Deputy Commissioner of Income-tax, V. S.K. Translines Pvt. Ltd., Jalgaon

ITA 836/PUN/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9355 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 03-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JHA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 836 /P U N/201 5 / ASSESSMENT YEAR : 20 10 - 11 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1, OLD BHIKAMCHAND JAIN MARKET, JALGAON 425001 ....... / APPELLANT / V/S. S.K. TRANSLINES PVT. LTD., 1 ST FLOOR, 17 19, SURESHDADA JAIN COMPLEX, JALGAON 425001 PAN : AAICS5895G / RESPONDENT ASSESSEE BY : SHRI SUNIL GANOO REVENUE BY : SHRI MUKESH JHA / DATE OF HEARING : 27 - 06 - 2017 / DATE OF PRONOUNCEMENT : 27 - 06 - 2017 / ORDER PER VIKAS AWASTHY, JM : TH E APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2, NASHIK DATED 11 - 03 - 2015 FOR THE ASSESSMENT YEAR 2010 - 11. 2 ITA NO . 836/PUN/2015, A.Y. 2010 - 11 2. SHRI SUNIL GANOO APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF CBDT CIRCULAR NO. 21/2015, DATED 10 - 12 - 2015 . THE LD. AR OF THE ASSESSEE FURNISHED WORKING OF TAX EFFECT WHICH IS AS UNDER : (I) ADDITION MADE BY ASSESSING OFFICER ON ACCOUNT OF FREIGHT PAYABLE RS.33,95,411/ - (II) LESS ADDITION CONFIRMED BY CIT RS.6,79,082/ - (III) ADDITION DELETED RS.27,16,329/ - (IV) TAX RATE RS.33.90% (V) TAX EFFECT RS.9,20,836/ - 3. SHRI MUKESH JHA REPRESENTING THE DEPARTMENT STRONGLY SUPPORTED THE FINDINGS OF ASSESSING OFFICER BUT FAILED TO CONTROVERT THE WORKING OF TAX EFFECT FURNISHED BY LD. AR OF THE ASSESSEE. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE ADDITION OF RS.33,95,411/ - ON ACCOUNT OF FREIGHT CHARGES PAYABLE. THE ASSESSING OFFICER HAD DISALLOWED FREIGHT PAYABLE RS.33,95,411/ - AS THE A SSESSEE FAILED TO FURNISH THE DETAILS. BEFORE COMMISSIONER OF INCOME TAX (APPEALS) THE ASSESSEE FURNISHED SOME INFORMATION. THE COMMISSIONER OF INCOME TAX (APPEALS) ESTIMATED 20% OF THE FREIGHT PAYABLE I.E. RS.67,90,82/ - AS NOT GENUINE AND DELETED THE RE MAINING ADDITION. FOR THE RELIEF GRANTED THE REVENUE IS IN APPEAL. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS RS.9,20,836/ - , WHICH IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT FOR FILING OF APPEAL BEFORE TRIBUNAL. THE CBDT VIDE CIRCULAR NO . 21/2015, DATED 10 - 12 - 2015 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF 3 ITA NO . 836/PUN/2015, A.Y. 2010 - 11 APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS. 10 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE , AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. THUS, IN VIEW OF THE CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNC ED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 27 TH DAY OF JUNE, 2017 . SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 27 TH JUNE, 2017 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 2, NASHIK 4. THE PR. COMMISSIONER OF INCOME TAX 2, NASHIK 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / ASSISTANT REGISTRAR, , / ITAT, PUNE