THE ASSISTANT COMMR. OF INCOME TAX, MORBI CIRCLE, RAJKOT-GUJARAT vs. M/S MOTTO TILES PVT. LTD., MORBI

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ITA 306/RJT/2016Status: DisposedITAT Rajkot12 November 2020AY 2012-133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was hit by the CBDT Circular No. 17 of 2019, which sets monetary limits for filing appeals. Consequently, the appeal was dismissed as not maintainable.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of additions made under Section 68 for share subscription money and estimated commission. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable given the monetary limits prescribed by CBDT circulars for appeals with a low tax effect.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “RAJKOT” BENCH, RAJKOT

Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Suhas Mistry, Sr. D.R, Shri Vimal Desai, A.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

1.

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-3, Rajkot (‘CIT(A)’ in short), dated 08.06.2016 arising in the assessment order dated 28.03.2015 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning A.Y. 2012-13.

[ACIT vs. M/s. Motto Tiles Pvt. Ltd.] A.Y. 2012-13 - 2 -

2.

The substantive ground of appeal raised by the Revenue reads as under:-

“1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.700,00,000/- made u/s.68 of the I.T. Act, 1961 in respect of introduction of unaccounted money under the guise of share subscription money.

2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.1,40,000/- made on account of estimated commission paid for getting accommodative entries holding that since the addition in respect of unaccounted income introduced in the books of accounts under the guise of share subscription money made at Rs.70,00,000/-has been deleted, the addition made on account of estimated commission at Rs.1,40,000/- for getting such accommodative entries does not survive.

3. On the facts of the case and in law, the Ld. C.I.T.(A) ought to have upheld the assessment order of the A.O.”

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. It is inter alia noticed that the CBDT vide Instruction No. F. No. 279/Misc/M-93/2018-ITJ dt. 20/08/2019 has observed that Circular No.17/2019 dated 08/08/2019 relating to enhancement of monetary limits is also applicable to all pending appeals. As per aforesaid Circular read with instruction, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

4.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, [ACIT vs. M/s. Motto Tiles Pvt. Ltd.] A.Y. 2012-13 - 3 - it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

5.

In the result, the appeal of the Revenue is dismissed.

This Order pronounced on 12/11/2020

Sd/- Sd/- (RAJPAL YADAV) (PRADIP KUMAR KEDIA) VICE PRESIDENT ACCOUNTANT MEMBER Ahmedabad: Dated 12/11/2020 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order

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