The ACIT, Vapi Circle, Vapi V. M/s. Team Ferro Alloys Pvt.Ltd., Dadra & Nagar Haveli

ITA 878/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9590 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 28-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGID
• Assessee Lawyers: M K PATEL
• Keywords: Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD - , , BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ I.T.A. NO.878/AHD/2013 ( / ASSESSMENT YEAR : 2009-10) THE ASST.CIT VAPI CIRCLE, VAPI / VS. M/S.TEAM FERRO ALLOYS P.LTD. SURVEY NO.357/2/21 & 357/2/3/2 VILLAGE DADRA UT OF DADRA & NAGAR HAVELI $ ./ ./ PAN/GIR NO. : AAACT 8925 A ( $' / APPELLANT ) .. ( ()$' / RESPONDENT ) $' * / APPELLANT BY : SHRI J.P. JANGID, SR.DR ()$' + * / RESPONDENT BY : SHRI M.K. PATEL, AR ,- + . / DATE OF HEARING 09/02/2016 /0 + . / DATE OF PRONOUNCEMENT 10/02/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-VALSAD [CIT(A) IN SHORT] DATED 28/12/2012 PERTAINING TO ASSESSMENT YEAR (AY) 2009-10. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- ITA NO.878 /AHD /13 ACIT VS. TEAM FERRO ALLOYS & PVT.LTD. ASST.YEAR 2009-10 - 2 - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE A SSESSEE AGAINST THE DISALLOWANCE OF THE DEDUCTION U/S.80IB OF THE A CT AMOUNTING TO RS.10,48,356/-, MADE BY THE AO. 2. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD.C IT(A) BE SET ASIDE AND THAT THE ORDER OF THE AO BE RESTORED. 3. THE APPELLANT CRAVES TO ADD, MODIFY OR ALTER ANY GR OUNDS DURING THE COURSE OF APPEAL PROCEEDINGS. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASS ESSEE CONTENDED THAT AS PER CENTRAL BOARD OF DIRECT TAXES CIRCULAR NO. 21/2 015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBE R 2015, THE REVISED LIMIT FOR PREFERRING REVENUE'S APPEALS IS R S.10 LACS. HE SUBMITTED THAT THE TAX EFFECT IN THE PRESENT REVENU E'S APPEAL IS BELOW THE PRESCRIBED LIMIT OF RS. 10 LACS. HE, THEREFORE, P LEADED THAT IN VIEW OF THE CBDT CIRCULAR, THE REVENUE'S APPEAL MAY BE DISMISSE D AS THE TAX EFFECT BEING BELOW THE PRESCRIBED LIMIT. 3. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR THE AS SESSEE. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BE EN PROVIDED THAT IF ITA NO.878 /AHD /13 ACIT VS. TEAM FERRO ALLOYS & PVT.LTD. ASST.YEAR 2009-10 - 3 - THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INC OME-TAX (APPEALS)S ORDER IS BELOW RS. 10 LAKHS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURTHER APPEAL. THE BOARD H AS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIONS, WHERE IN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON SOME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCL OSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOE S NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX IS LESS THAN RS. 10 LA KHS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMIS SED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE COURT ON WEDNESDAY, THE 10 TH DAY OF FEBRUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( MANISH BORAD ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 10/ 02 /2016 4..., ,.../ T.C. NAIR, SR. PS ITA NO.878 /AHD /13 ACIT VS. TEAM FERRO ALLOYS & PVT.LTD. ASST.YEAR 2009-10 - 4 - !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ()$' / THE RESPONDENT. 3. 56 7 / CONCERNED CIT 4. 7 ( ) / THE CIT(A)-VALSAD 5. 8,9 (56 , . 560 , / DR, ITAT, AHMEDABAD 6. 9;< =- / GUARD FILE. / BY ORDER, )8 ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION ..9..2.16 (TAX EFFECT BELOW 10 LACS) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..9.2.16 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.10.2.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10.2.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER