The DCIT, Circle-4(1)(1), Ahmedabad V. Skaps Industries India Pvt. Ltd., Ahmedabad

ITA 621/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1150 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 10-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Audit objection; Earning of tax free income; Tax effect
• Section: 14A; 10B

Judgement Text

ITA NO. 621/AHD/2017 DCIT VS. SKAPS INDUSTRIES INDIA PVT LTD ASSESSMENT YEAR: 2010-11 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] ITA NO.621/AHD/2017 ASSESSMENT YEAR: 2010-11 ACIT, ..................APPELLANT CIRCLE-4(1)(1), AHMEDABAD VS. SKAPS INDUSTRIES INDIA PRIVATE LIMITED ............................RESPONDENT PLOT NO.A-20, SURVEY NO. 423, MAHAGUJARAT INDUSTRIAL ESTATE, AHMEDABAD-BAVLA HIGHWAY, MORAIYA, SANAND, AHMEDABAD-382210 [PAN : AADCP 2779 D] APPEARANCES BY: LALIT P JAIN, FOR THE APPELLANT PARIN SHAH, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 12.09.2018 DATE OF PRONOUNCING THE ORDER : 17.09.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 5 TH DECEMBER, 2016, PASSED BY THE LEARNED CIT(A)-7, AH MEDABAD FOR THE ASSESSMENT YEAR 2010-11, ON THE FOLLOWING GROUNDS: (1) WHETHER THE LD. CIT(APPEALS) IS RIGHT IN LAW AND ON FACTS IN REDUCING THE EXEMPT INCOME U/S 10B OF THE ACT TO THE EXTENT OF R S.34,12,104/- (2) WHETHER THE LD. CIT(APPEALS) IS RIGHT IN LAW AN D ON FACTS IN DELETING THE ADDITION OF RS.2,94,465/- MADE ON ACCOUNT OF 14A OF THE ACT. 2. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018.THE LEA RNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 3/2018 IN F.NO.279/ MISC. 142/2007-ITJ (PT) DATED 11 TH ITA NO. 621/AHD/2017 DCIT VS. SKAPS INDUSTRIES INDIA PVT LTD ASSESSMENT YEAR: 2010-11 PAGE 2 OF 2 JULY, 2018, VIDE WHICH IT HAS BEEN DECIDED BY THE B OARD THAT NO DEPARTMENTAL APPEALS SHOULD BE FILED BEFORE THE TRIBUNAL IF THE TAX EFFE CT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTRUCTIONS WHEREIN IT HAS B EEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, WHERE THE CONSTITUTIONAL VALIDIT Y OF THE PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHERE BOARDS ORDER, NOTIFICATIO N, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT OR WHERE THE ADDITION RELATES TO UND ISCLOSED FOREIGN ASSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES N OT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS. THERE FORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 17 TH SEPTEMBER, 2018 SD/- SD/- MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 17 TH DAY OF SEPTEMBER, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ................LOW TAX EFFE CT COVERED BY CBDT CIRCULAR..12.09.2018.... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 12.09.2018..... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 17.09.2018... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: . 17.09.2018.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . 17.09.2018. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......