THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(3), AHMEDABAD vs. KIFS SECURITIES PVT. LIMITED, AHMEDABAD

PDF · subscribers
ITA 2028/AHD/2017Status: DisposedITAT Ahmedabad03 October 2019AY 2014-153 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 held that the Revenue's appeal was no longer maintainable due to the low tax effect, as per the revised monetary limits prescribed by CBDT Circular No. 17 of 2019. This circular applies to pending appeals, making the current appeal non-maintainable.

What were the facts?

The Assessing Officer appealed the CIT(A)'s order deleting disallowances related to depreciation, insurance, Section 14A, and bad debts. The assessee argued the appeal should be dismissed due to low tax effect, citing a CBDT circular increasing the monetary limit for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the low tax effect in light of the CBDT's revised monetary limits for filing appeals.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD BENCH ‘D’, AHMEDABAD

PER JUSTICE P P BHATT, PRESIDENT :

1.

By way of this appeal, the Assessing Officer has challenged correctness of the order dated 30th June 2017, passed by the learned CIT(A)-10, Ahmedabad for the assessment year 2014-15.

2.

Grievances raised by the Assessing Officer are as follows:

“(1)That the ld. CIT(A) has erred in law and on the facts in deleting disallowance made by AO on account of depreciation & insurance on vehicele Rs. 11,04,282/-

(2) That the ld. CIT(A) has erred in law and on the facts in deleting disallowance made by AO u/s 14A r.w.s. 8D(2)(ii) of Rs.32,92,710/-

(3) That the ld. CIT(A) has erred in law and on the facts in deleting disallowance made by AO on account of bad debts of Rs.99,54,981/-.”

3.

When this appeal was called out for hearing, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No. 17 of 2019 dated 08.08.2019 whereby the monetary limits for filing the appeal by the Revenue before the Tribunal

DCIT Vs. KIFS Securities Pvt Ltd Assessment Year : 2014-15 Page 2 of 3 was enhanced from Rs.20 lakhs to Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed as non-maintainable as held by this Tribunal in the case of ITO Vs. Dinesh Madhavlal Patel in for AY 1998-99 vide a consolidated order dated 14.08.2019.

4.

The learned Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

5.

We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. As learned counsel rightly contends, this appeal of the Revenue is no longer maintainable in view of the recent CBDT Circular No. 17 of 2019 dated 08.08.2019. The mandatory limit for cases in which Revenue can challenge the relief granted by the CIT(A) now stands enhanced to Rs.50 lakhs. This concession granted by the Central Board of Direct Taxes (CBDT) is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and must be dismissed as such.

6.

It is, however, made clear that on re-verification at the end of the Assessing Officer it comes out that the tax effect of more than Rs.50 lakhs is being involved in the appeal or the appeal falls within the exemption clause of the Circular, then the Revenue will be at liberty to file Miscellaneous Application to recall the Tribunal order. The application should be filed within time limit prescribed in the Act.

7.

In the result, appeal of the Revenue is dismissed due to low tax effect. Pronounced in the open court today on the 3rd October, 2019.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →