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Income Tax Appellate Tribunal, “ A ” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI WASEEM AHMED
आदेश / O R D E R
PER BENCH: The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)–XI, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)-XI/96/Cir-5/10-11 dated 30/03/2012 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961(hereinafter referred to as "the Act") dated 05/05/2010 relevant to Assessment Year (AY) 2008-09.
2. The Revenue has raised the following grounds of appeal:
ACIT vs. Nirma Chemical Works Pvt.Ltd. Asst.Year - 2008-09 - 2 -
1. 1. The Ld.Commissioner of Income tax(A) has erred in law and on facts in deleting the disallowance of interest expenses of Rs.1,01,68,026/- u/s.36(1)(iii) of the I.T.Act.
2. The Ld.Commissioner of Income tax (A) has erred in law and on facts in restricting the disallowance of power project expenses to the extent of Rs.33,74,078/-, instead of disallowance of Rs.56,44,827/- made by the Assessing Officer.
3. The Commissioner of Income tax (A) has erred in law and on facts in directing the Assessing Officer not to make adjustment of disallowance of Rs.46,26,501/- u/s.14A of the Act, while computing MAT profit u/s.115JB of the Act.
4. On the facts and circumstances of the case, the Ld.Commissioner of Income tax (A) ought to have upheld the order of the Assessing Officer.
5. It is, therefore, prayed that the order of the Ld.Commissioner of Income tax (A) may be set-aside and that of the Assessing Officer be restored.
Before going to the merit of the cases, the ld.counsel for the assessee at the outset submitted that tax effect on the disputed total additions is below Rs.50 lakhs, therefore, by virtue of recent CBDT Circular No.17 of 2019 dated 8.8.2019, Department has been instructed not to file appeal before the Tribunal where tax effect is below Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. Per contra, the ld.DR did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.50 lakhs in the assessee case. He, however, left the issue to the Tribunal to pass appropriate order in the matter.
ACIT vs. Nirma Chemical Works Pvt.Ltd. Asst.Year - 2008-09 - 3 - 3. After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than Rs.50 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.
However, it is observed that in case on re-verification 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 Tribunal 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 Revenue is dismissed due to low tax effect.
In the result, appeal of the Revenue is dismissed due to low tax effect. This Order pronounced in Open Court on 24/02/2021 Sd/- Sd/- ( RAJPAL YADAV ) ( WASEEM AHMED ) VICE PRESIDENT ACCOUNTANT MEMBER Ahmedabad; Dated 24/02/2021 ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS
ACIT vs. Nirma Chemical Works Pvt.Ltd. Asst.Year - 2008-09