Deputy Commissioner of Income-tax, V. M/s. manisha Infrastructure Pvt. Ltd., Aurangabad

ITA 707/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0323 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-09-2018
• Assessment Year: 2011-2012
• Appeal Filed On: 15-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUN E . , , ! , ' # BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AW ASTHY, JM . / ITA NO.707/PUN/2016 '% & '& / ASSESSMENT YEAR : 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, AURANGABAD. .... / APPELLANT (% / V/S. M/S. MANISHA INFRASTRUCTURE PVT. LTD. 319, LABH CHAMBERS, STATION ROAD, AURANGABAD-431 005 PAN : AAECM2179F / RESPONDENT )*# . /CO.NO.15/PUN/2018 '% & '& /ASSESSMENT YEAR: 2011-12 (ARISING OUT OF ITA NO.707/PUN/2016) M/S. MANISHA INFRASTRUCTURE PVT. LTD. 319, LABH CHAMBERS, STATION ROAD, AURANGABAD-431 005 PAN : AAECM2179F .. / CROSS OBJECTOR (% / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, AURANGABAD. / RESPONDENT REVENUE BY : SHRI SUDHENDU DAS ASSESSEE BY : SHRI SUNIL GANOO 2 ITA NO.707/PUN/2016 CO. NO.15/PUN/2018 A.Y.2011-12 / DATE OF HEARING : 11.09.2018 / DATE OF PRONOUNCEMENT : 12.09.2018 + / ORDER PER VIKAS AWASTHY, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX (APPEALS)-1, AURANGABAD DATED 01.01.2016 FOR THE ASSESSMENT YEAR 2011-12. THE ASSESSEE HAS FILED CRO SS OBJECTIONS IN THE APPEAL FILED BY REVENUE. 2. THE REVENUE IN APPEAL HAS ASSAILED THE FINDINGS OF COMMIS SIONER OF INCOME TAX (APPEALS) BY RAISING FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON THE ISSUE OF DEPRE CIATION CLAIMED BY THE COMPANY ON CARS REGISTERED IN THE NAME OF THE DIREC TORS, IN VIEW OF DECISION OF HON'BLE ITAT, MUMBAI DATED 19.04.2013. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE CIT(A) HAS ERRED IN DELETING THE ADDITION MADE U/S.40A(2)(B) AND NOT CONSIDERING THE DETAILED REMAND REPORT IN THAT REGARD. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF VARIOU S EXPENSES, AND NOT CONSIDERING THE DETAILED REMAND REPORT IN THAT REGA RD. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ORDER OF CIT(A), AURANGABAD BE QUASHED AND THAT THE ORDER OF THE AO BE RESTORED. 5. ON THE FACTS AND CIRCUMSTANCES THE APPELLANT CRA VES LEAVE TO ADD, AMEND OR ALTER ANY GROUNDS OF APPEAL. 3. SHRI SUDHENDU DAS REPRESENTING THE DEPARTMENT SUBM ITTED AT THE OUTSET THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LE SS THAN RS.20 LAKHS. THE LD. DR SUBMITTED THAT THE AGGREGATE OF THE ADDITIONS DELETED BY THE COMMISSIONER OF INCOME TAX (APPEALS) IS RS.49,34,502/-. THE LD. DR FURNISHED A COPY OF LETTER DATED 10.09.2018 FROM ASSISTAN T COMMISSIONER OF 3 ITA NO.707/PUN/2016 CO. NO.15/PUN/2018 A.Y.2011-12 INCOME TAX, CIRCLE-1, AURANGABAD STATING THAT OVERALL TAX EFFECT INVOLVED IN THE APPEAL IS RS.16,39,118/-. 4. SHRI SUNIL GANOO APPEARING ON BEHALF OF THE ASSESSEE CO NCURRED WITH THE SUBMISSIONS OF LD. DR AND PRAYED THAT IN VIEW OF CBDT CIRCULAR NO. 3/2018, DATED 11.07.2018, APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED. THE LD. AR ALSO FURNISHED WORKING OF TAX EFFECT INVOLVED IN THE APPEAL. 5. WE HAVE HEARD THE SUBMISSIONS MADE BY REPRESENTATIV ES OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW. THE R EVENUE IN APPEAL HAS ASSAILED THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE FOLLOWING ADDITIONS/DISALLOWANCES BY ASSESSING OFFICER: - DEPRECIATION ON CARS - ADDITION U/S.40A(2)(B) OF THE ACT. - AMOUNT VOLUNTARILY OFFERED BY ASSESSEE TO COVER UP DISCREPANCIES THE AGGREGATE OF ABOVE ADDITIONS DELETED BY THE COMMISSIO NER OF INCOME TAX(APPEALS) ACCORDING TO BOTH THE SIDES IS RS.49,34,502/-. UNDISPUTEDLY, THE TAX EFFECT ON THE ABOVE ADDITIONS DELETED BY THE COMMISSIO NER OF INCOME TAX (APPEALS) IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPART MENT. THE CBDT VIDE CIRCULAR NO.3/2018, DATED 11.07.2018 HAS RAISED THE MO NETARY 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. W ITHOUT 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 . 4 ITA NO.707/PUN/2016 CO. NO.15/PUN/2018 A.Y.2011-12 6. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE R EQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PR ESCRIBED IN PARA 10 OF THE CIRCULAR (SUPRA.). ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED. 7. SINCE, APPEAL OF THE REVENUE IS DISMISSED, THE CROSS OBJ ECTION FILED BY THE ASSESSEE BECOMES INFRUCTUOUS AND HENCE, DISMISSED AS SUCH. 8. IN THE RESULT, APPEAL OF THE REVENUE AND CROSS OBJEC TION FILED BY ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 12 TH DAY OF SEPTEMBER, 2018. SD/- SD/- ( . / D. KARUNAKARA RAO ) ( ! /VIKAS AWASTHY) / ACCOUNTANT MEMBER ! / JUDICIAL MEMBER / PUNE; '# / DATED : 12 TH SEPTEMBER, 2018 SB + , )'-. / '- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (APPEALS)-1, AURANGABAD. 4. THE PR. CIT-1, AURANGABAD. 5. &'( !!)* , + )* , ,-. , / DR, ITAT, A BENCH, PUNE. 6. (/0 12 / GUARD FILE. // TRUE COPY // +3 / BY ORDER, !4 ). / PRIVATE SECRETARY + )* , / ITAT, PUNE.