The ACIT,(OSD)Circle-8, Ahmedabad V. Sagar Agencies Pvt.Ltd., Ahmedabad

ITA 603/AHD/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9954 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 09-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M J SHAH
• Keywords: Depreciation; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.603/AHD/2012 ( / ASSESSMENT YEAR : 2007-08) THE ACIT (OSD) CIRCLE-8 AHMEDABAD / VS. SAGAR AGENCIES 803, SAHAJANAND COMPLEX SHAHIBAUG ROAD AHMEDABAD-380 002 # ./ ./ PAN/GIR NO. : AADCS 0473P ( #% / APPELLANT ) .. ( &#% / RESPONDENT ) #%' / APPELLANT BY : SHRI JAMES KURIAN, SR.DR &#%(' / RESPONDENT BY : SHRI M.J. SHAH, AR )*(+ / DATE OF HEARING 17/11/2016 ,-./(+ / DATE OF PRONOUNCEMENT 17/11/2016 / O R D E R PER PRADIP KUMAR KEDIA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-XIV, AHMEDABAD [CIT(A) IN SHORT] DATED 12/12/2011 FOR THE ASSESSMENT YEAR (AY ) 2007-08. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- ITA NO.603/AHD/ 2012 ACIT VS. SAGAR AGENCIES ASST.YEAR 2007-08 - 2 - 1) THE LD.COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, A HMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISAL LOWANCE OF RS.13,47,262/- MADE BY THE ASSESSING OFFICER ON ACC OUNT OF DEPRECIATION ON WIND MILL. 2) THE LD.COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, AH MEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWA NCE OF RS.18,421/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF AMORTIZ ATION OR LEASE RENT IN RESPECT OF LAND. 3) THE LD.COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, AH MEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWA NCE OF INTEREST EXPENSES AND IN RESTRICTING THE DISALLOWANCE TO RS.10,000/- AS AGAINST RS.94,827/- MADE BY THE ASSESSING OFFICER U /S.14A OF THE ACT. 4) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, AHMEDA BAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 5) IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD.CO MMISSIONER OF INCOME-TAX (APPEALS)-XIV, AHMEDABAD MAY BE SET-A-SI DE AND THAT OF THE ORDER OF THE ASSESSING OFFICER BE RESTORED. 3. THE LD.AR FOR THE ASSESSEE SUBMITTED THAT TH E APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX E FFECT AND, THEREFORE, LIABLE TO BE DISMISSED. THE LD.DR FOR THE REVENUE F AIRLY ADMITTED THAT THE TAX EFFECT ON THE IMPUGNED ADDITIONS IN THE APP EAL IS LESS THAN THE LIMIT PRESCRIBED BY THE CBDT CIRCULAR OF 10/12/201 5 BEARING NO. 21 OF 2015. ITA NO.603/AHD/ 2012 ACIT VS. SAGAR AGENCIES ASST.YEAR 2007-08 - 3 - 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI AL AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED B Y THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF CIT (A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE CIRCULAR OF CENTR AL BOARD OF DIRECT TAXES (CBDT) DATED 10/12/2015 (CIRCULAR NO. 21 OF 2 015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINST RELIEF G IVEN BY CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TAX EFFECT, EXCL UDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCT IONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS ALSO. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITIONS WHICH ARE IN DISPUTE, THE TAX EFFECT IS LESS THAN RS. 10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD POINTED OUT BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTIONS SPECIFIED IN CLAUSE (8) OF THE AFORESAID CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID CBDT CIRCULAR WOU LD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. IN S UCH CIRCUMSTANCES, WE DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING AN Y OPINION ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE A FORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. ITA NO.603/AHD/ 2012 ACIT VS. SAGAR AGENCIES ASST.YEAR 2007-08 - 4 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 17/11/2016 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 17/ 11 /2016 3..),.)../ T.C. NAIR, SR. PS !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-XIV, AHMEDABAD 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<* / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 17.11.16 (COVERED CASE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 17.11.16 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.17.11.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 17.11.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER