The ITO, Ward-5(1), Ahmedabad V. M/s. Neo Impex Pvt. Ltd., Ahmedabad

ITA 536/AHD/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0146 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 24-10-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 20-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business expenditure; Retrospective amendment; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER INCOME TAX OFFICER, WARD - 5(1), AHMEDABAD (APPELLANT) VS M/S. NEO IMPEX PVT. LTD, 417, NALANDA ENCLAVE, PRITAM NAGAR, ELLISBRIDGE, AHMEDABAD - 380006 PAN: AABCN6396E (RESPONDENT) REVENUE BY : S H RI PRASOON KABRA , SR. D . R. ASSESSEE BY: S H RI DIVYANG SHAH , A.R. DATE OF HEARING : 24 - 10 - 2 016 DATE OF PRONOUNCEMENT : 28 - 10 - 2 016 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT M EMBER : - THIS REVENUE S APPEAL FOR A.Y. 2010 - 11 , AR I SES FROM ORDER OF THE CIT(A) - XI, AHMEDABAD DATED 02 - 12 - 2013 IN APPEAL NO. CIT(A) - XI/155/WD - 5(1)/12 - 13 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 536 / A HD/20 14 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 536 /AHD/20 14 A.Y. 2010 - 11 PAGE NO ITO VS. M /S. NEO IMPEX PVT. LTD. 2 2. THE REVENU E S TWIN SUBSTANTIVE GROUNDS CHALLENGE THE LOWER APPELLATE ORDER DELETING DISALLOWANCE OF BUSINESS EXPENDITURE AND THAT ON ACCOUNT OF INCREASE IN SHARE CAPITAL EXPENSES OF RS.28,46,850/ - LACS AND RS. 49,000/ - ; RESPECTIVELY. 3. DURING THE COURSE OF HEARIN G, THE LD. COUNSEL DREW OUR ATTENTION TOWARDS TAX EFFECT INVOLVED IN THIS APPEAL OF LESS THAN 10 LACS. THERE IS NO DISPUTE THAT THE NET TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN RS. 10 LACS. LD. D.R. DID NOT OBJECT THE SAME. WE FIND THAT THE CENTRAL BOARD OF DIRECT TAXES; HEREAFTER THE BOARD HAS ISSUED THE CIRCULAR NO. 21/2015 DATED 10 - 12 - 2015 CLEARLY ENVISAGING THEREIN THAT DEPARTMENT S PENDING APPEALS BEFORE THE TRIBUNAL/HIGH COURTS ARE TO BE WITHDRAWN/NOT PRESSED AS PER THE ABOVE STATED CIRCULAR. THE SAME HAS BEEN DECLARED TO BE HAVING RETROSPECTIVE EFFECT IN OTHER WORDS. WE TAKE INTO CONSIDERATION THE ABOVE STATED BOARD S CIRCULAR AND DISMISS THE INSTANT APPEAL ACCORDINGLY. 4 . THIS REVENUE S APPEAL IS DISMISSED AS HAVING LOW TAX EFFECT. ORDER PR ONOUNCED IN THE OPEN C OURT ON 28 - 10 - 201 6 SD/ - SD/ - ( S.S. GODARA ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 28 /10 /2016 AK / COPY OF ORDE R FORWARDED TO: - I.T.A NO. 536 /AHD/20 14 A.Y. 2010 - 11 PAGE NO ITO VS. M /S. NEO IMPEX PVT. LTD. 3 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,