Assistant Commissioner of Income-tax, V. Shri Sant Damaji S.S.K. Ltd., Solapur

ITA 825/PUN/2014

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1543 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 23-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRAMOD SHINGRE
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.825/PUN/2014 / ASSESSMENT YEAR : 2010-11 THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1, SOLAPUR. . / APPELLANT V/S SHRI SANT DAMAJI SAHAKARI SAKHAR KARKHANA LIMITED, A/P., MANGALWEDHA, DISTRICT SOLAPUR. PAN : AAATS5265K. . / RESPONDENT ASSESSEE BY : SHRI PRAMOD SHINGRE. REVENUE BY : SHRI S.B. PRASAD, C.I.T. PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF TH E ORDER OF COMMISSIONER OF INCOME TAX (A) III, PUNE DATE D 26.02.2014 FOR THE ASSESSMENT YEAR 2010-11. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS A CO-OPERATIVE SOCIETY STATED TO BE ENGAGE D IN THE BUSINESS OF MANUFACTURING AND SALE OF SUGAR AND ITS BY-PRO DUCTS. ASSESSEE ELECTRONICALLY FILED ITS RETURN OF INCOME FOR A.Y. 2 010-11 ON 23.09.2010 DECLARING TOTAL INCOME OF RS. NIL. THE CASE W AS / DATE OF HEARING : 19.03.2019 / DATE OF PRONOUNCEMENT: 19.03.2019 2 SELECTED FOR SCRUTINY AND THEREAFTER ASSESSMENT WAS FRAM ED U/S 143(3) OF THE ACT VIDE ORDER DATED 24.12.2012 AND THE T OTAL INCOME WAS DETERMINED AT RS.49,64,91,360/-. AGGRIEVED BY THE ORD ER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A) WHO VIDE ORDER DT.26.02.2014 (IN APPEAL NO.PN/CIT(A)-III/ACIT, CIR-1/SOL/25 3/ 2012-13) GRANTED PARTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), REVENUE IS NOW IN APPEAL BEFORE US AND H AS R AISED THE FOLLOWING GROUNDS : 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN DELETING THE A DDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SALE OF SUGAR A T CONCESSIONAL RATE AT RS.33,75,000/- TO ITS MEMBERS AND NON-MEMBERS. 2. THE ORDER OF THE CIT(A) BE VACATED AND THAT OF T HE AO BE RESTORED. 3. BEFORE US, AT THE OUTSET, LD.A.R. SUBMITTED THAT THE APP EAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFEC T AND THEREFORE, THE APPEAL OF THE REVENUE BE DISMISSED. LD.D.R. D ID NOT OBJECT TO THE AFORESAID CONTENTION MADE BY THE LD.A.R. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. A S PER THE RECENT ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CB DT) DATED 11.07.2018 (CIRCULAR NO. 3 OF 2018), NO DEPARTMENT A PPEALS ARE TO BE FILED AGAINST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTER EST, EXCEEDS RS.20 LAKHS AND IT FURTHER STATES THAT THE INST RUCTIONS WILL APPLY RETROSPECTIVELY TO THE PENDING APPEALS ALSO. IN T HE PRESENT 3 CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE ADDITION W HICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN RS.20 LAKHS AND IN THE ABSENCE OF ANY MATERIAL PLACED ON RECORD BY THE REVENUE TO DEMONS TRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXCEPTIONS PROVIDED IN PARA 10 OF THE AFORESAID CBDT CIRCULAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORES AID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT. WE THEREFORE HOLD THE PRESENT APPEAL OF RE VENUE TO BE NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT AND ACCORDING LY DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINIO N ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN T O THE REVENUE TO SEEK REVIVAL OF THE APPEAL. THUS, THE GROUNDS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 19 TH DAY OF MARCH, 2019. SD/- SD/- ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ! / ACCOUNTANT MEMBER PUNE; DATED : 19 TH MARCH, 2019. YAMINI 4 '#$%&'('% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4 5. 6. THE CIT(A)-III, PUNE. THE CIT-IV, PUNE. !,# ! , / DR, ITAT, A PUNE; &'(/ GUARD FILE. / BY ORDER // TRUE COPY // ) *+, - / SR. PRIVATE SECRETARY # ! , / ITAT, PUNE.