The ACIT, Circle-4, Ahmedabad V. M/s. Invida India Pvt.Ltd., Ahmedabad

ITA 536/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9490 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-02-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 02-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K PANDAY
• Assessee Lawyers: N B SHAH AR
• Keywords: Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.536/AHD/2012 ( / ASSESSMENT YEAR : 2007-08) THE ACIT CIRCLE-4 AHMEDABAD / VS. INVIDA INDIA P.LTD. B-801, SAFAL REGASUS PRAHALAD NAGAR ROAD ANAND NAGAR AHMEDABAD-380 015 ./ ./ PAN/GIR NO. : AAAC 19822 K ( ' / APPELLANT ) .. ( #' / RESPONDENT ) ' $ / APPELLANT BY : SHRI A.K. PANDAY, SR.DR #' % $ / RESPONDENT BY : SHRI N.B. SHAH, AR &'( % ) / DATE OF HEARING 23/02/2016 *+, % ) / DATE OF PRONOUNCEMENT 24/02/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-XI, AHMEDABA D [CIT(A) IN SHORT] DATED 22/11/2011 PERTAINING TO ASSESSMENT Y EAR (AY) 2007-08. THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APP EAL:- 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE DISALLOWANCE MADE BY THE AO ON ACCOUNT OF PAYMENT O F ROYALTY ITA NO.536 /AHD /2012 ACIT VS. INVIDA INDIA PVT.LTD. ASST.YEAR 2007-08 - 2 - OF RS.13,32,646/- WITHOUT APPRECIATING THE FACT THA T THE ASSESSEE FAILED TO ESTABLISH NEXUS BETWEEN THE SERVICES REND ERED AND SERVICES REQUIRED FOR THE BUSINESS AND ALSO T FURNI SH NECESSARY EVIDENCES. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSE SSEE CONTENDED THAT AS PER CENTRAL BOARD OF DIRECT TAXES CIRCULAR NO. 2 1/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBE R 2015, THE REVISED LIMIT FOR PREFERRING REVENUE'S APPEALS IS R S. 10 LACS. HE SUBMITTED THAT THE TOTAL TAX LIABILITY IN THE PRESE NT REVENUE'S APPEAL IS BELOW THE PRESCRIBED LIMIT OF RS. 10 LACS. THE L D.COUNSEL FOR THE ASSESSEE, THEREFORE, PLEADED THAT IN VIEW OF THE CB DT CIRCULAR, THE REVENUE'S APPEAL MAY BE DISMISSED AS THE TAX EFFECT BEING BELOW THE PRESCRIBED LIMIT. 3. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR THE AS SESSEE. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BE EN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INC OME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD H AS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS, WHERE IN IT HAS BEEN PROVIDED ITA NO.536 /AHD /2012 ACIT VS. INVIDA INDIA PVT.LTD. ASST.YEAR 2007-08 - 3 - THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS . 10 LAKHS. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS NOT MAINTAINAB LE AND, HENCE, DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON WEDNESDAY, THE 24 TH DAY OF FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( PRAMOD KUMAR ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 24/ 02 /2016 0)..& , '.&../ T.C. NAIR, SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 123 4 / CONCERNED CIT 4. 4 ( ) / THE CIT(A)-XI, AHMEDABAD 5. 5'6 &23 , ) 23 , , 1 / DR, ITAT, AHMEDABAD 6. 689 :( / GUARD FILE. / BY ORDER, #5 //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD