DCIT, Jaipur V. KAMDHENU ISPOAT LTD., Alwar

ITA 77/JPR/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4579 (ITAT-JAIPUR)
• Duration Of Justice: 4 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 31-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKWY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 77/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2001-02 DCIT, CENTRAL CIRCLE-2, JAIPUR CUKE VS. M/S KAMDHENU ISPAT LTD., A-114, RICO PHASE-111, BHIWADI LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAACK7155M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPO NDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI RAJENDRA JHA FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI ROHAN SOGANI (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 06/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 07/08/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT (A)- ALWAR DATED 12.11.2013 FOR ASSESSMENT YEAR 200 1-02 WHEREIN THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL: - 1. ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A), ALWAR HAS ERRED IN DELETING THE ADDITION OF RS. 25,66,054/- MADE ON ACCOUNT OF EXCESS GENERATION OF FINISHED GOODS ON JOB WORK SOLD OUTSIDE THE BOOKS OF ACCOUNT S. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A), ALWAR HAS ERRED IN DELETING ADDITION OF RS. 98,750/- OUT OF ITA NO. 77/JP/2014 DCIT, JAIPUR VS. M/S KAMDHENU ISPAT LTD., BHIWADI 2 TOTAL ADDITION OF RS. 1,33,200/- ON ACCOUNT OF INTE REST ON INTEREST FREE ADVANCES TO PERSONS SPECIFIED U/S 40A(2). 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS RAISED AN OBJECTION OF MAINTAINABILITY OF THE APPEAL OF THE R EVENUE DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CIRCULAR NO. 3 OF 2018 DATED 11 TH JULY, 2018. 2.1. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL COMES TO RS 10,94,040/- LESS THAN RS 20 LACS WHICH IS PRESCRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIR CULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CI RCULAR NO. 21 OF 2015 DATED 10.12.2015. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAN D/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LAC S . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PEN DING APPEALS. 4. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS ITA NO. 77/JP/2014 DCIT, JAIPUR VS. M/S KAMDHENU ISPAT LTD., BHIWADI 3 NOT EXCEEDING THAN 20 LACS SHOULD BE EITHER WITHDRA WN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 5. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUT E IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE A PPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCUL AR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE REVENUE I S DISMISSED AS NOT PRESSED/WITHDRAWN. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/08/2018. SD/- SD/- FOT; IKWY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 07/08/2018 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- DCIT, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S KAMDHENU ISPAT LTD., BHIWADI 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 77/JP/2014} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR