THE DCIT, (EXEMPTION),CIRCLE-2, AHMEDABAD vs. NANDESARI INDUSTRIES ASSOCIATION, NANDESARI

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ITA 1812/AHD/2018Status: DisposedITAT Ahmedabad27 November 2019AY 2015-163 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 dismissed the Revenue's appeal as not maintainable because the tax effect did not exceed the revised monetary limit prescribed by CBDT Circular No. 17 of 2019.

What were the facts?

The Revenue appealed against an order allowing exemptions under Section 11. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for tax effects.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect as per the latest CBDT circular.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Ankit Chokshi, AR
Hearing: 27/11/2019

आदेश/O R D E R

PER Ms. MADHUMITA ROY - JM:

1.

The appeal filed by the Revenue for A.Y. 2015-16, arise from order of the CIT(A)-9, Ahmedabad dated 15.06.2018, 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. The Ld. CIT(A) has erred in the law and facts in allowing the benefit of exemptions u/s. 11 without considering the fact that the assessee is involved in widespread commercial activities in nature of business and the activity of the assessee is covered under first and second proviso to sec. 2(15) of the Act.

[DCIT vs. Nandesari Industries Association] A.Y. 2015-16 2 2. The Ld. CIT(A) has erred in the law on facts in deleting the addition of Rs. 1,05,70,846/- made on account of disallowance of ECP contribution expenses without appreciating the fact that once the proviso to section 2(15) is applicable, the benefit of section 11 and 12 cannot allowed further. 3. The revenue craves over leave to ad, alter, amend, modify, substitute, delete and/or any Grounds of Appeal on or before the final hearing, in necessity so arises.”

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 27/11/2019

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