DCIT, Mohali V. M/s Saraswati Agro Chemicals India Pvt. Ltd., Mohali

ITA 390/CHANDI/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1276 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 29-08-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 02-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, B CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 390/CHD/2017 ASSESSMENT YEAR: 2012-13 THE DCIT, VS. M/S SARASWATI AGRO CHEMICALS INDI A PVT. CIRCLE 6(1), LTD., VILLAGE DAO MAJRA, KHARAR, MOHALI KURALI ROAD, DISTT. MOHALI, PUNJAB PAN NO. AAFSC2290A (APPELLANT) (RESPONDENT) APPELLANT BY : SH. MANJIT SINGH, SR.DR RESPONDENT BY : NONE DATE OF HEARING : 29.08.2018 DATE OF PRONOUNCEMENT : 07.09.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 22.12.2016 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, GURGAON [HEREINAFTER REFERRED TO AS CIT(A)]. 2. NONE HAS COME PRESENT ON BEHALF OF THE ASSESSEE. THE LD. DR HAS POINTED OUT THAT TAX EFFECT INVOLVED IN THE PRESENT CASE IS LESS THAN RS. 20 LACS AND HAS FAIRLY ADMITTED THAT CBDT CIRCULAR NO. 3/20 18 IS APPLICABLE TO THIS APPEAL, HENCE, THIS APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED. 2 ITA NO. 390/CHD/2017- SARASWATI AGRO CHEMICALS INDIA PVT LTD., KHARAR,DIS TT. MOHALI 3. IT MAY BE NOTED THAT CBDT VIDE CIRCULAR NO. 3/20 18 DATED 11.07.2018 HAS REVISED THE MONETARY LIMIT UPTO RS.20 LACS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL AND FURTHER VIDE PAR A 13 OF THE SAID CIRCULAR IT HAS BEEN CLARIFIED THAT SAID CIRCULAR IS APPLICABLE RETROSPECTIVELY TO THE PENDING APPEALS ALSO. THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF PRINCIPAL CIT OF INCOME TAX VS. SURINDER KUMAR SINGHAL ITA NO 406- 2016 (O&M) VIDE ORDER DATED 30.1.2017 WHILE FURTHER RELYING UPON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE O F CIT VS. DHANALEKSHMI BANK LTD. (2015) 373 ITR 526 (SC), HAS DISMISSED T HE APPEAL OF THE REVENUE WITHOUT GOING INTO THE MERITS DUE TO LOW TAX EFFECT LEAVING THE QUESTION OF LAW OPEN. IN VIEW OF THE CBDT CIRCULAR NO. 03/2018 (SU PRA) AND IN THE LIGHT OF THE ABOVE REFERRED TO DECISION OF THE HON'BLE JURIS DICTIONAL PUNJAB & HARYANA HIGH COURT (SUPRA), THE PRESENT APPEAL OF THE REVEN UE IS DISMISSED DUE TO LOW TAX EFFECT. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT( A) ON MERITS. THE LEGAL ISSUE RAISED BY THE REVENUE IS BEING LEFT OPEN TO B E ADJUDICATED IN AN APPROPRIATE CASE. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 07.09.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR 3 ITA NO. 390/CHD/2017- SARASWATI AGRO CHEMICALS INDIA PVT LTD., KHARAR,DIS TT. MOHALI