NATIONAL BUILDERS INFRASTRUCTURE PRIVATE LIMITED,VADODARA V. ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2, VADODARA, VADODARA

CO 5/AHD/2024

AI Insights

The case involves an appeal by the Revenue against the appellate order passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad, concerning the assessment order for the Assessment Year 2018-19 under section 143(3) r.w.s. 153C of the Income Tax Act, 1961. The Revenue's appeal was based on the addition of undisclosed income related to bogus expenditure under section 69C of the Act. However, the appeal was dismissed due to the low tax effect, as per the recent CBDT Circular. The Assessee also filed a Cross Objection, which was not pressed following the dismissal of the Revenue's appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23231 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 05-04-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Bogus
• Section: 143(3); 69C; 153C; 150(1); 268A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Assistant Commissioner of Income Tax, Central Circle-2, Vadodara Vs National Builders Infrastructure Pvt. Limited 102B, Sterling Centre Alkapuri S.O., Vadodara, Gujarat-390007 PAN: AACCN2069F National Builders Infrastructure Pvt. Limited 102B, Sterling Centre Alkapuri S.O., Vadodara, Gujarat-390007 PAN: AACCN2069F (Appellant) Vs Assistant Commissioner of Income Tax, Central Circle-2, Vadodara (Respondent) Revenue Represented: Shri V Nandakumar, CIT-DR Assessee Represented: Ms. Amrin Pathan, A.R. Date of hearing : 16-10-2024 Date of pronouncement : 17-10-2024 आदेश/ORDER IT(SS)A No.11/Ahd/2024 & C.O. No. 5/Ahd/2024 Assessment Year 2018-19 I.T(SS).A No. 11/Ahd/24 & C.O. 5/Ahd/24 A.Y. 2018-19 Page No ACIT Vs. National Builders Infrastructure Pvt. Ltd. 2 PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Revenue as against the appellate order dated 22.12.2023 passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad arising out of the assessment order passed under section 143(3) r.w.s. 153C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19. As against the above Revenue appeal, assessee has filed Cross Objection No. 5/Ahd/2024. 2. At the outset, the Department was requested to verify the Tax Effect in the above appeal as per the new Board Circular, since in Form No. 36 the tax effect is mentioned as Rs.59,16,186/-. In reply vide letter dated 15-10-2024, the Jurisdictional Assessing Officer has confirmed that the tax effect in the above appeal is less than Rs.60 lakhs as per CBDT Circular No. 09/2024 dated 17-09-2024 and thereby the Revenue appeal is liable to be dismissed as withdrawn. However, the Assessing Officer also claimed since Department appeal for next Asst. Year 2019-20 where the tax effect is more than Rs.60 lakhs which is pending before the Tribunal. Therefore if the ITAT impressed upon the Department’s appeal for the Asst. Year 2019-20 and sustain the addition in future and then necessary direction as per provisions of Section 150(1) of the Act may be issued on the very same addition of undisclosed income made on account of bogus expenditure u/s. 69C of the Act. 3. Considered the submission of the JAO, following CBDT Circular No. 09/2024, the appeal filed by the Revenue is hereby dismissed I.T(SS).A No. 11/Ahd/24 & C.O. 5/Ahd/24 A.Y. 2018-19 Page No ACIT Vs. National Builders Infrastructure Pvt. Ltd. 3 as withdrawn. Further the JAO request to invoke provisions of Section 150(1) of the Act does not arise. Since the Circulars issued by the CBDT u/s. 268A of the Act is a measure for reducing litigation by the Revenue before various Appellate Forums. Therefore this request cannot be entertained at this stage. 4. In the result, the appeal filed by the Revenue is dismissed. 5. The Ld. Counsel for the assessee does not press the C.O. filed by the assessee, since the Department appeal was dismissed on Low Tax Effect Circular. 6. Recording the same, the Cross Objection filed by the Assessee is hereby dismissed. 7. In the combined result, the appeal filed by the Revenue and Cross Objection filed by the Assessee are dismissed. Order pronounced in the open court on 17-10-2024 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 17/10/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) I.T(SS).A No. 11/Ahd/24 & C.O. 5/Ahd/24 A.Y. 2018-19 Page No ACIT Vs. National Builders Infrastructure Pvt. Ltd. 4 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "