHORITIES MUST GIVE RESPECT TO THE C.B.D.T. CIRCULARS AND SHOULD NOT FI LE APPEAL IN SMALL AND PETTY CASES. THE WHOLE IDEA OF THE CIRCULAR IS NOT TO WASTE ENERGY OF THE DEPARTMENT ON SMALL MATTERS AND SAVE IT TO CONSTRUC TIVE AND HIGH YIELDING CASES. HONBLE DELHI HIGH COURT IN CASE OF CIT VS. MANISH BHAMBRI VIDE ORDER DATED 1.8.2007 IN I.T.A. NO.683/DEL/07, HAVE UPHELD THE ORDER OF THE ITAT VIDE WHICH THE APPEAL FILED BY THE REVENUE WAS DENIED TO BE ENTERTAINED BECAUSE OF THE LOW TAX EFFECT. IN VIEW OF ABOVE, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AND HENCE, THE SAME IS REJECTED AS NOT ADMITTED BECAUSE OF LOW TAX EFFECT. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D FOR LOW TAX EFFECT. 5. ORDER PRONOUNCED ON THE DATE OF HEARING MENTIONE D HEREINABOVE. SD./- SD./- (G. C. GUPTA) (A. K. GARODIA) VICE PRESIDENT ACCOUNTANT MEMBER SP I.T.A.NO.3253 /AHD/2010 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 21/11 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 22/11.OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S.22/11 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 18/11 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S. 24/11 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 24/11/2011 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. ..