The ITO, Ward-1 (1) (2), RAJKOT-GUJARAT V. M/s Aaryan Mines & Minerals Corporation, RAJKOT-GUJARAT

ITA 430/RJT/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4278 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 21-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND N SONTAKKE
• Assessee Lawyers: SURESH R SHAH
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 430/RJT/2015 WITH CROSS OBJECTION NO. 69/RJT/2015 ( ASSESSMENT YEAR : 2009-10) ITO, WARD-1(1)(2), RAJKOT / VS. M/S. AARYAN MINES & MINERALS CORPORATION, 301, NAKSHATRA-1, 150FT. RING ROAD, RAJKOT ./ ./ PAN/GIR NO. : AANFA0195P ( APPELLANT ) .. ( RESPONDENT & CROSS OBJECTOR ) REVENUE BY : SHRI ARVIND N. SONTAKKE, SR. D.R. ASSESSEE BY : SHRI SURESH R. SHAH, A.R. DATE OF HEARING 16/07/2018 / DATE OF PRONOUNCEMENT 02/08/2018 / 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)-1, RAJKOT ( CIT(A) IN SHORT), DATED 30.06.2015 ARISING IN THE ASSESSMENT ORDER DA TED 26.03.2014 PASSED BY THE ASSESSING OFFICER (AO) U/S. 143(3) R. W.S. 147 OF THE INCOME TAX ACT, 1961; (THE ACT) CONCERNING ASSESSME NT YEAR 2009-10. ITA NO. 430/RJT/15 WITH CO NO.69/AHD/2015 [ITO VS. M/S. AARYAN MINES & MINERALS CORPORATION] A.Y. 2009-10 - 2 - THE ASSESSEE HAS ALSO FILED CROSS-OBJECTION IN THE REVENUES APPEAL SUPPORTING THE ACTION OF THE CIT(A). 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. THE LEARNED CIT(A)-RAJKOT HAS ERRED IN LAW AS WE LL AS ON FACTS IN DELETING ADDITION U/S 40(A)(IA) TO THE TUNE OF RS.61,00,920/ -. 2. THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FA CTS IN ENTERTAINING THE PLEAS OF THE ASSESSEE THAT THE SAME REPRESENTS PURCHASES AND NOT TRANSPORTATION EXPENSES, ALTHOUGH THIS IS AGAINST THE AUDIT REPORT AND BOOKS OF ACCOUNTS, WHICH CLEARLY SHOWS THE SAME AS TRANSPORTATION EXPENSES. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE IS HI T BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018 REVISIN G THE 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 RS.20 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED IS SUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS A ND THEREFORE 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. 3 OF 2018. A CCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. H OWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPE AL ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN A NY MANNER. ITA NO. 430/RJT/15 WITH CO NO.69/AHD/2015 [ITO VS. M/S. AARYAN MINES & MINERALS CORPORATION] A.Y. 2009-10 - 3 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 6. THE ASSESSEE HAS FILED CROSS OBJECTION IN THE RE VENUES APPEAL CHALLENGING THE JURISDICTION OF THE AO TO REOPEN TH E ASSESSMENT UNDER S. 143(3) R.W.S. 147 OF THE ACT. HOWEVER, THE LD.A R FOR THE ASSESSEE AT THE TIME OF HEARING MADE A STATEMENT AT THE BAR THAT THE CROSS OBJECTION RAISED ON BEHALF OF THE ASSESSEE IS NOT P RESSED. THE CROSS OBJECTION IS ACCORDINGLY DISMISSED AS NOT PRESSED. 7. IN THE COMBINED RESULT, THE APPEAL OF THE REVENU E IS DISMISSED, WHEREAS ASSESSEES CROSS OBJECTION IS DISMISSED AS NOT PRESSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 02/08/2018 TRUE COPY S. K. SINHA / COPY OF ORDER FORWARDED TO:- '. / REVENUE 2. / ASSESSEE $. %&' ( / CONCERNED CIT 4. (- / CIT (A) +. ,-. /00&'1 &'1 23% / DR, ITAT, AHMEDABAD 4. .56 7 / GUARD FILE. BY ORDER / 1 /2 &'1 23% THIS ORDER PRONOUNCED IN OPEN COURT ON 02/08/2 018