ACIT, Mohali V. Gilard Electronics Pvt. Ltd., Mohali

ITA 857/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90187 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 10-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Question of law; Tax effect
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 857/CHD/2014 ASSESSMENT YEAR: 2008-09 THE ACIT, VS GILARD ELECTRONICS PVT. LTD., CIRCLE 6(1), C-132, INDUSTRIAL AREA, MOHALI. PHASE 8, MOHALI. PAN: AAACG7797F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.K.GUPTA RESPONDENT BY : SHRI SUNIL KUMAR DATE OF HEARING : 04.06.2015 DATE OF PRONOUNCEMENT : 04.06.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS) CHANDIGARH DATED 14.08.2014 FOR ASSESS MENT YEAR 2008-09. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT IN THIS C ASE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF TH E ACT. THE ASSESSING OFFICER LATER ON PASSED THE ORDER UNDER S ECTION 154 OF THE ACT MAKING THE ADDITION OF RS. 1,72,240/- ON AC COUNT OF ISO 9000 ON EXPENSES CONSIDERING IT TO BE CAPITAL IN NATURE. THE LD. CIT(APPEALS) NOTED THAT IT IS A DEBATABLE I SSUE AND WOULD NOT FALL WITHIN THE AMBIT OF SECTION 154 OF THE INC OME TAX ACT AND ACCORDINGLY, DELETED THE ADDITION. THE APPEAL OF THE ASSESSEE WAS THUS, ALLOWED. 2 3. CONSIDERING THE ABOVE FACTS, WE FIND THAT THE DE PARTMENTAL APPEAL IS FILED ON 10.10.2014 IN THE OFFICE OF THE TRIBUNAL AND THE TAX EFFECT DOES NOT EXCEED RS. 4,00,000/-. ACC ORDING TO RECENT INSTRUCTION NO. 5/2014 DATED 10.07.2014, THE CBDT HAS DIRECTED THAT DEPARTMENTAL APPEAL BE NOT FILED BEFO RE THE TRIBUNAL WHEN THE TAX EFFECT DOES NOT EXCEED MANDAT ORY LIMIT OF RS. 4,00,000/-. CONSIDERING THE ISSUE IN THE LIGHT OF THE BOARDS CIRCULAR, THE APPEAL OF THE REVENUE IS NOT MAINTAIN ABLE AND IS LIABLE TO BE DISMISSED BEING FILED AGAINST THE CBDT INSTRUCTION. NO QUESTION OF LAW ARISES OUT OF THE DEPARTMENTAL A PPEAL. THE DEPARTMENTAL APPEAL THEREFORE, STANDS DISMISSED. 4. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH JUNE,2015. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 4 TH JUNE,2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH