The ITO, Ward-2(1)(3), Ahmedabad V. M/s. I.C. Pandey Agro Pvt. Ltd., Ahmedabad

ITA 696/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4243 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 21-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Keywords: Tax effect
• Section: 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIPKUMAR KEDIA, ACCOUNTANT MEMBER ITA NO.696/AHD/2017 / ASSTT. YEAR: 2012-13 ITO, WARD - 2(1)(3) AHMEDABAD. VS. M/S.I.C. PANDEY AGRO PRIVATE LTD. D/1001, SARTHAK TOWER RAMDEVNAGAR SATELLITE, AHMEDABAD PAN : AADCI 3305 G ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI S.K. DEV, SR.DR ASSESSEE BY : SHRI JIGNESH PARIKH, AR / DATE OF HEARING : 10/05/2019 / DATE OF PRONOUNCEMENT: 10/05/2019 +,/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-2, AHMEDABAD DATED 24.1.2017 PASSED FOR THE ASSTT.YEAR 2012-13. 2. ONLY ISSUE RAISED IN THE APPEAL OF THE REVENUE I S AGAINST THE ORDER OF THE LD.CIT(A) IN DELETING THE ADDITION OF RS.55.60 LAKHS MADE BY THE AO UNDER SECTION 68 OF THE INCOME TAX ACT. 3. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT INVOLVED IN IT. HE SUBMITTED THAT THE TAX EFFECT ON THE ADD ITION DISPUTED BY THE REVENUE OF RS.17,18,040/- WHICH IS BELOW RS.20 LAKHS, AND T HEREFORE, BY VIRTUE OF THE CBDT INSTRUCTION BEARING NO.3 OF 2018 DATED 11.08.2 018, THE REVENUE IS ITA NO.696/AHD/2017 2 PROHIBITED FROM FILING SUCH APPEAL BEFORE THE TRIBU NAL THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AT THE THRESHOLD. THE T AX EFFECT ON THE IMPUGNED ADDITION CALCULATED BY THE ASSESSEE IS AS UNDER: RETURNED INCOME 55,60,000 INCOME ASSESSED BY THE LD.AO TAX ON INCOME ASSESSED BY THE LD.AO INCOME TAX @ 30% 16,68,000/- SURCHARGE (NIL BEING LESS THAN 1 CR) NIL EDUCATION CESS @2% ON TAX 33,360 SECONDARY AND HIGHER SECONDARY EDUCATION CESS @1% ON TAX 16,680 TOTAL TAX 17,18,040 4. THE LD.DR HAS NOT DISPUTED APPLICABILITY OF ABOV E CIRCULAR CITED BY THE LD.COUNSEL FOR THE ASSESSEE, AND HAS NOT POINTED OU T WHETHER THE CASE OF THE REVENUE FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDE D IN THE CIRCULAR OR NOT. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR, WHIC H IS APPLICABLE TO PENDING APPEALS ALSO, AND PROVISIONS OF SECTION 268 A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE APPEAL OF THE REVENUE D ESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MO RE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRC ULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 10 TH MAY, 2019 AT AHMEDABAD. S D / - (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 10/05/2019