The ACIT, Circle-1(3), Ahmedabad V. M/s. Kifs Securities Limited, Ahmedabad

ITA 3516/AHD/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0463 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 30-08-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 27-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL
• Keywords: Depreciation; Bad and doubtful debts; Tax effect
• Section: 143(3); 115JB

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 3516/AHD/2016 ( / ASSESSMENT YEAR: 2013-14) ACIT CIRCLE-1(3), B-109, 1 ST FLOOR, PRATYAKSHYAKAR BHAVAN, PANJRAPOLE, AMBAWADI, AHMEDABAD- 380015 / VS. M/S. KIFS SECURITIES LTD. B-81, PARISEEMA COMPLEX, C G ROAD, AHMEDABAD- 380006 ./ ./PAN/GIR NO. : AAA CK6 128 Q ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VINOD TANWANI, SR. DR / RESPONDENT BY: SHRI M. K. PATEL, AR !' /DATE OF HEARING 30/08/2019 #$!' / DATE OF PRONOUNCEMENT 13/09/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2013-14, ARISE FROM ORDER OF THE CIT(A)-10, AHMEDABAD DATED 26.10.2016, IN PROCEEDIN GS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FAC TS IN DELETING THE DISALLOWANCE OF DEPRECIATION AND INSURANCE ON MOTOR CAR OF RS. 12,40,270/- MADE BY THE AO. 2. THAT THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN RESTRICTING THE ADDITION OF RS. 13,86,072/- OUT OF TOTAL DISALLOWAN CE MADE BY THE AO OF RS. 76,59,151/- WHILE CALCULATING THE BOOK PROFIT U/S. 115JB OF THE ACT. 3. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF BAD DEBTS OF RS. 36,74,000/- MADE B Y THE AO. ITA NO. 3516/AHD/2016 [ACIT VS.M/S. KIFS SECURITIES LTD.] A.Y. 2013-14 2 2 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.17 OF 2019 DATED 08/08/2019 REVISING TH E 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 R S.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS AND THERE FORE APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, A PPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SH OWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 13/09/2019 TANMAY TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 THIS ORDER PRONOUNCED IN OPEN COURT ON 13/09/2019