The ITO, Ward-2(1)(1), Ahmedabad V. M/s. Parag Rameshbhai Shah, Ahmedabad

ITA 3675/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3626 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 31-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DAVE
• Assessee Lawyers: P B PARMAR
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 3675/AHD/2015 ( ASSESSMENT YEAR : 2012-13) THE ITO, WARD-2(1)(1), NAVJIVAN TRUST BLDG., OFF. ASHRAM ROAD, 1 ST FLOOR, ROOM NO.104, AHMEDABAD- 380014 / VS. M/S. PARAG RAMESHBHAI SHAH, 2, SANGEMARMAR COMPLEX, SUPREMO TOWER, AMBAVADI, AHMEDABAD - 380015 ./ ./ PAN/GIR NO. : ANTPS3032L ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. K. DAVE, SR. D.R. / RESPONDENT BY : SHRI P. B. PARMAR, A.R. DATE OF HEARING 01/08/2018 !'# / DATE OF PRONOUNCEMENT 21/08/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-2, AHMEDABA D (CIT(A) IN SHORT), DATED 28.10.2015 ARISING IN THE ASSESSME NT ORDER DATED 20.02.2015 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 143(3) ITA NO.3675/AHD/15 [I.T.O. VS. M/S. PARAG RAMESHBHA I SHAH] A.Y. 2012-13 - 2 - OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AS SESSMENT YEAR 2011-12. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN RESTRICTING THE DISALLOWANCE OF INTEREST EXPENSES U/S 36(1)(III) TO THE EXTENT O F RS.1,36,672/- AS AGAINST RS.3,61,408/-, WITHOUT PROPERLY APPRECIATING THE FA CTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.40,00,000/- MADE U/S 68 OF THE ACT, WITHOUT PROP ERLY APPRECIATING THE FACTS OF THE CASE AND THE MATERIAL BROUGHT ON RECOR D. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE I S HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE APPEAL OF THE R EVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON ITA NO.3675/AHD/15 [I.T.O. VS. M/S. PARAG RAMESHBHA I SHAH] A.Y. 2012-13 - 3 - SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 21/08/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 21/08/20 18