THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2), AHMEDABAD vs. CODMACH MACHINERY PVT. LTD., AHMEDABAD

PDF · subscribers
ITA 1546/AHD/2016Status: DisposedITAT Ahmedabad15 October 2019AY 2012-132 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, accepting the assessee's argument that the tax effect did not exceed the revised monetary limit prescribed by the CBDT circular.

What were the facts?

The Revenue appealed against the deletion of an addition made on account of disallowance under Section 40(a)(i) of the Income Tax Act. 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 CBDT circular revising monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 143(3)

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 Jigar Patel, AR
Hearing: 23/09/2019

आदेश/O R D E R

PER AMARJIT SINGH - AM:

1.

The appeal filed by the Revenue for A.Y. 2012-13, arise from order of the CIT(A)-1, Ahmedabad dated 28.03.2016, 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. The CIT(A) has erred in law and on facts in deleting the addition of Rs. 96,21,380/- made on account of disallowance u/s. 40(a)(i) of the I.T. Act, 1961. 2. The CIT(A) has substantially erred in not appreciating and considering the finding of the AO that payment of fees for exploring the market in European Countries for its product are not covered under Article-14 of the DTAA.”

(DCIT vs. Cadmach Machinery Pvt. Ltd.) A.Y. 2012-13 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.

More judgments on Section 40(a)(i)

All 2,009 judgments and leading authorities on Section 40(a)(i) →

Recent GST High Court judgments

Search GST case law →