The ITO, Ward-4(2)(2), Ahmedabad V. M/s. Knack Polymers, Ahmedabad

ITA 3447/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8555 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 23-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K C THAKER
• Keywords: Retrospective amendment; Deemed dividend; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA.NO.3447/AHD/2014 / ASSTT. YEAR: 2010-11 ITO, WARD - 4(2)(2) AHMEDABAD. VS M/S.KNACK POLYMERS 17, GROUND FLOOR, MAMTA COMPLEX NR. SATADHAR CROSS ROAD GHATLODIA, AHMEDABAD. PAN : AAIFK 4470 E ! / (APPELLANT) '# ! / (RESPONDENT) REVENUE BY : SHRI MUDIT NAGPAL, SR.DR ASSESSEE BY : SHRI K.C. THAKER, AR / DATE OF HEARING : 13/09/2017 / DATE OF PRONOUNCEMENT: 15/09/2017 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-XI, AHMEDABAD DATED 12.9.2014 PASSED FOR THE ASSTT.YEAR 2010-11. 2. REVENUE HAS RAISED FOUR GROUNDS OF APPEAL, BY WH ICH, IT HAS CHALLENGED ACTION OF THE LD.CIT(A) IN DELETING ADDITION OF RS. 18,93,658/- BEING DEEMED DIVIDEND AND DELETING DISALLOWANCE OF RS.10,80,288 /- FOR UNDER VALUATION OF THE STOCK. ITA NO.3447/AHD/2014 2 3. LD.COUNSEL FOR THE ASSESSEE HAS FILED A LETTER D ATED 12.9.2017 SEEKING ADJOURNMENT OF THE CASE FOR PREPARATION AND FILING OF THE PAPER BOOK, WHICH WAS REJECTED BY THE BENCH, BECAUSE OF THE FACT THAT ON GOING THROUGH THE ORDERS OF THE REVENUE AUTHORITIES, IT IS OBSERVED T HAT THE APPEAL OF THE REVENUE IS OTHERWISE TO BE DISMISSED IN LIMINE DUE TO LOW TAX EFFECT. WHEN THE BENCH POINTED OUT TO THE LD.DR ABOUT MAINTAINAB ILITY REVENUES APPEAL BEFORE THE TRIBUNAL IN VIEW OF RECENT CBDT CIRCULAR RESTRICTING FILING OF APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELO W RS.10 LAKHS, THE LD.DR WAS UNABLE TO DISPUTE THE SAME, AND LEFT TO THE TRI BUNAL TO DECIDE THE APPEAL IN ACCORDANCE WITH LAW. 4. WE HAVE HEARD LD.DR AND GONE THROUGH THE IMPUGNE D ORDERS. WE FIND THAT APPEAL OF THE REVENUE, WHICH IS FILED ON 23.12 .2014 IS HIT BY RECENT CBDT INSTRUCTION NO.21 OF 2015 DATED 10.12.2015 WHE REBY THE BOARD HAS PROHIBITED ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL BEFORE THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.10 LAKHS . THE INSTRUCTIONS HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEA NING THEREBY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO . IN THE PRESENT CASE, TAX EFFECT ON THE ADDITIONS DELETED BY THE LD.CIT(A) AN D CONTESTED BY THE REVENUE, WOULD BE LESS THAN RS.10 LAKHS. THEREFORE , THE PRESENT APPEAL DESERVES TO BE DISMISSED BEING TREATED TO BE FILED IN VIOLATION OF THE ABOVE CBDT INSTRUCTION. IT IS DISMISSED. 5. IT IS FURTHER OBSERVED THAT ON RE-VERIFICATION A T THE END OF THE AO, IT CAME TO THE NOTICE THAT TAX EFFECT IS MORE OR IT FA LLS WITHIN THE AMBIT OF EXCEPTION PROVIDED IN THE INSTRUCTION, THEN THE DEP ARTMENT WILL BE AT LIBERTY TO ITA NO.3447/AHD/2014 3 APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN LIMITATION PRESCRIBED UNDER THE LAW. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 15 TH SEPTEMBER, 2017 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER