THE ACIT, CIRCLE-1(3), AHMEDABAD vs. M/S. KIFS SECURITIES LIMITED, AHMEDABAD

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ITA 3516/AHD/2016Status: DisposedITAT Ahmedabad13 September 2019AY 2013-142 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable due to the applicability of CBDT Circular No. 17 of 2019, which revises monetary thresholds for filing appeals. The appeal was dismissed on this ground.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting disallowances related to depreciation, insurance, and bad debts, and restricting additions for book profit calculation. 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 in light of the revised monetary limits prescribed by CBDT Circular No. 17 of 2019.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 115JB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH

For Appellant: Shri M. K. Patel, AR
Hearing: 13/09/2019

आदेश/O R D E R

PER AMARJIT SINGH - AM:

1.

The appeal filed by the Revenue for A.Y. 2013-14, arise from order of the CIT(A)-10, Ahmedabad dated 26.10.2016, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

2.

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

“1. That the ld. CIT(A) has erred in law and on facts in deleting the disallowance of depreciation and insurance on motor car of Rs. 12,40,270/- made by the AO.

2. That the ld. CIT(A) erred in law and on facts in restricting the addition of Rs. 13,86,072/- out of total disallowance made by the AO of Rs. 76,59,151/- while calculating the Book Profit u/s. 115JB of the Act.

3.

That the ld.CIT(A) has erred in law and on facts in deleting the disallowance of bad debts of Rs. 36,74,000/- made by the AO.”

[ACIT vs.M/s. Kifs Securities Ltd.] A.Y. 2013-14 2 3. At the time of hearing, it was submitted by the Ld.AR for the assessee that 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. As per aforesaid Circular, 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, 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 in Open Court on 13/09/2019

Sd/- Sd/- (RAJPAL YADAV) (AMARJIT SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 13/09/2019 TANMAY TRUE COPY 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/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण,अहमदाबाद । 2

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