Dy.Commissioner of Income Tax, Circle-4(1)(2), Ahmedabad V. Tipsons Finansial Services Pvt.Ltd., Ahmedabad

ITA 3428/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6377 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 09-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHRI S. S. GODARA, JUDICIAL MEMBER ITA NO. 3428/AHD/2015 (ASSESSMENT YEAR: 2012-13) D.C.I.T., CIRCLE 4(1)(2), AHMEDABAD APPELLANT VS. TIPSONS FINANCIAL SERVICES PVT. LTD., 401, 4 TH FLOOR, SHERATON HOUSE, OPP. KETAV PETROL PUMP, POLUTECHNIC ROAD, AMBAWADI, AHMEDABAD RESPONDENT PAN: AAACW1883C /BY REVENUE : SHRI PRASOON KABRA, SR. D.R /BY ASSESSEE : NONE /DATE OF HEARING : 01.01.2018 /DATE OF PRONOUNCEMENT : 02.01.2018 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2012-13 A RISES AGAINST THE CIT(A)-8, AHMEDABADS ORDER DATED 26.10.2015 IN CAS E NO. CIT(A)-8/191/14-15, IN PROCEEDINGS U/S.143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE REVENUES SUBSTANTIVE GROUNDS PLEADED IN THE INSTANT APPEAL ARE AS UNDER: 1). WHETHER THE LD. COMMISSIONER OF INCOME-TAX (A PPEALS) IS RIGHT IN LAW AND ON FACTS IN ALLOWING THE CLAIM OF DEDUCTION U/S 80IA O F THE ACT OF RS. 27,11,154/-, IGNORING THE SPECIAL BENCH DECISION OF ITAT, AHMEDA BAD IN 113 ITD 209 (SB). ITA NO. 3428/AHD/15 [DCIT VS. TIPSONS FINANCIAL SER VICES PVT. LTD.] A.Y. 2012-13 - 2 - 2). WHETHER THE LD. COMMISSIONER OF INCOME-TAX (AP PEALS) IS RIGHT IN LAW AND ON FACTS IN RESTRICTING THE DISALLOWANCE TO RS. 2,60,1 74/- OUT OF TOTAL DISALLOWANCE OF RS. 3,87,346/-U/S 14A OF THE ACT, IGNORING THE FACT THAT THE QUANTUM OF DISALLOWANCE WAS WORKED OUT AS PER RULE 8D AND NOT CONSIDERING THE POSSIBLE SITUATIONS WHERE EXPENDITURE/EFFORTS MAY BE MORE AN D INCOME/RESULTS MAY BE LESS. 3. THERE IS NO DISPUTE THAT THE NET TAX EFFECT IN T HE INSTANT APPEAL IS LESS THAN RS.10 LACS. WE FIND THAT THE CENTRAL BOARD OF DIRE CT TAXES; HEREAFTER THE BOARD HAS ISSUED THE CIRCULAR NO. 21/2015 DATED 10.12.201 5 CLEARLY ENVISAGING THEREIN THAT DEPARTMENTS PENDING APPEALS BEFORE THE TRIBUN AL/HIGH COURTS ARE TO BE WITHDRAWN/NOT PRESSED AS PER THE ABOVE STATED CIRCU LAR. THE SAME HAS BEEN DECLARED TO BE HAVING RETROSPECTIVE EFFECT IN OTHER WORDS. WE TAKE INTO CONSIDERATION THE ABOVE STATED BOARDS CIRCULAR AND DISMISS THE INSTANT APPEAL ACCORDINGLY. 3. THE REVENUES APPEAL IS DISMISSED AS HAVING LOW TAX EFFECT. [PRONOUNCED IN THE OPEN COURT ON THIS THE 02 ND DAY OF JANUARY, 2018.] SD/- SD/- ( PRAMOD KUMAR ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD: DATED 02/01/2018 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0