The Income Tax Officer, Amritsar. V. M/s Ess Kay International Exports, Amritsar.

ITA 529/ASR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0743 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 24-05-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 13-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A N MISRA
• Keywords: Tax effect
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A NO.529(ASR)/2015 ASSESSMENT YEAR: 2001-02 INCOME TAX OFFICER, WARD-5(1), AMRITSAR. VS. M/S. ESS KAY INTERNATIONAL EXPORTS, 389-GREEN AVENUE, AMRITSAR. PAN:AAAFE5499B (APPELLANT) (RESPONDENT) CROSS OBJECTION NO.27(ASR)/2015 (ARISING OUT OF ITA NO.529(ASR)/2015) ASSESSMENT YEAR: 2001-02 M/S. ESS KAY INTERNATIONAL EXPORTS, 389-GREEN AVENUE, AMRITSAR. PAN:AAAFE5499B VS. INCOME TAX OFFICER, WARD-5(1), AMRITSAR. (CROSS OBJECTOR) (RESPONDENT) APPELLANT BY: SH. A. N. MISRA (DR.) RESPONDENT BY: WRITTEN SUBMISSION. DATE OF HEARING: 24.05.2016 DATE OF PRONO UNCEMENT: 24.05.2016 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY REVENUE AGAINST THE ORDER OF LEARNED CIT(A), AMRITSAR, DATED 28.07.2015, FOR ASST. YEAR : 2001-02. 2. THE ONLY ISSUE RAISED BY REVENUE IN THIS APPEAL IS THE DELETION OF PENALTY BY LEARNED CIT(A), WHICH WAS IM POSED BY ASSESSING OFFICER. THE APPEAL WAS EARLIER HEARD ON 17.05.2016 ITA NO.529 & C.O.NO .27 (ASR)/2015 ASST. YEAR: 2001-0 2 2 ALONG WITH OTHER APPEALS OF REVENUE AND ALL THE APP EALS OF REVENUE WERE PRONOUNCED TO BE DISMISSED ON ACCOUNT OF LOWER TAX EFFECT. HOWEVER, WHILE GIVING DICTATION IT WAS OBSERVED THAT IN THE PRESENT APPEAL THE TAX EFFECT WAS MORE THAN RS.10,00,000/-, THEREFORE, THE APPEAL WAS FIXED FOR CLARIFICATIONS. 3. AT THE TIME OF HEARING, IT WAS FOUND THAT ASSESS EE HAD MOVED AN APPLICATION FOR ADJOURNMENT OF THE CASE AN D BESIDES HE HAD ALSO FILED WRITTEN SUBMISSIONS. AFTER GOING THROUGH THE WRITTEN SUBMISSIONS, WE FOUND THAT THE APPEAL OF RE VENUE CAN BE DISPOSED OFF, THEREFORE, THE ADJOURNMENT APPLICA TION WAS REJECTED. 4. THE LEARNED DR, RELIED UPON THE ORDERS OF AUTHOR ITIES BELOW AND SUBMITTED THAT THE TAX EFFECT IN THIS CAS E WAS MORE THAN RS.10,00,000/-. 10. WE HAVE HEARD THE LEARNED DR AND HAVE GONE THRO UGH THE MATERIAL PLACED ON RECORD AND WRITTEN SUBMISSIONS F ILED BY LEARNED AR. WE FIND THAT IN THE QUANTUM PROCEEDINGS , THE ASSESSING OFFICER HAD RAISED THREE ISSUES FOR CALCU LATION OF DEDUCTION U/S 80HHC OUT OF WHICH THE LEARNED CIT(A) HAD ALLOWED RELIEF ON ACCOUNT OF FOREIGN REMITTANCES, D EPB AND NETTING OF INTEREST. THE DEPARTMENT FILED APPEAL ON LY ON ONE EFFECTIVE GROUND I.E., NETTING OF INTEREST, THEREFO RE, THE NET ITA NO.529 & C.O.NO .27 (ASR)/2015 ASST. YEAR: 2001-0 2 3 ADDITION ON WHICH REVENUE WAS AGGRIEVED WAS TO THE EXTENT OF RS.12,50,148/- AND NOT RS.27,94,753/- AND THEREFORE , THE TAX EFFECT IN THIS IS LESS THAN RS.10,77,378/- AS MENTI ONED IN THE GROUNDS OF APPEAL. IN VIEW OF THE ABOVE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AS PER CBDT INSTRUCTION NO. 21 OF 2015, DATED 10 TH DEC., 2015. 5. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 6. THE CROSS OBJECTIONS FILED BY ASSESSEE BEING SUP PORTIVE OF THE ORDER OF LEARNED CIT(A) ALSO DO NOT SURVIVE. IN VIEW OF THE ABOVE, THE CROSS OBJECTIONS ARE ALSO DISMISSED. 7. IN NUTSHELL, THE APPEAL FILED BY REVENUE AND CRO SS OBJECTIONS FILED BY ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH MAY, 2016. SD/- S D/- (A.D. JAIN) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 24.05.2016 /PK/PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER