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

आदेश/O R D E R

PER Ms. MADHUMITA ROY - JM:

“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.

This Order pronounced in Open Court on 27/11/2019