ITO, ward-4(1)(2), Ahmedabad V. Steel Konnecdt (India), Pvt Ltd, Ahmedabad

ITA 473/AHD/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0093 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 20-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.473/AHD/2019 / ASSTT.YEAR : 2015-16 ITO, WARD - 4(1)(2) AHMEDABAD. VS. STEEL KONNECT INDIA P.LD. PLOT NO.86, 90, 91 SARDAR PATEL RING ROAD NR.HAHIJAN CIRCLE HATHIJAN, AHMEDABAD. PAN : AAQCS 9200 H ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI S.S. SHUKLA, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 23/07/2021 ! / DATE OF PRONOUNCEMENT: 23/07/2021 / O R D E R PER RAJPAL YADAV, VICE-PRESIDENT THIS IS REVENUES APPEAL DIRECTED AGAINST ORDER OF THE LD.CIT(A)-4, AHMEDABAD DATED 29.1.2019 PASSED FOR THE ASSTT.YEAR 2015-16. 2. IN THIS APPEAL, THE GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT(A) HAS ERRED IN DELETING DISALLOWANCE OF ADDITIONAL DE PRECIATION OF RS.64,92,560/-. 3. AT THE OUTSET, IT IS NOTICED BY THE BENCH THAT I N FORM NO.36, IN GROUND OF APPEAL COLUMN, THE DEPARTMENT HAS MENTION ED TOTAL TAX EFFECT ON THE DISPUTED DISALLOWANCE AROUND RS.22,06,820/-, AND THEREFORE, A QUERY WAS PUT TO THE LD.DR ABOUT MAINTAINABILITY OF APPEAL OF THE REVENUE BEFORE THE TRIBUNAL IN VIEW OF RECENT CBDT CIRCULAR NO.17 OF 2019 PROHIBITING FILING OF APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL ITA NO.473/AHD/2019 2 WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THE LD.DR D ID NOT DISPUTE APPLICABILITY OF THE RECENT CBDT CIRCULAR AND LEFT TO THE TRIBUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. ADMITTEDLY TAX EFFECT IN THE PRESENT APPEAL IS B ELOW RS.50 LAKHS, AND THEREFORE, KEEPING IN VIEW THE ABOVE CBDT CIRCU LAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF TH E VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMIS SED AT THE THRESHOLD. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT O N THE DISPUTED ADDITION IS MORE, OR REVENUES CASE FALLS WITHIN TH E AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SU CH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE A CT 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 23 RD JULY, 2021 AT AHMEDABAD. S D / - (WASEEM AHMED) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT