The ACIT, Central Circle-2(4), Ahmedabad V. M/s. Creelotex Engineers Pvt. Ltd., Ahmedabad

ITSSA 260/AHD/2015

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9877 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 18 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 11-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 23-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A KHAN
• Keywords: 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 IT(SS)A.NO.260/AHD/2015 / ASSTT. YEAR: 2009-2010 ACIT, CENT.CIR.2(4) AHMEDABAD. VS. CREELOTEX ENGINEERING P.LTD. C/O. MEHTA LODHA & CO. CHARTERED ACCOUNTANTS 105, SAKAR-I, ASHRAM ROAD AHMEDABAD 380 009. PAN : AACCCC 2970 L ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : SHRI PRAKASH D.SHAH REVENUE BY : SHRI M.S.A. KHAN, CIT-DR / DATE OF HEARING : 15/10/2018 / DATE OF PRONOUNCEMENT: 11/12/2018 +,/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-12, AHMEDABAD DATED 31.8.2015 PASSED THE ASSTT.YEAR 200 9-10. 2. THIS APPEAL WAS HEARD ALONG WITH APPEAL OF THE A SSESSEE FOR THE ASSTT.YEAR 2008-09. THE LD.CIT(A) HAS DECIDED TWO APPEALS OF THE ASSESSE FOR THE ASSTT.YEAR 2008-09 AND 2009-10 BY WAY OF A SEPA RATE ORDER ON 31.8.2015. 3. WE HAVE HEARD THIS APPEAL OF THE REVENUE ALONG W ITH APPEAL OF THE ASSESSEE ON 15.10.2018. APPEAL OF THE ASSESSEE HAS ALREADY ADJUDICATED BY US VIDE ORDER DATED 10.12.2018. SOMEHOW, ON ACCOUNT O F SOME INADVERTENT MISTAKE, THIS APPEAL HAS BEEN SEGREGATED AND COULD NOT BE DICTATED ALONG WITH IT(SS)A NO.260/AHD/2015 2 APPEAL OF THE ASSESSEE. THE ADDITION IMPUGNED BY T HE REVENUE IN ITS APPEAL RELATES TO DELETION OF ADDITION OF RS.50,18,006/-. THE ASSESSEE HAS SUBMITTED THAT THE APPEAL OF THE REVENUE DESERVES TO BE DISMI SSED ON ACCOUNT OF LOW TAX EFFECT INVOLVED IN IT. IT HAS BEEN PLEADED THAT TH E CBDT HAS ISSUED A CIRCULAR BEARING NO.3 OF 2018 DATED 11.08.2018, VIDE WHICH I T HAS PROHIBITED ITS AUTHORITIES NOT TO FILE APPEAL BEFORE THE TRIBUNAL, IF TAX EFFECT BY VIRTUE OF RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.20 LAKHS . ON DELETION OF ADDITION OF RS.50,18,006/- TAX EFFECT WILL BE LESS THAN RS.20 L AKHS, AND THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE IN VIEW OF THE A BOVE CBDT CIRCULAR. FURTHER, LD.DR HAS NOT POINTED OUT WHETHER THE CASE OF THE REVENUE FALL WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR OR NOT. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECT ION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. HOWEVER, IT IS OBSERVED THAT IN CASE ON RE-VERIFICA TION AT THE END OF THE AO IT COMES TO THE NOTICE THAT THE TAX EFFECT IS MO RE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRC ULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR REC ALL OF THIS ORDER. SUCH APPLICATION SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 11 TH DECEMBER, 2018 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 11/12/2018