ASSISTANT COMMISSIONER OF INCOME TAX, KOTA vs. M/S N R SWITCH - -RADIO, KOTA

PER VIJAY PAL RAO, JM :

This appeal by the Revenue is directed against the order dated 23rd May,

2018 of ld. CIT (A), Kota for the assessment year 2014-15. The revenue has

raised the following grounds :-

“ On the facts and in the circumstances of the case, the ld. CIT (A) has erred in :-

(i) On the facts and in the circumstances of the case, the ld. CIT (A) has erred in deleting the addition of Rs. 7734/- made by the AO u/s 14A r.w.r. 8D.

(ii) The appellant craves liberty to raise additional ground and to modify/amend the ground of appeal at the time of hearing.

2 ITA No. 951/JP/2018 M/s. N.R. Switch N Radio Service Pvt. Ltd., Kota.

The issue falls under exception as mentioned in para 10(b) of Board’s Circular No. 3/2018 dated 11.07.2018.”

impugned order of ld. CIT (A). As apparent from the ground no. 1 of the revenue’s

appeal that the tax effect in this appeal is not exceeding Rs. 20 lacs and, therefore,

the monetary limit provided under CBDT Circular No. 3/2018 dated 11.07.2018

renders the appeal filed by the department not maintainable. The ld. D/R has

submitted that the issue of disallowance made by the AO under section 14A read

with Rule 8D which was deleted by the ld. CIT (A) without following the Circular No.

5/2014. Hence the case falls in the exception provided in para 10(b) of the Circular.

We note that the ld. CIT (A) has deleted the disallowance made by the AO on the

ground that the assessee has not earned any exempt income and, therefore,

following the various decisions on this issue, no disallowance can be made under

section 14A. Thus it is clear that the ld. CIT (A) has not given the finding on the

issue by holding that the Circular issued by the CBDT is illegal or ultra virus but the

issue has been decided by following the decisions of Hon’ble High Courts. Hence

when no issue is involved in this case where the CBDT circular is either held illegal or

ultra virus, then the case would not fall in the exception under para 10(b) of the

Circular No. 3/2018 as claimed by the revenue. Accordingly when the tax effect in

the appeal of the revenue is below the limit set out by CBDT for the appeal, the appeal of

the assessee is not maintainable in view of CBDT Circular No. 3 of 2018 dated 11.07.2018. Accordingly the appeal of the Department is dismissed as not maintainable.

3 ITA No. 951/JP/2018 M/s. N.R. Switch N Radio Service Pvt. Ltd., Kota.

Order is pronounced in the open court on 12/10/2018.

Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member

Jaipur Dated:- 12/10/2018. Das/

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

4 ITA No. 951/JP/2018 M/s. N.R. Switch N Radio Service Pvt. Ltd., Kota.