The Asstt. Commr. Income Tax, Circle-1, RAJKOT-GUJARAT V. Ashwani Metals Pvt. Ltd., JAMNAGAR

ITA 549/RJT/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9078 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-04-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 24-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DM RINDANI
• Keywords: Depreciation; Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] JKTDKSV U;K;IHB] JKTDKSVA VK;DJ VIHYH; VF/KDJ.K] JKTDKSV U;K;IHB] JKTDKSVA VK;DJ VIHYH; VF/KDJ.K] JKTDKSV U;K;IHB] JKTDKSVA VK;DJ VIHYH; VF/KDJ.K] JKTDKSV U;K;IHB] JKTDKSVA IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] LOZJH IZNHI DQEKJ DSFM;K] YS[KK LNL; ,OA EGKOHJ IZL KN] U;KF;D LNL; DS LE{KA LOZJH IZNHI DQEKJ DSFM;K] YS[KK LNL; ,OA EGKOHJ IZL KN] U;KF;D LNL; DS LE{KA LOZJH IZNHI DQEKJ DSFM;K] YS[KK LNL; ,OA EGKOHJ IZL KN] U;KF;D LNL; DS LE{KA LOZJH IZNHI DQEKJ DSFM;K] YS[KK LNL; ,OA EGKOHJ IZL KN] U;KF;D LNL; DS LE{KA (BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) VK;DJ VIHY LA VK;DJ VIHY LA VK;DJ VIHY LA VK;DJ VIHY LA- -- - /ITA. NO: 549/RJT/2014 ( FU/KKZJ.K OKZ FU/KKZJ.K OKZ FU/KKZJ.K OKZ FU/KKZJ.K OKZ /ASSESSMENT YEAR: 2011-12) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, JAMNAGAR V/S ASHWANI METALS PVT. LTD., 64, DIGVIJAY PLOT, JAMNAGAR ( VIHYKFKHZ VIHYKFKHZ VIHYKFKHZ VIHYKFKHZ /APPELLANT) ( IZR;KFKHZ IZR;KFKHZ IZR;KFKHZ IZR;KFKHZ /RESPONDENT) LFKK;H YS[KK LA LFKK;H YS[KK LA LFKK;H YS[KK LA LFKK;H YS[KK LA- -- - /PAN: AADCA 9579 Q VIHYKFKH DH VKSJ LS VIHYKFKH DH VKSJ LS VIHYKFKH DH VKSJ LS VIHYKFKH DH VKSJ LS /APPELLANT BY SHRI C. S. ANJARIA, SR. D.R. IZR;KFKHZ DH VKSJ LS IZR;KFKHZ DH VKSJ LS IZR;KFKHZ DH VKSJ LS IZR;KFKHZ DH VKSJ LS /RESPONDENT BY SHRI D.M. RINDANI, A.R. ( )/ ORDER LQUOKBZ DH RKJH[K@ DATE OF HEARING : 03/04/201 7 ?KKSK.KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 05/04/2017 PER MAHAVIR PRASAD, JUDICIAL MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF LD. CIT(A), JAMNAGAR DATED 16/07/2014 PERTAINING TO A.Y. 2011-1 2. ITA NO. 549 /AHD/2014 A.Y. 2011-12 2 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE READS AS U NDER:- (I) THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING TO ALLOW 50% DEPRECIATION IN RESPECT OF HONDA CITY JA ZZ CAR AGAINST 15% ALLOWED BY THE AO. (II) THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FAC TS IN DIRECTING TO ALLOW A SUM OF RS.26,25,000/- ON ACCOUNT OF EXCESS REMUNERATION CLAIMED BY THE DIRECTORS OF THE COMPANY. 3. THE LD.AR OF THE ASSESSEE POINTED OUT BY WAY OF WRI TTEN SUBMISSIONS THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUN T OF LOW TAX EFFECT AND, THEREFORE, LIABLE TO BE DISMISSED. THE LD. SR. DR F AIRLY ADMITTED THAT THE TAX EFFECT ON THE IMPUGNED ADDITION IN THIS APPEAL IS L ESS THAN THE LIMIT PRESCRIBED BY THE CBDT CIRCULAR OF 10/12/2015 BEARI NG NO. 21 OF 2015. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENU E, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE CIRCULAR OF CENTRAL BOARD OF DIRECT TAXE S (CBDT) DATED 10/12/2015 (CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEAL IS TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOM E TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO THE PEND ING APPEAL ALSO. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT O N THE ADDITION WHICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AN D IN THE ABSENCE OF ANY MATERIAL ON RECORD POINTED OUT BY THE REVENUE TO DE MONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPEC IFIED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ARE OF THE VIEW THAT TH E MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBD T CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEALS OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EF FECT. IN SUCH ITA NO. 549 /AHD/2014 A.Y. 2011-12 3 CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WIT HOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. HOWEVER, IN CASE T HERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR AN Y REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN T O THE REVENUE TO SEEK REVIVAL OF THE APPEAL. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN OPEN COURT ON 05/04/2017 SD/- SD/- IZ IZIZ IZNHI DQEKJ DSFM;K NHI DQEKJ DSFM;K NHI DQEKJ DSFM;K NHI DQEKJ DSFM;K EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN YKS[KK L YKS[KK L YKS[KK L YKS[KK LNL; NL;NL; NL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: 05/04/2017 PRITI YADAV, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT-JAMNAGAR. 5. , , / DR, ITAT, AHMEDABAD 6. !' #$ / GUARD FILE. / BY ORDER, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , ! / ITAT, AHMEDABAD TRUE COPY