The DCIT, Circle-2(1)(1), Ahmedabad V. M/s. GSP Crop Science Pvt. Ltd., Ahmedabad

MA 26/AHD/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5363 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-08-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 24-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Assessee Lawyers: M K PATEL
• Keywords: Tax effect
• Section: 143(3); 40(a)(ia)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV , JUDICIAL MEMBER AND SHRI WASEEM AHMED , ACCOUNTANT MEMBER M.A NO.26 /AHD/2019 IN ./ ITA NO. 948 / AHD/ 2018 / ASSTT. YEAR: 2013 - 2014 D.C.I.T. , CIRCLE - 2(1)(1), AHMEDABAD. VS M/S. GSP CROP SCIENCE PVT. LTD. 404, LALITA COMPLEX , BETWEEN JAIN TEMPLE & MITHAKALI SIX ROAD , NAVRANGPURA, AHMEDABAD . PAN AAACG7984Q (APPLICANT) (RESPONENT) REVENUE BY : SHRI S.K. DEV , SR.D .R. ASSESSEE BY : SHRI M.K. PATEL , A.R / DATE OF HEARING : 02 / 08 /201 9 / DATE OF PRONOUNCEMENT: 20 / 08 /201 9 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER : BY THIS MISCELLANEOUS APP LICATION, THE REVENUE HAS REQUESTED FOR RECALLING OF THE ORDER DATED 30/07 /2018 PASSED BY THE CO - ORDINATE BENCH, IN ITA NO. 948/AHD /2018 FOR ASST. YEAR 20 13 - 201 4 . 2. IN THE MISCELLANEOUS APPLICATION THE REVENUE HAS SUBMITTED AS FOLLOWS: M.A NO.5 /AHD/2019 IN ITA NO.2301/AHD/2016 A.Y.20 13 - 1 4 . 2 IN THIS CASE, THE APPLICANT MOST RESPECTFULLY SUBMITS THAT THE APPLICANT HEREIN HAD FILED ITA NO. 948/AHD/2018 OF THE INCOME TAX ACT, 1961 BEFORE THE HON'BLE ITAT, AHMEDABAD, AGAINST ORDER DATED 25/01/2018 OF THE CIT(A) - 2, AHMEDABAD IN THE ABOVE MENTIONED CASE. L. IN THIS CASE, THE ASSESSEE HAS FILED ITS RETURN OF INCOME FOR A.Y. 2013 - 14 ON 30/11/2013 DECLARING TOTAL INCOME OF RS. 50,46,43,440/ - . THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT ON 21/03/2016 DETERMINING TOTAL INCOME OF RS, 52,91,22,06 0/ - AFTER MAKING ADDITIONS OF RS. 2,44,78,617/ - (I.E., RS. 54,53,724/ - ON ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S 35(2AB), RS. 58,14,000/ - ON ACCOUNT OF DISALLOWANCE OF PRODUCT DEVELOPMENT EXPENDITURE, RS. 64,21,254/ - ON ACCOUNT OF DISALLOWANCE OF SALES C OMMISSION PAID TO NON RESIDENT AND RS, 5,80,725/ - ON ACCOUNT OF CAPITALIZATION OF INTEREST U/S 36(L)(III) OF THE ACT). 2. BEING AGGRIEVED WITH THE ORDER OF THE A.O., THE ASSESSEE PREFERRED APPEAL BEFORE CIT(A). THE CIT(A) VIDE ITS ORDER NO. CIT(A) - 2/97/ DC. CIR.2(L)(L)/2016 - 17 DATED 25/01/2018 PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. THE LD. CIT(A) DELETED THE ADDITIONS MADE ON ACCOUNT OF DISALLOWANCE OF PRODUCT DEVELOPMENT EXPENSES OF RS. 58,14,000/ - , DISALLOWANCE OF RS. 64.21.254/ - U/S 40(A)(IA) OF TH E ACT BEING SALES COMMISSIONS PAID TO NON - RESIDENTS AND DISALLOWANCE OF RS. 5,80,725/ - IN RESPECT OF CAPITALIZATION OF INTEREST U/S 36(L)(III) OF THE ACT. 3. THEREAFTER, THE DEPARTMENT PREFERRED APPEAL BEFORE THE HON'BLE ITAT. THE HON'BLE ITAT, AHMEDABAD DISMISSED THE APPEAL OF THE REVENUE ON ACCOUNT OF LOW TAX EFFECT, IN VIEW OF CBDT'S INSTRUCTION BEARING NO.03/2018 DATED 11.07.2018. 