ASSISTANT COMMISSIONER OF INCOME TAX, PUNE vs. PANDIT AUTOMOTIVE PVT.LTD, PUNE

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ITA 1371/PUN/2017Status: DisposedITAT Pune22 July 2019AY 2013-144 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 was dismissed due to low tax effect, as per the CBDT Circular No. 3/2018 which raised the monetary limit for departmental appeals to Rs. 20 lakhs. The Revenue was granted liberty to seek restoration if exceptions applied.

What were the facts?

The Department appealed an order of the CIT(Appeals) for AY 2013-14. The appeal concerned the disallowance of interest expenditure on an advance given by the assessee. The tax effect in the appeal was found to be less than the revised monetary limit set by a CBDT circular.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 36(1)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM

Hearing: 22.07.2019Pronounced: 22.07.2019

आदेश / ORDER

PER VIKAS AWASTHY, JM

This appeal by the Department is directed against the order of Commissioner of Income Tax (Appeals)-3, Pune dated 28.02.2017 for the assessment year 2013-14.

2 ITA No.1371/PUN/2017 A.Y.2013-14

2.

The CBDT vide Circular No.3/2018, dated 11.07.2018 has revised the monetary limits for filing of appeals by the Department before the Tribunal with retrospective effect. As per the Circular (supra), the monetary limit of tax effect for filing appeals before the Tribunal by the Department has been raised to Rs.20 lakhs.

3.

The Ld. DR fairly admitted that in the present appeal by the Department tax effect is less than Rs.20 Lakhs.

4.

We have perused the case record and heard the submissions of the Ld. DR. The only issue raised in appeal by the Department is disallowance of interest expenditure u/s.36(1)(iii) on advance of Rs.48,06,057/- given to Ashok Automotives Sales & Services Pvt. Ltd. by the assessee. Undisputedly, the tax effect involved in appeal is less than the monetary limit prescribed by CBDT Circular for filing of appeals before the Tribunal by the Department. The CBDT vide Circular No. 3/2018, dated 11-07-2018 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to Rs.20 lakhs. The Circular applies to the appeals to be filed by the Department in future as well as the appeals pending before the Tribunal. Without going into merit of the grounds raised in the appeal, in view of the CBDT Circular (supra.), the present appeal of the Revenue is dismissed on account of low tax effect.

5.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular (supra).

3 ITA No.1371/PUN/2017 A.Y.2013-14

6.

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open Court after hearing of appeal on Monday, the 22nd day of July, 2019.

Sd/- Sd/- (डी. करुणाकरा राव/D. KARUNAKARA RAO) (ववकास अवस्थी /VIKAS AWASTHY) ऱेखा सदस्य/ACCOUNTANT MEMBER न्याययक सदस्य/JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 22nd July, 2019 SB आदेश की प्रयिलऱवऩ अग्रेवषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. 3. The CIT(Appeals)-3, Pune. 4. The Pr. CIT-2, Pune. , आयकर अऩीऱीय अधधकरण, “ए” बेंच, 5. ववभागीय प्रयतयनधध ऩुणे / DR, ITAT, “A” Bench, Pune. गार्ड फ़ाइऱ / Guard File. 6.

// True Copy // आदेशानुसार / BY ORDER,

यनजी सधचव / Private Secretary आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune.

4 ITA No.1371/PUN/2017 A.Y.2013-14

Date 1 Draft dictated on 22.07.2019 Sr.PS/PS 2 Draft placed before author 22.07.2019 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order

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