The ITO, (Exemptions), Ward-2, Ahmedabad V. Shree Deshi Lohana Vidhyarthi Bhavan, Ahmedabad

ITA 748/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0938 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 27-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Assessee Lawyers: IRA KAPO OR
• Keywords: Audit objection; Tax effect

Judgement Text

ITA NO. 748/AHD/2017 ITO VS. SHREE DESHI LOHANA VIDYARTHI BHAVAN ASSESSMENT YEAR : 2013-14 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR, VP AND MS. MADHUMITA ROY, JM] ITA NO. 748/AHD/2017 ASSESSMENT YEAR: 2013-14 INCOME TAX OFFICER (EXEMPTIONS) ............. .....APPELLANT WARD -2 , AHMEDABAD VS. SHREE DESHI LOHANA VIDHYARTHI BHAVAN ............................RESPONDENT KANKARIA RAILWAY YARD, VIJAY TOWER COMPLEX, OPP. ABAD DAIRY, KANKARIA, AHMEDABAD-380015 [PAN : AAAAS 5836 R] APPEARANCES BY: SK DEV, FOR THE APPELLANT IRA KAPOOR, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 09.01.2019 DATE OF PRONOUNCING THE ORDER : 25.03.2019 O R D E R PER PRAMOD KUMAR, VICE PRESIDENT : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 5 TH JANUARY 2017, PASSED BY THE LEARNED CIT(A)-9, AHME DABAD FOR THE ASSESSMENT YEAR 2013-14, ON THE FOLLOWING GROUN DS: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES, IS THE LD. CIT(A) JUSTIFIED IN GIVING THE BENEFIT OF SECTION 11(1)(D) BY DELETING THE ADDITION OF RS.37,54,700/- WHICH THE AO DISALLOWED BY INVOKING THE PROVISION O F SECTION 2(15) OF THE ACT. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, IS THE LD. CIT(A) JUSTIFIED IN DELETING THE ADDITION OF RS.49, 79,505/- MADE ON ACCOUNT OF OUTSTANDING LIABILITY. 2. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018. L EARNED COUNSEL FOR THE ASSESSEE ALSO SUBMITS THAT IN THE PRESENT CASE THE TAX EFFEC T IS RS.14,42,269/-, AS PER THE WORKING PLACED ON RECORD, WHICH IS BELOW THE PRESCRIBED LIM IT OF RS.20 LACS. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMI TTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIR CULAR. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 3/2018 IN F.NO .279/MISC. 142/2007-ITJ (PT) ITA NO. 748/AHD/2017 ITO VS. SHREE DESHI LOHANA VIDYARTHI BHAVAN ASSESSMENT YEAR : 2013-14 PAGE 2 OF 2 DATED 11 TH JULY, 2018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPEALS SHOULD BE FILED BEFORE THE TRI BUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTR UCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLIC ABLE, WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPA RTMENT OR WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTA INABLE AND HENCE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 25 TH MARCH, 2019 SD/- SD/- MS. MADHUMITA ROY PRA MOD KUMAR (JUDICIAL MEMBER) (VICE PRESIDENT) AHMEDABAD, THE 25 TH DAY OF MARCH, 2019 *BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: 25.03.2019.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ..... 25.03.2019.... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: . 25.03.2019 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT:... 25.03.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : ..... 25.03.2019................. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 8. DATE OF DESPATCH OF THE ORDER: ......