The ACIT, Circle-2(1)(2), Ahmedabad V. Kloeckner Desma Machinery Pvt. Ltd., Ahmedabad

ITA 653/AHD/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9380 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 14-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.653/AHD/2018 / ASSTT.YEAR : 2014-15 ACIT, CIR.2(1)(2) AHMEDABAD. VS. KLOECKNER DESMA MACHINERY P.LTD. PLOT NO.10, ROAD NO.1, GIDC KATHWADA AHMEDABAD. PAN : AAACK 8768 N ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI VINOD TANWANI, SR.DR ASSESSEE BY : SHRI JIMI PATEL, AR / DATE OF HEARING : 30/08/2019 / DATE OF PRONOUNCEMENT: 23/09/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST TH E ORDER OF THE LD.CIT(A)-2, AHMEDABAD DATED 21.12.2017 PASSED FOR THE ASSESSMENT YEAR 2014-15. 2. GRIEVANCE OF THE REVENUE IS THAT THE LD.CIT(A) H AS ERRED IN DELETING ADDITION AMOUNTING TO RS.75,05,880/- PAID TO THE FOREIGN COMMISSION AGENTS. 3. THE ID.COUNSEL FOR THE ASSESSEE AT THE OUTSET SU BMITTED THAT DISPUTED AMOUNT IS RS.75,05,880/- THIS ADDITION HAS BEEN DEL ETED BY THE ID.CIT(A). TAX EFFECT ON THE DISPUTED ADDITION WOUL D BE LESS THAN RS.50 LAKHS. HE SUBMITTED THAT BY VIRTUE OF RECENT CBDT CIRCULAR NO.17 OF 2019 DATED 8.8.2019, DEPARTMENT HAS BEEN I NSTRUCTED NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE ITA NO.653/AHD/2018 2 PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMI SSED AT THE THRESHOLD. PER CONTRA, THE ID.DR DID NOT DISPUTE AP PLICABILITY OF THE RECENT CBDT CIRCULAR AND LEFT TO THE TRIBUNAL TO PA SS APPROPRIATE ORDER IN THE MATTER. 4. AFTER HEARING BOTH THE SIDES AND AFTER PERUSAL O F THE ABOVE CBDT INSTRUCTION, WE ARE OF THE VIEW THAT THE PRESENT AP PEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT INSTRUCTION CI TED (SUPRA). IT IS NOT DISPUTED BY THE REVENUE THAT TAX EFFECT ON THE DISPUTED ADDITION IS MORE THAN RS.50 LAKHS, AND THEREFORE, KEEPING IN VI EW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE R EVENUE DESERVES TO BE DISMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON VERIFICATIO N AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUE'S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE AP PEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 23TH SEPTEMBER, 20 19 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 23/09/2019