The DCIT, Circle-2(1)(1), Ahmedabad V. M/s. Hitachi Home & Life Solutions (India) Ltd., Ahmedabad

ITA 894/AHD/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6184 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 09-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P M MEHTA; GULAB THAKORE ARS
• Keywords: Tax effect
• Section: 154

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 894/AHD/2018 / ASSESSMENT YEAR : 2006-07 THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 2(1)(1), AHMEDABAD VS M/S. HITACHI HOME & LIFE SOLUTIONS (INDIA) LIMITED, 9 TH FLOOR, ABHIJEET BUILDING, MITHAKHALI SIX ROADS, MITHAKHALI, NAVRANGPURA, AHMEDABAD-380006 PAN : AABCA 2392 K / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI RAJDEEP SINGH, SR DR REVENUE BY : S/SHRI PM MEHTA & GULAB THAKORE, ARS DATE OF HEARING : 10/10/2019 DATE OF PRONOUNCEMENT IN COURT : 10/10/2 019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINS T THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) -10, AHMEDABAD DATED 30.01.2018 PASSED FOR ASSESSMENT YEAR 2006-07 . 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE A S FOLLOWS: 1. THE LD.CIT(A) ERRED IN LAW BY HOLDING THAT THE SAID MISTAKE IS NOT A MISTAKE APPARENT FROM RECORD COMING UNDER THE PURVIEW OF SECTION 154 OF IT ACT. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE LOWER OF AGGREGATE OF BUSINESS LOSS OR UNABSORBED D EPRECIATION OVER THE YEARS IS TO BE CONSIDERED FOR REDUCTION OUT OF BOOK PROFIT AND NOT YEAR WISE. ITA NO. 894 /AHD/2018 DCIT VS HITACHI HOME & LIFE SOLUTIONS (I) LTD AY : 2006-07 2 3. THE LD. CIT(A) HAS ERRED IN LAW IN NOT CONSIDER ING THE BOARD CIRCULAR NO. 495 DATED 22.09.1987. 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, LEA RNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF T HE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIE W OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 WHERE BY THE MONETARY LIMITS FOR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WAS ENHANCED FROM RS.20 LAKHS TO RS.50 LAKHS. THIS INS TRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. LEARNED COUN SEL FOR THE ASSESSEE ALSO SUBMITS THAT IN THE PRESENT CASE THE TAX EFFECT IS RS.43,83,037/-, AS PER THE WORKING PLACED ON RECORD , WHICH IS BELOW THE PRESCRIBED LIMIT OF RS.50 LAKHS. THEREFORE, TH E PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AS NON-MAINTA INABLE AS HELD BY THIS TRIBUNAL IN THE CASE OF ITO VS. DINESH MADHAVL AL PATEL IN ITA NO.1398/AHD/2004 FOR AY 1998-99 VIDE A CONSOLIDATED ORDER DATED 14.08.2019. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. AS LEARNED COUNSEL RIGHTLY CONTEND S, THIS APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE IN VIEW OF THE RE CENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019. THE MANDA TORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRA NTED BY THE CIT(A) NOW STANDS ENHANCED TO RS.50 LAKHS. THIS CONCESSIO N GRANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTI VE IN EFFECT INASMUCH AS IT APPLIES TO ALL PENDING APPEALS AS WE LL. IN VIEW OF THE ABOVE POSITION, THE APPEAL OF THE REVENUE IS NO LON GER MAINTAINABLE AND MUST BE DISMISSED AS SUCH. 6. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFF ECT OF MORE THAN ITA NO. 894 /AHD/2018 DCIT VS HITACHI HOME & LIFE SOLUTIONS (I) LTD AY : 2006-07 3 RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WITHIN THE EXEMPTION CLAUSE OF THE CIRCULAR, THEN THE REVE NUE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLICATION SHOULD BE FILED WITHIN TIME LIMIT P RESCRIBED IN THE ACT. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 10 TH OCTOBER, 2019 AT AHMEDABAD. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 10/10/2019 *BIJU T., SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT. REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION- COVERED BY CBDT CIRCULAR .10.1 0.2019 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .10.10.2019 OTHER MEMBER 10.10.2019 . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. - 10.10.2019 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 10.10.2019 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10. 10.2019 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER 8. DATE OF DESPATCH OF THE ORDER