ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, KOTA vs. M/S AHLUWALIA ERECTORS & FABRICATORS PVT. LTD., KOTA

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ITA 952/JPR/2018Status: DisposedITAT Jaipur08 February 2019AY 2014-153 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the tax effect in the Revenue's appeal was below the prescribed limit of Rs. 20 lacs as per CBDT Circular No. 3 of 2018. Therefore, the appeal was not maintainable.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order for AY 2014-15, challenging the restriction of an addition and deletion of another addition. The assessee raised an objection regarding the maintainability of the appeal.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT when the tax effect is below the monetary limit prescribed by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 145(3),Section 268A(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES “A”, JAIPUR

Before: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 952/JP/2018

Hearing: 06/02/2019Pronounced: 08/02/2019

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “A”, JAIPUR Jh jes'k lh 'kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 952/JP/2018 fu/kZkj.k o"kZ@Assessment Year : 2014-15 cuke Assistant Commissioner of M/s Ahluwalia Erectors & Vs. Income Tax, Fabricators Pvt. Ltd., Circle-1, Kota. E-77, Road No. 4, I.P.I.A., Kota. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAHCA 0089 K vihykFkhZ@Appellant izR;FkhZ@Respondent jktLo dh vksj ls@ Revenue by : Shri Karni Dan (JCIT) fu/kZkfjrh dh vksj ls@ Assessee by : Shri Hemang Gargieya (Adv) lquokbZ dh rkjh[k@ Date of Hearing: 06/02/2019 mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 08/02/2019 vkns'k@ ORDER PER: R.C. SHARMA, A.M. This is an appeal filed by revenue against the order of ld.CIT(A), Kota dated 02/05/2018 for the A.Y. 2014-15 in the matter of order passed U/s 143(3) of the Income Tax Act, 1961 (in short the Act). Following grounds have been taken by the revenue: "On the facts and in the circumstances of the case, the ld. CIT(A) has erred in:- (i) On the facts and circumstances of the case, the CIT(A) has erred in restricting the addition of Rs. 19,19,088/- out of total addition of Rs. 23,69,086/- made by the A.O. after rejection of books of account U/s 145(3). (ii) On the facts and circumstances of the case, CIT(A) has erred in deleting the addition of Rs. 13,73,734/- made by the A.O. on account of difference in ITS data 26AS.

2.

At the time of hearing, the ld. AR of the assessee has raised an objection of maintainability of the appeal of the Revenue due to the tax effect not exceeding Rs. 20 lacs as per the CBDT Circle No. 3 of 2018 dated 11th July, 2018. The ld. A/R submitted that in the facts of the present case, tax effect in Revenue’s appeal is stated to be below the prescribed limit of Rs. 20 lacs.

3.

The ld. D/R has fairly submitted that the tax effect involved in the Revenue’s appeal is less than 20 lacs which is prescribed threshold limit in terms of the CBDT Circular No. 3/2018 dated 11th July, 2018 issued in supersession of its earlier Circular No. 21 of 2015 dated 10.12.2015.

4.

We have considered the rival contentions and carefully gone through the orders of the authorities below. It is observed that the demand/ tax effect in the Revenue’s appeal in question is below Rs. 20.00 lacs . Under the powers vested by section. 268A(1) of the I T Act, CBDT has recently issued Circular No.3/2018 dated 11th July, 2018 (F No. 279/Misc. 142/2007-ITJ(Pt)instructing the authorities below that departmental appeal should not be filed before ITAT where the demand/tax effect does not exceed Rs. 20 lacs. The circular is specifically mentioned to be applicable for all pending appeals. the departmental appeals pending before ITAT where the demand/tax effect is not exceeding than 20 lacs should be either withdrawn or not pressed by the departmental representatives.

6.

The present appeal is not covered by any exceptions mentioned in the said CBDT circular. Since the tax demand in dispute in this departmental appeal is below the limit set out by CBDT for the appeal, the appeal of the revenue is not maintainable in view of CBDT Circular No. 3 of 2018 dated 11.07.2018. Accordingly the appeal of the Department is dismissed as not pressed/withdrawn.

7.

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

Order pronounced in the open court on 08th February, 2019. Sd/- Sd/- ¼fot; iky jko½ ¼jes'k lh 'kekZ½ (VIJAY PAL RAO) (RAMESH C SHARMA) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 08th February, 2019 *Ranjan आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- The ACIT, Circle-1, Kota. 2. izR;FkhZ@ The Respondent- M/s Ahluwalia Erectors & Fabricators Pvt. Ltd., Kota. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण]जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File (ITA No. 952/JP/2018) vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत

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