THE DCIT, CIRCLE-1(1)(2), AHMEDABAD vs. M/S. CHEM PROCESS SYSTEMS PVT. LTD., AHMEDABAD

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ITA 1100/AHD/2017Status: DisposedITAT Ahmedabad28 June 2019AY 2013-143 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 appeal filed by the Revenue was not maintainable due to the applicability of CBDT Circular No. 3 of 2018, which revises monetary thresholds for tax effect in appeals. The Revenue's appeal was dismissed on this ground.

What were the facts?

The Revenue appealed against the deletion of additions made on account of disallowance of payments to Codeware Inc and Graham Corporation. 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 revised monetary limits prescribed by CBDT Circular No. 3 of 2018.

Which sections of the Income-tax Act were involved?

Section 9(1)(vii)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Vinod Tanwani, Sr.D.R, Shri Mehul Talera, A.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

1.

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-1, Ahmedabad (‘CIT(A)’ in short), dated 28.02.2017 arising in the assessment order dated 29.01.2016 passed by the [DCIT vs. M/s. Chem Process Systems Pvt. Ltd.] A.Y. 2013-14 - 2 - Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2013-14.

2.

The grounds of appeal raised by the Revenue read as under:-

“That the ld. CIT(A) erred in law and on facts in deleting the addition of Rs.1,33,900/- made on account of disallowance of payment made to Codeware Inc and Rs.56,92,500/- paid to Graham Corporation of USA by invoking Section 9(1)(vii)(c) r.w. Explanation (2) of the I.T.Act.”

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.3 of 2018 dated 11/07/2018 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.20 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.20 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. 3 of 2018. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, [DCIT vs. M/s. Chem Process Systems Pvt. Ltd.] A.Y. 2013-14 - 3 - 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 28/06/2019

Sd/- Sd/- (RAJPAL YADAV) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 28/06/2019 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।

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