The DCIT(OSD)Circle-8, Ahmedabad V. M/s. Torrent Power Ltd., Ahmedabad

ITA 979/AHD/2014

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6338 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 15-10-2019
• Assessment Year: 2004-2005
• Appeal Filed On: 07-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH B BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.979/AHD/2014 WITH CO NO.206/AHD/2014 / ASSTT.YEAR : 2004-2005 DCIT (OSD) CIR.8, AHMEDABAD. VS. M/S.TORRENT POWER LTD. TORRENT HOUSE OFF. ASHRAM ROAD AHMEDABAD 380 009. PAN : AACCT 0294 J ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI MUDIT NAGPAL, SR.DR ASSESSEE BY : SMT.URVASHI SODHAN, AR / DATE OF HEARING : 15/10/2019 / DATE OF PRONOUNCEMENT: 15/10/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)- XIV, AHMEDABAD DATED 24.1.2014 PASSED FOR THE ASSES SMENT YEAR 2004-05. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE I D.CIT(A) IN DELETING ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF DEPRECI ATION ON PREMIUM PAID IN RESPECT OF LEASEHOLD LAND. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON THE GROUND THAT THE TAX EFFECT INVOLVED IN THE APPEAL IS BELOW RS.50 LAKHS, AND THEREFORE, BY VIRTUE OF LATEST CBDT INSTRUCTION NO.17 OF 2019 DATED 8.8. 2019, VIDE WHICH DEPARTMENT HAS BEEN INSTRUCTED NOT TO FILE APPEAL B EFORE THE TRIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. WHEN WE CONFRONT ED THE SAME TO THE ITA NO.979/AHD/2014 2 LD.DR, HE DID NOT DISPUTE SAME AND LEFT TO THE TRI BUNAL TO PASS APPROPRIATE ORDER IN THE MATTER. 4. IN VIEW OF THE ABOVE, WE ARE OF THE VIEW THAT T HE PRESENT APPEAL OF THE REVENUE FALLS WITHIN THE PURVIEW OF THE CBDT IN STRUCTION CITED (SUPRA) AND THEREFORE, KEEPING IN VIEW THE ABOVE CBDT CIRCU LAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE V IEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX; EFFECT IS MORE, OR REVENUE'S CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBU NAL FOR RECALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF THE RE VENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. AS FAR AS THE CO OF THE ASSESSEE IS CONCERNED, T HE ASSESSEE HAS PLEADED THAT THE LD.CIT(A) HAS ERRED IN REJECTING I TS ALTERNATIVE CONTENTION. SINCE, WE HAVE DISMISSED APPEAL OF THE REVENUE, THE REFORE, THERE IS NO NECESSITY TO GO INTO THE ALTERNATIVE CONTENTION OF THE ASSESSEE, WHICH HAS BEEN DECIDED AGAINST IT. HOWEVER, WE OBSERVE THAT WITH THE DISMISSAL OF THE CO IN THE PRESENT YEAR WILL NOT CAUSE AND PREJU DICE FOR THE ASSESSEE FOR TAKING THIS VERY ALTERNATIVE ARGUMENTS IN SOME OTHE R ASSESSMENT YEAR, IF NEEDS TO BE ASSIGNED. WITH THE ABOVE OBSERVATION, CO OF THE ASSESSEE STANDS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. CO OF THE ASSESSEE, BOTH ARE DISMISSED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 15 TH OCTOBER, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 15/10/2019