ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, KOTA V. M/S AHLUWALIA ERECTORS & FABRICATORS PVT. LTD., KOTA

ITA 952/JPR/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4694 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 09-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KARNI DAN
• Assessee Lawyers: HEMANG GARGIEYA ADV DHK
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S A, JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; ,OA JH FOT; IKY JKO] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO , JM VK;DJ VIHY LA- @ ITA NO. 952/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2014-15 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, KOTA. CUKE VS. M/S AHLUWALIA ERECTORS & FABRICATORS PVT. LTD., E-77, ROAD NO. 4, I.P.I.A., KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAHCA 0089 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI KARNI DAN (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI HEMANG GARGIEYA (ADV) LQUOKBZ DH RKJH[K @ DATE OF HEARING: 06/02/2019 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 08/02/2019 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS AN APPEAL FILED BY REVENUE AGAINST THE ORD ER OF LD.CIT(A), KOTA DATED 02/05/2018 FOR THE A.Y. 2014-15 IN THE M ATTER OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT TH E ACT). FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE REVENUE: 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN:- (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E CIT(A) HAS ERRED IN RESTRICTING THE ADDITION OF RS. 19,19,088/- OUT OF TOTAL ADDITION OF RS. 23,69,086/- MADE BY THE A.O. AFTER REJECTION OF BOO KS OF ACCOUNT U/S 145(3). (II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, CI T(A) HAS ERRED IN DELETING THE ADDITION OF RS. 13,73,734/- MADE BY THE A.O. ON ACCOUNT OF DIFFERENCE IN ITS DATA 26AS. 2 ITA NO. 952/JP/2018 ACIT VS. AHLUWALIA ELECTORS & FABRICATORS P LTD. (III) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITIO NAL GROUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TIME OF HE ARING. 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS RAISED AN OBJECTION OF MAINTAINABILITY OF THE APPEAL OF THE R EVENUE DUE TO THE TAX EFFECT NOT EXCEEDING RS. 20 LACS AS PER THE CBDT CI RCLE NO. 3 OF 2018 DATED 11 TH JULY, 2018. THE LD. A/R SUBMITTED THAT IN THE FAC TS OF THE PRESENT CASE, TAX EFFECT IN REVENUES APPEAL IS STA TED TO BE BELOW THE PRESCRIBED LIMIT OF RS. 20 LACS. 3. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EF FECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRES CRIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. 4. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAR EFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS OBSERVE D THAT THE DEMAND/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LACS . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T AC T, CBDT HAS RECENTLY ISSUED CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT)INSTRUCTING THE AUTHORITI ES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PEN DING APPEALS. 3 ITA NO. 952/JP/2018 ACIT VS. AHLUWALIA ELECTORS & FABRICATORS P LTD. 5. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING THAN 20 LACS SHOULD BE EITH ER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 6. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPT IONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DIS PUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY C BDT FOR THE APPEAL, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW O F CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF TH E DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHDRAWN. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH FEBRUARY, 2019. SD/- SD/- FOT; IKY JKO JES'K LH 'KEKZ (VIJAY PAL RAO) (RAMESH C SHARMA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 08 TH FEBRUARY, 2019 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO : 1. VIHYKFKHZ@ THE APPELLANT - THE ACIT, CIRCLE-1, KOTA. 2. IZR;FKHZ@ THE RESPONDENT - M/S AHLUWALIA ERECTORS & FABRICATORS PVT. LTD., KOTA. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K]T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 952/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR