ITO, WARD- 5 (3), Nagpur V. SHREE VENKATASH CASTING PVT. LTD., Nagpur

ITA 62/NAG/2015

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9226 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 24-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U U KASAR
• Assessee Lawyers: S C THAKAR; C J THAKAR
• Keywords: Tax effect
• Section: 40A(3); 40(a)(ia)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO. 62 /NAG /201 5 / ASSESSMENT YEAR : 20 0 7 - 08 THE INCOME TAX OFFICER, WARD 5(3), NAGPUR ....... / APPELLANT / V/S. SHRI VENKATESH CASTING PVT. LTD., 156, SARDA COMPLEX, QUETTA COLONY, NAGPUR 440008 PAN : AAICS9619L / RESPONDENT ASSESSEE BY : S /S HRI C.J. THAKAR & S.C. THAKAR REVENUE BY : SHRI U.U. KASAR / DATE OF HEARING : 2 9 - 03 - 2019 / DATE OF PRONOUNCEMENT : 2 9 - 03 - 201 9 / ORDER PER VIKAS AWASTHY, JM : TH IS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - I, NAGPUR DATED 1 4 - 11 - 2014 FOR THE ASSESSMENT YEAR 20 0 7 - 08. 2 ITA NO . 62 /NAG/201 5 , A.Y. 20 0 7 - 08 2. SHRI C.J. THAKAR AND SHRI S.C. THAKAR APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL BY REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018. THE LD. COUN SEL FOR THE ASSESSEE HAS FURNISHED WORKING OF TAX EFFECT INVOLVED IN THE APPEAL. ACCORDING TO THE WORKING, TAX EFFECT IS RS.15,84,414/ - INCLUDING SURCHARGE AND CESS. 3. SHRI SHRI U.U. KASAR REPRESENTING THE DEPARTMENT STATED THAT APPARENTLY IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.20 LAKHS. 4. WE HAVE HEARD THE SUBMISSIONS OF RIVAL SIDES AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETIN G THE ADDITION U/S. 40A(3) & 40(A)(IA) O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) ON ACCOUNT OF PAYMENTS MADE TOWARDS TRANSPORTATION CHARGES. THERE ARE OTHER GROUNDS ASSAILING FINDINGS ON MINOR ADDITIONS OF SHORTAGE OF STOCK AND RAT E OF GROSS PROFIT TO BE APPLIED ON UNACCOUNTED SALES. PRIMA - FACIE, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT CIRCULAR FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR NO. 3/2018 , DATED 11 - 07 - 2018 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE 3 ITA NO . 62 /NAG/201 5 , A.Y. 20 0 7 - 08 CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO AP PROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS MENTIONED IN PARA 10 OF THE CIRCULAR (SUPRA). 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON FRIDAY, THE 2 9 TH DAY OF MARCH, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / NAGPUR ; / DATED : 2 9 TH MARCH, 2019. RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - I , NAGPUR 4. / THE CIT - I, NAGPUR 5. , , , / DR, ITAT, NAGPUR BENCH, NAGPUR . 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, NAGPUR