THE DCIT, CIRCLE-4(1)(2), AHMEDABAD vs. M/S. VEEDA CLINICAL RESEARCH PVT. LTD., AHMEDABAD

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ITA 1054/AHD/2017Status: DisposedITAT Ahmedabad13 March 2019AY 2012-133 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, acknowledging the applicability of CBDT Circular No. 3 of 2018 regarding monetary limits for appeals. The Revenue can seek restoration if the circular is inapplicable.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing depreciation on software at 60% and deleting disallowance under Section 14A. The assessee argued that the appeal was hit by CBDT Circular No. 3 of 2018 due to low tax effect.

What were the issues?

Whether the Revenue's appeal is maintainable in light of CBDT Circular No. 3 of 2018 concerning monetary limits for 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, “D” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Jagdish, CIT DR, Shri T.P. Hemani, AR

आदेश/O R D E R

PER PRADIP KUMAR KEDIA- AM:

The captioned appeal has been filed at the instance of the

Revenue against the order of the Commissioner of Income Tax

(Appeals)-8, Ahmedabad (‘CIT(A)’ in short), dated 20.02.2017

arising in the assessment order dated 02.03.2016 passed by the

ITA No.1054/Ahd/17 [DCIT vs.Veeda Clinical Research Pvt. Ltd.] A.Y. 2012-13 - 2 –

Assessing Officer (AO) under s. 144C r.w.s. 143(3) of the Income

Tax Act, 1961 (the Act) in the assessment year 2012-13.

2.

The ground of appeal raised by the Revenue reads as under:-

“1. Whether the Ld. CIT(A) is right in law and on facts in allowing the depreciation at the rate of 60% on software being customized license product under consideration instead of at the rate of 25%. 2. Whether the Ld. CIT(A) is right in law and on facts in deleting the disallowance of Rs. 21,58,292/- made on account of u/s 14A r.w.r. 8D of the Act.”

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.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,

ITA No.1054/Ahd/17 [DCIT vs.Veeda Clinical Research Pvt. Ltd.] A.Y. 2012-13 - 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 13/03/2019

Sd/- Sd/- (RAJPAL YADAV) (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 13/03/2019 True Copy Tanmay 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 ।

1.Date of dictation on 07.03.2019 as per low tax effect format 2.Date on which the typed draft is placed before the Dictating Member 07.03.2019 3.Date on which the approved draft comes to the Sr.P.S./P.S. 12.03.2019 4.Date on which the fair order is placed before the Dictating Member for pronouncement 13.03.2019 5.Date on which the fair order comes back to the Sr.P.S./P.S 13.03.2019 6.Date on which the file goes to the Bench Clerk 13.03.2019 7.Date on which the file goes to the Head Clerk…………. 8.The date on which the file goes to the Asstt. Registrar for signature on the order…………………… 9.Date of Despatch of the Order………

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