INCOME TAX OFFIER ,WARD 1(1), NAGPUR V. M/S SRIVARI BUILDERS & DEVELOPERS , NAGPUR

ITA 70/NAG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9196 (ITAT-NAGPUR)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 02-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U U KASAR
• Keywords: Tax effect
• Section: 43CA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO. 70 /NAG /201 8 / ASSESSMENT YEAR : 20 14 - 15 THE INCOME TAX OFFICER, WARD 1(1), NAGPUR ....... / APPELLANT / V/S. M/S. SRIVARI BUILDERS & DEVELOPERS, PLOT NO. 122, NEAR PAKODAWALA SOMWARI BAZAR ROAD, SITABULDI, NAGPUR 440012 PAN : ACBFS6172L / RESPONDENT ASSESSEE BY : SHRI K.P. DEWANI REVENUE BY : SHRI U.U. KASAR / DATE OF HEARING : 2 8 - 03 - 2019 / DATE OF PRONOUNCEMENT : 2 8 - 03 - 201 9 2 ITA NO . 70 /NAG/201 8 , A.Y. 20 14 - 15 / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1, NAGPUR DATED 29 - 01 - 2018 FOR THE ASSESSMENT YEAR 20 14 - 15 . 2. SHRI K.P. DEWANI 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. 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 LD. DR AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. AR OF THE ASSESSEE HAS F ILED WORKING INDICATING THAT THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETING THE ADDITION OF R S . 35,03,484/ - U/S. 43CA O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) AND RS.2,65,730/ - U/S. 40 ( A )(IA) OF THE ACT. PRIMA - FACIE, THE TAX EFFECT INVOLVED 3 ITA NO . 70 /NAG/201 8 , A.Y. 20 14 - 15 IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE 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 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 APPROACH 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 THURSDAY, THE 2 8 TH DAY OF MARCH, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / NAGPUR ; / DATED : 2 8 TH MARCH, 2019. RK 4 ITA NO . 70 /NAG/201 8 , A.Y. 20 14 - 15 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 1, NAGPUR 4. THE PR. COMMISSIONER OF INCOME TAX - I/II/III, NAGPUR 5. , , , / DR, ITAT, NAGPUR BENCH, NAGPUR . 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, NAGPUR