The ACIT, Circle-7, Ahmedabad V. Smt. Shilpa C.Agarwal, Ahmedabad

ITA 52/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9602 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 28-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 06-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ITA NO: 52/AHD/2012 (ASSESSMENT YEAR: 2008-09) ACIT, CIRCLE 7, AHMEDABAD V/S SMT. SHILPA C. AGARWAL C/O. MEDILINK HOSPITAL, 132FT. RING ROAD, SATELLITE, AHMEDABAD 380015 (APPELLANT) (RESPONDENT) PAN: AAPPA7588Q APPELLANT BY : SHRI RAJDEEP SINGH, SR. D.R . RESPONDENT BY : SHRI KARAN SHAH, A.R. DATE OF HEARING : 28-01-2 016 DATE OF PRONOUNCEMENT : 11 -02-2016 ( )/ ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER 1. THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF CIT(A)-XIV, AHMEDABAD DATED 18.10.2011 FOR A.Y. 2008-09. 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL READS AS UNDER:- ITA NO. 52/AHD/2012, A.Y. 08-09 (ACIT VS. SMT. SHI LPA C. AGARWAL) 2 1. THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRE D IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.28,04,190/-, BEING PROF IT ON THE SALE OF LAND. 2. THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN LAW AND ON FACTS IN RESTRICTING THE DISALLOWANCE OF EXPENDITURE INCURRE D ON MOTOR CAR EXPENSES, MOTOR CAR DEPRECIATION, MOTOR CAR INSURAN CE, MOTOR CAR MAINTENANCE, PETROL EXPENSES AND TELEPHONE EXPENSES TO 10%, INSTEAD OF 20% DISALLOWED BY THE A.O. 3. BEFORE US, AT THE OUTSET, LD. A.R. SUBMITTED THA T THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. THE LD. A.R. ALSO PLACED ON RECORD THE WORKING OF LOW TAX EFFECT. THE LD. D.R. FAIRLY ADM ITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR . 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENU E, WE FIND THAT REVENUE IS AGGRIEVED BY THE AGGREGATE ADDITIONS OF RS.28,59,73 9/-, THE TAX EFFECT OF WHICH IS BELOW RS.10 LACS (I.E. RS.9,72,025/-). AS PER THE ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTI VELY TO THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT O N THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PR ESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE CBDT CIRC ULAR, WE ARE OF THE VIEW THAT THE ITA NO. 52/AHD/2012, A.Y. 08-09 (ACIT VS. SMT. SHI LPA C. AGARWAL) 3 MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF TH E AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTME NT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EF FECT. IN SUCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING AN Y OPINION ON MERITS OF THE CASE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 11 -02-2016 SD/- SD/- ( RAJPAL YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOU NTANT MEMBER AHMEDABAD: DATED 11/02/2016 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR I TAT,AHMEDABAD