A.C.I.T.. 2(1), RAIPUR V. M/S ANUPCHAND TILOKCHAND JEWELLERS P. LRD, RAIPUR

ITA 74/BIL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8957 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 05-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SHABANA PARVEEN
• Assessee Lawyers: R B DOSHI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH , RAIPUR BEFORE : SHRI N.S.SAINI, A M & SHRI PAV AN KUMAR GADALE, J M ITA NO. 74 / RPR /20 1 5 (ASSESSMENT YEAR : 20 05 - 20 06 ) A CIT - 2 (1), RAIPUR(CG) V S M/S ANOOPCHAND TILOKCHAND JEWELLERS PVT. LTD., ANUP PLAZA, SADA R BAZAR, RAIPUR(C.G.) P AN NO. : A A ECA 6005 A (APPELLANT ) .. TSEDNEPSER REVENUE BY : MRS.SHABANA PARVEEN , DR ASSESSEE BY : SHRI R.B.DOSHI , AR DATE OF HEARING : 1 8 / 01 /201 8 DATE OF PRONOUNCEMENT 18 / 01 /201 8 / O R D E R PER SHRI N.S.SAINI , A M : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A ), RAIPUR , DATED 10.02.201 5 FOR THE ASSESSMENT YEAR 20 05 - 2006 . 2. THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL : - A. 'WHETHER ON FACTS AND LAW AND IN CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN ALLOWING THE DEDUCTION U/S.37(1) OF THE INCOME TAX ACT, 1961 AMOUNTING TO RS.17,47,375/ - ON ACCOUNT OF DIRECTORS EDUCATION EXPENSES WHEN THE ASSESSEE FAILED TO ESTABLISH COMMER CIAL EXPEDIENCY OF SUCH EXPENDITURE ?' B. 'THE ORDER OF THE LD. CIT (A) IS ERRONEOUS BOTH IN LAW AND ON FACTS?' C . 'ANY OTHER GROUND THAT MAY BE ADDUCED AT THE TIME OF HEARING?' 3. AT THE OUTSET, THE AR OF THE ASSESSEE SUBMITTED THAT THE TOTAL TAX DEMA ND IN THIS APPEAL AS EVIDENT FROM THE ORDER OF CIT(A) IS RS.8,69,590/ - THE PRESENT APPEAL OF THE REVENUE IS AGAINST THE ORDER OF CIT(A) DELETING THE ADDITION OF RS.17,47,375/ - ON ACCOUNT OF DIRECTORS EDUCATION EXPENSES . THUS, THE TAX EFFECT IN THE PRESENT APPEAL OF REVENUE IS BELOW RS.10 LAKHS . T HEREFORE, IN VIEW OF THE CBDT CIRCULAR NO.21/2015, DATED ITA NO. 74 /RPR/201 5 2 10 TH DECEMBER, 2015, APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND, HENCE, LIABLE TO BE DISMISSED. 4. ON THE OTHER HAND, LD.DR FOR THE REVENUE AGREED WI TH THE SUBMISSION OF LD.AR OF THE ASSESSEE. 5. WE FIND THAT THE CBDT IN CIRCULAR NO.21/2015, DATED 10 TH DECEMBER, 2015, HAS STATED THAT, AS A MEASURE FOR REDUCING LITIGATION, IT WAS INCREASING THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEF ORE THE ITAT AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT. THE SAID LIMIT FOR NOT FILING APPEAL TO THE TRIBUNAL WAS FIXED AT RS.10 LAKHS. THE CBDT HAS FURTHER STATED THAT THE SAID INSTRUCTION SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AND THAT ALL APPEALS BELOW THE SPECIFIED TAX LIMITS SHOULD BE WITHDRAWN/NOT PRESSED. HOWEVER, APPEALS BEFORE THE SUPREME COURT ARE TO BE GOVERNED BY THE LIMITS OPERATIVE AT THE TIME THAT THE APPEAL WAS FILED. THE SAID CIRCULAR OF THE CBDT IS BINDING ON THE OFFICERS OF INCOME TAX DEPARTMENT. IN VIEW OF THIS, WE HOLD THAT THE PRESENT APPEAL OF THE REVENUE BEFORE THE TRIBUNAL IS NOT MAINTAINABLE AND, HENCE, WE DISMISS THE SAME IN LIMINE . 6 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON THURSDAY , THE 18 TH DAY OF JANUARY, 2018 AT RAIPUR. SD/ - ( PAVAN KUMAR GADALE ) SD/ - (N. S. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER RAIPUR ; DATED 18 / 01/2018 . . / PKM , SENIO R PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), ITA NO. 74 /RPR/201 5 3 / BY ORDER, ( SENIOR PRIVATE SECRETARY ) INCOME TAX APPELLATE TRIBUNAL, RAIPUR 4. / CIT 5. , , RAIP UR / DR, ITAT, RAIPUR 6. / GUARD FILE. //TRUE COPY//