4. PERUSAL OF THE ITAT ORDER DATED 30.07.2018 REVELS THAT HON'BLE ITAT HAS NOT GONE INTO THE MERITS OF THE MATTER. THE H ON'BLE ITAT HAS NOT ADJUDICATED ANY ISSUE ON MERITS BUT RELYING ON BOARD'S INSTRUCTION NO 03/2018 DATED 11/07/2018, DISPOSED OFF THE APPEAL FILED BY THE REVENUE STATING 'CONSIDERING THE SAID CIRCULAR APPEAL IS NOT MAINTAINABLE IN VIEW OF THE TAX EFFECT INV OLVED IN THE CASE IS BELOW THE PRESCRIBED MONETARY LIMIT.' HOWEVER, ON VERIFICATION OF THE CASE RECORDS, IT IS SEEN THAT TAX EFFECT INVOLVED IS RS. 41,58,142/ - AND THEREFORE THE APPEAL IS REQUIRED TO BE RESTORED BY WAY OF FILING MISCELLANEOUS APPLICATION. IT IS THEREFORE RESPECTFULLY SUBMITTED AND PRAYED THAT IN THE FACTS AND CIRCUMSTANCES STATED HEREINABOVE, THIS HON'BLE TRIBUNAL PLEASED TO; (A) TO RECALL THE ORDER DATED 30.07.2018 PASSED BY THIS HON'BLE ITAT 'B' BENCH, AHMEDABAD IN ITA NO. 948/AHD/2018 AND HEAR THE APPLICANT HEREIN ON MERITS. (B) TO PASS ANY OTHER OR FURTHER ORDERS, AS THIS HON'BLE TRIBUNAL MAY DEEM FIT AND PROPER IN THE FAC TS AND CIRCUMSTANCES OF THE CASE. M.A NO.5 /AHD/2019 IN ITA NO.2301/AHD/2016 A.Y.20 13 - 1 4 . 3 3. AT THE OUTSET, THE LD. D R, FOR THE REVENUE BEFORE US SUBMITTED THAT THE IMPUGNED APPEAL HAS BEEN DISMISSED BY THE HON BLE ITAT BY HOLDING THAT TAX EFFECT IS LESS THAN RS.20 LACS ONLY . H OWEVER, IT WAS SUBSEQUENTLY FOUND THAT TAX EFFECT IN THE INSTANT CASE EXCEEDS RS.20 LACS. THEREFORE, IT IS PRAYED TO RECALL THE MATTER AND FIX THE CASE FOR HEARING AS PER THE PROVISION OF LAW. 4. ON THE OTHER HAND LD. AR, FAIRLY CONCEDED THAT THE TAX EFFECT EXCEEDS RS. 20 LACS. 5 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORDS. ADMITTEDLY, THE TAX EFFECT IN THE INSTANT CASE EXCEEDS RS.20 LACS, THEREFORE, WE HOLD THAT THE CIRCULAR ISSUED BY THE CBDT BEARING NO.3/2018 DATED 11/07/2018, DOES NOT APPL Y TO THE PRESENT CASE. ACCORDINGLY, WE NOTE THAT THERE IS A MISTAKE IN THE ORDER OF THE ITAT WHICH IS APPARENT FROM THE RECORD . A CCORDINGLY WE CALL THE ORDER OF THE ITAT D ATED 30/07/2018 AND DIRECT THE REGISTRY TO FIX THE CASE FOR FRESH HEARING ON 14 /10 /20 19 . AS THE DATE OF HEARING WAS PRONOUNCED IN THE OPEN COURT, THE REQUIREMENT FOR ISSUING THE SEPARATE NOTICE IS DISPENSED WITH. 6 . IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 20 / 08 / 201 9 AT AHMEDABAD. - SD - ( RAJPAL YADAV ) JUDICIAL MEMBER - SD - ( WASEEM AHMED ) ACCOUNTANT MEMBER (TRUE COPY) AHMEDABAD; DATED 20 / 08 / 201 9 MANISH