The ACIT, Central Circle-2(1), Ahmedabad V. Priya Blue Industries Pvt..Ltd., Bhavnagar

ITSSA 421/AHD/2012

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9169 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-08-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 28-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 153A; 68

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR IT(SS)A. NOS. 421 & 422/AHD/2012 ( ASSESSMENT YEARS : 2008-09 & 2009-10) ASST. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE- 2(1), AHMEDABAD / VS. PRIYA BLUE INDUSTRIES PVT. LTD. 1563/A, ASHIRWAD, OPP. PANNA TOWER, RUPANI SARDARNAGAR ROAD, BHAVNAGAR - 364001 / / PAN/GIR NO. : AABCP2808B ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MUDIT NAGPAL, SR. D.R. / RESPONDENT BY : SHRI PARIN SHAH, A.R. DATE OF HEARING 20/12/2018 !'# / DATE OF PRONOUNCEMENT 21/12/2018 / O R D E R PER BENCH: THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-III, AHMEDABAD (CIT(A) IN SHORT), DATED 08.06.2012 ARISING IN THE ASSESSMENT ORDER DATED 30.12.2011 PA SSED BY THE ASSESSING OFFICER (AO) UNDER S. 153A R.W.S. 143(3) OF THE INCOME IT(SS)A NOS.421 & 422/AHD/12 [ACIT VS. PRIYA BLUE INDUSTRIES PVT. LTD.] A.YS. 2008-09 & 2009-10 - 2 - TAX ACT, 1961 (THE ACT) IN BOTH ASSESSMENT YEARS 20 08-09 & 2009-10. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE IN IT(SS)A NO. 421/AHD/2012 CONCERNING AY 2008-09 READ AS UNDE R:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE ADDITION MADE U/S. 68 OF THE I.T. ACT OF RS.37,20,000/-. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF INTEREST EXPENSES OF RS.3,86,288/- WITHOUT APPRECIA TING THE FACTS MENTIONED IN THE ASSESSMENT ORDER. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE IN IT(SS)A NO. 422/AHD/2012 CONCERNING AY 2009-10 READ AS UNDE R:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE DISALLOWANCE OF INTEREST EXPENSES OF RS.2,42,000/- WITHOUT APPRECIA TING THE FACTS MENTIONED IN THE ASSESSMENT ORDER. ON THE FACTS AND IN THE C IRCUMSTANCE OF THE CASE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF TH E A.O. ON THE FACT THAT THE ASSESSEE HAS FAILED TO DISCHARGE ITS ONUE AND A LSO FAILED TO SUBSTANTIATED HIS CLAIM. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT BOTH APPEALS FILED BY THE REVENUE ARE HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.3 OF 2018 DATED 11 /07/2018 REVISING THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY RE VENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATIO N WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMI T WHICH IS NOW REVISED AT RS.20 LAKHS. IN THE INSTANT CASE, THE T AX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.20 LAKHS AND THEREFORE BOTH APPEALS OF THE REVENUE ARE REQUIRED TO BE DISMISSED IN LIMINE. IT(SS)A NOS.421 & 422/AHD/12 [ACIT VS. PRIYA BLUE INDUSTRIES PVT. LTD.] A.YS. 2008-09 & 2009-10 - 3 - 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 3 OF 2018. A CCORDINGLY, BOTH APPEALS OF THE REVENUE ARE DISMISSED AS NOT MA INTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RES TORATION OF ITS APPEALS ON SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 21/12/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- & / REVENUE 2 / ASSESSEE ( ) *+ , / CONCERNED CIT 4 ,- / CIT (A) / 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7 289 : / GUARD FILE. BY ORDER / 4 / 5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 21/12/201 8