Dy.Commissioner of Income Tax Circle-1(1)(1), Ahmedabad V. M/s. Adroit Tradelink Pvt.Ltd., Gandhinagar

ITA 906/AHD/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0642 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 08-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAMLESH KAKWANA
• Keywords: Audit objection; Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO. 906/AHD/2016 / ASSESSMENT YEAR: 2008-09 THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1(1)(1), AHMEDABAD VS. M/S. ADROIT TRADELINK PVT LTD, 145-1, SECTOR-14, GANDHINAGAR-382 024 PAN : AAACJ 3868 J / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI KAMLESH KAKWANA, SR DR ASSESSEE BY : SHRI MEHUL TALERA, AR ! / DATE OF HEARING : 04/12/2018 / DATE OF PRONOUNCEMENT: 04/12/2018 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: 1. THE PRESENT APPEAL IS DIRECTED AT THE INSTANCE O F THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (AP PEALS)-1, AHMEDABAD DATED 27.01.2016 PASSED FOR ASSESSMENT YEAR 2008-09 . 2. THE GRIEVANCE RAISED BY THE REVENUE IS AS FOLLOW S :- THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN H OLDING THAT THE EXCEPTION TO EXPLANATION TO SECTION 73 OF THE IT ACT IS APPLICAB LE AND THEREBY ALLOWING THE SHARE TRADING LOSS OF RS.60,25,111/- BEING SPECULAT ION LOSS U/S 73 TO BE SET OFF AGAINST THE INTEREST INCOME OF THE ASSESSEE COMPANY . 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCO UNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT TH E TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE AFO RESAID CBDT CIRCULAR. ITA NO. 906/AHD/2016 DCIT VS. ADROIT TRADELINK PVT LTD FOR AY: 2008-09 2 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO . 3/2018 IN F.NO.279/MISC. 142/2007-ITJ (PT) DATED 11TH JULY, 2 018, VIDE WHICH IT HAS BEEN DECIDED BY THE BOARD THAT NO DEPARTMENTAL APPEALS S HOULD BE FILED BEFORE THE TRIBUNAL IF THE TAX EFFECT BY VIRTUE OF THE COMMISS IONER OF INCOME-TAX (APPEALS)S ORDER IS BELOW RS. 20 LACS. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (10) OF THE INSTRUCTIONS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, WHERE THE CONS TITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT/RULE IS UNDER CHALLENGE OR WHE RE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPT ED BY THE DEPARTMENT OR WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS/BANK ACCOUNTS ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLAUSE AND THE TAX EFFECT IS LESS THAN RS.20 LACS. THEREFORE, THE PR ESENT APPEAL IS NOT MAINTAINABLE AND HENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS THUS DISMISSED IN LIMINE . ORDER PRONOUNCED IN THE COURT ON 4 TH DECEMBER, 2018 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED /12/2018 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