THE ITO, WARD-2(1)(2), AHMEDABAD vs. K.P. WOVEN PVT. LTD., AHMEDABAD

PDF · subscribers
ITA 999/AHD/2018Status: DisposedITAT Ahmedabad15 October 2019AY 2014-152 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 noted that the Revenue's appeal was subject to a CBDT circular that revised monetary thresholds for appeals. As the tax effect in this case did not exceed the revised limit, the appeal was dismissed.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting a significant portion of an addition made under Section 56(2)(vii)(b). The assessee argued that the Revenue's appeal was hit by a CBDT circular regarding monetary limits for filing appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of the revised monetary limits prescribed by the CBDT for filing appeals.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(b),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH

Hearing: 15/10/2019

आदेश/O R D E R

PER AMARJIT SINGH - AM:

1.

The appeal filed by the Revenue for A.Y. 2014-15, arise from order of the CIT(A)-2, Ahmedabad dated 01.01.2018, 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 law and on facts in deleting the addition of Rs. 1,39,70,330/- out of total addition of Rs. 1,85,22,460/- made u/s. 56(2)(vii)(b) of the Act. 2. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary.”

(ITO vs. K P Woven Pvt. Ltd.) A.Y. 2014-15 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 56(2)(vii)(b)

All 626 judgments and leading authorities on Section 56(2)(vii)(b) →

Recent GST High Court judgments

Search GST case law →