ASSISTANT COMMISSIONER OF INCOME TAX, Kota V. SHIV EDIBLES LTD., Kota

ITA 338/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2846 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 09-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENA
• Assessee Lawyers: MAHENDRA GARGIEYA ADV DHK
• Keywords: Depreciation; Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 338 & 339/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2009-10 & 2011-12 A .C.I.T., CENTRAL-1, KOTA. CUKE VS. M/S SHIV EDIBLES LTD., 237-A, TALWANDI, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAICS 0274 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI ROSHANTA MEENA (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI MAHENDRA GARGIEYA (ADV). LQUOKBZ DH RKJH[K @ DATE OF HEARING: 24/08/2018 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 28/08/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M.: BOTH THESE APPEALS BY THE REVENUE ARE DIRECTED AGAI NST THE SEPARATE ORDERS DATED 13/12/2017 AND 12/12/2017 OF LD. CIT(A), KOTA FOR THE A.Y. 2009-10 & 2011-12 RESPECTIVELY. IN BOTH THE APPEALS THE RE VENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: GROUNDS FOR THE A.Y. 2009-10 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN: (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 38,76,623/- BY DISALLO WING DEPRECIATION ON PLANT AND MACHINERY. (II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 2,35,127/- MADE BY DIS ALLOWING EXCESS DEPRECIATION ON ELECTRIC INSTALLATION. 2 ITA NO. 338 & 339/JP/2018 ACIT VS M/S SHIV EDIBLES LTD. (III) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 2,15,511/- OUT OF TOTA L ADDITION OF RS. 2,37,161/- MADE U/S 40(A)(IA). (IV) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 2,33,354/- MADE U/S 40 (A)(IA). (V) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITIONA L GROUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TIME OF HE ARING. GROUNDS FOR THE A.Y. 2011-12 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN: (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 2,17,229/- MADE BY DIS ALLOWING EXCESS DEPRECIATION ON ELECTRIC INSTALLATION. (II) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITION AL GROUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TIME OF HE ARING. 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS RAISED AN OBJECTION OF MAINTAINABILITY OF THE APPEALS OF THE REVENUE FO R BOTH THE ASSESSMENT YEARS DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO. 3 OF 2018 DATED 11 TH JULY, 2018. THE LD. A/R SUBMITTED THAT IN THE FAC TS OF THE PRESENT CASE, TAX EFFECT IN REVENUES APPEALS ARE STATED TO BE RS. 16,12,190/- FOR THE A.Y. 2009-10 AND RS. 66,040/- FOR THE A.Y. 2011-12 WHICH ARE BELOW THE PRESCRIBED LIMIT OF RS 20 LACS. 3. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EF FECT INVOLVED IN BOTH THE REVENUES APPEALS ARE LESS THAN 20 LACS WHICH IS PR ESCRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN BOTH THE REVENUES APPEALS IN QUESTION IS BELOW RS. 20.00 LACS. UNDER THE POWE RS VESTED BY SECTION. 268A(1) 3 ITA NO. 338 & 339/JP/2018 ACIT VS M/S SHIV EDIBLES LTD. OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR N O. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRU CTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD N OT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EX CEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLIC ABLE FOR ALL PENDING APPEALS. 5. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRAWN O R NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 6. THE PRESENT APPEALS ARE NOT COVERED BY ANY EXCE PTIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUT E IN THIS DEPARTMENTAL APPEALS ARE BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEALS OF THE ASSESSEE ARE NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEALS OF THE DEPARTMENT ARE DISMI SSED AS NOT PRESSED/WITHDRAWN. 7. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/08/2018 . SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 28 TH AUGUST, 2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE A.C.I.T., CENTRAL-1, KOTA. 4 ITA NO. 338 & 339/JP/2018 ACIT VS M/S SHIV EDIBLES LTD. 2. IZR;FKHZ@ THE RESPONDENT- M/S SHIV EDIBLES LTD., KOTA. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K]T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 338 & 339/JP/2018 ) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR