ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2, VADODARA, VADODARA vs. NATIONAL BUILDERS INFRASTRUCTURE PRIVATE LIMITED, VADODARA

PDF · subscribers
ITSSA 11/AHD/2024Status: DisposedITAT Ahmedabad17 October 2024AY 2018-194 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The Tribunal held that the Revenue's appeal was to be dismissed as withdrawn, following CBDT Circular No. 09/2024, as the tax effect was confirmed to be less than Rs.60 lakhs. The Tribunal explicitly stated that the request to invoke Section 150(1) of the Act did not arise, as CBDT Circulars issued under Section 268A are measures to reduce litigation and cannot be entertained at this stage. Consequently, the Revenue's appeal was dismissed. Regarding the Cross Objection, the Tribunal noted that the assessee's counsel did not press it because the Department's appeal was dismissed on the low tax effect circular. Therefore, the Cross Objection filed by the assessee was also dismissed. The operative direction was the dismissal of both the Revenue's appeal and the assessee's Cross Objection.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order dated 22.12.2023 passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad. This order arose from an assessment order passed under section 143(3) read with section 153C of the Income Tax Act, 1961, for the Assessment Year 2018-19. The assessee, National Builders Infrastructure Pvt. Ltd., also filed a Cross Objection. During the proceedings, the ITAT noted that the tax effect in the Revenue's appeal was Rs.59,16,186/-. The Jurisdictional Assessing Officer confirmed this and stated that the tax effect was less than Rs.60 lakhs as per CBDT Circular No. 09/2024, making the appeal liable for dismissal as withdrawn. The AO also requested invocation of Section 150(1) for a pending appeal for AY 2019-20.

What were the issues?

1. Whether the Revenue's appeal is liable to be dismissed as withdrawn due to low tax effect, as per CBDT Circular No. 09/2024? The Revenue, through its Jurisdictional Assessing Officer, argued that while the tax effect was below the threshold for the current appeal, it requested the Tribunal to consider invoking Section 150(1) of the Act if the appeal for the subsequent Assessment Year 2019-20 (where the tax effect exceeded Rs.60 lakhs) was sustained, to issue necessary directions regarding the addition of undisclosed income on account of bogus expenditure under Section 69C. 2. Whether the assessee's Cross Objection should be dismissed? The assessee's counsel stated they did not press the Cross Objection since the Revenue's appeal was dismissed on the grounds of low tax effect.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153C,Section 150(1),Section 69C,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Smt. Annapurna Gupta & Shri T.R. Senthil Kumar

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member

IT(SS)A No.11/Ahd/2024 & C.O. No. 5/Ahd/2024 Assessment Year 2018-19

Assistant Commissioner National Builders of Income Tax, Infrastructure Pvt. Central Circle-2, Vs Limited Vadodara 102B, Sterling Centre Alkapuri S.O., Vadodara, Gujarat-390007 PAN: AACCN2069F National Builders Assistant Infrastructure Pvt. Commissioner Limited Vs of Income Tax, 102B, Sterling Centre Central Circle-2, Alkapuri S.O., Vadodara Vadodara, Gujarat-390007 PAN: AACCN2069F (Respondent) (Appellant) Revenue Represented: Shri V Nandakumar, CIT-DR Assessee Represented: Ms. Amrin Pathan, A.R. Date of hearing : 16-10-2024 Date of pronouncement : 17-10-2024 आदेश/ORDER

I.T(SS).A No. 11/Ahd/24 & C.O. 5/Ahd/24 A.Y. 2018-19 Page No 2 ACIT Vs. National Builders Infrastructure Pvt. Ltd.

PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Revenue as against the appellate order dated 22.12.2023 passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad arising out of the assessment order passed under section 143(3) r.w.s. 153C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19. As against the above Revenue appeal, assessee has filed Cross Objection No. 5/Ahd/2024.

2.

At the outset, the Department was requested to verify the Tax Effect in the above appeal as per the new Board Circular, since in Form No. 36 the tax effect is mentioned as Rs.59,16,186/-. In reply vide letter dated 15-10-2024, the Jurisdictional Assessing Officer has confirmed that the tax effect in the above appeal is less than Rs.60 lakhs as per CBDT Circular No. 09/2024 dated 17-09-2024 and thereby the Revenue appeal is liable to be dismissed as withdrawn. However, the Assessing Officer also claimed since Department appeal for next Asst. Year 2019-20 where the tax effect is more than Rs.60 lakhs which is pending before the Tribunal. Therefore if the ITAT impressed upon the Department’s appeal for the Asst. Year 2019-20 and sustain the addition in future and then necessary direction as per provisions of Section 150(1) of the Act may be issued on the very same addition of undisclosed income made on account of bogus expenditure u/s. 69C of the Act.

3.

Considered the submission of the JAO, following CBDT Circular No. 09/2024, the appeal filed by the Revenue is hereby dismissed

I.T(SS).A No. 11/Ahd/24 & C.O. 5/Ahd/24 A.Y. 2018-19 Page No 3 ACIT Vs. National Builders Infrastructure Pvt. Ltd.

as withdrawn. Further the JAO request to invoke provisions of Section 150(1) of the Act does not arise. Since the Circulars issued by the CBDT u/s. 268A of the Act is a measure for reducing litigation by the Revenue before various Appellate Forums. Therefore this request cannot be entertained at this stage.

4.

In the result, the appeal filed by the Revenue is dismissed.

5.

The Ld. Counsel for the assessee does not press the C.O. filed by the assessee, since the Department appeal was dismissed on Low Tax Effect Circular.

6.

Recording the same, the Cross Objection filed by the Assessee is hereby dismissed.

7.

In the combined result, the appeal filed by the Revenue and Cross Objection filed by the Assessee are dismissed.

Order pronounced in the open court on 17-10-2024

Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 17/10/2024 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A)

I.T(SS).A No. 11/Ahd/24 & C.O. 5/Ahd/24 A.Y. 2018-19 Page No 4 ACIT Vs. National Builders Infrastructure Pvt. Ltd.

5.

DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,

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

More judgments on Section 153C

All 9,619 judgments and leading authorities on Section 153C →

Recent GST High Court judgments

Search GST case law →