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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA Nos. 762 & 763/JP/2018
PER VIJAY PAL RAO, J.M.
These two appeals by the Revenue are directed against two separate orders of ld. CIT (A)-I, Jaipur both dated 27.03.2018 for the assessment years 2013-14 and 14-15 respectively. The grounds by the Revenue in ITA No. 762/JP/2018 are as under :-
“ 1. Whether on the facts and in the circumstances of the case, the CIT (A) was right in deleting the disallowance of credit card charges paid to Bank u/s 40(a)(ia) of the Act amounting to Rs. 5,04,193/-. 2. Whether on the facts and in the circumstances of the case, the CIT (A) was right in deleting the disallowance u/s 36(1)(va) r.w.s. 2(24)(x) of PF &ESI dues of employees amounting to Rs. 19,22,350/-.
2 ITA Nos. 762 & 763/JP/2018 M/s. Chokhi Dhani Resorts Pvt. Ltd., Jaipur.
Whether on the facts and in the circumstances of the case, the CIT (A) was right in deleting the lump sum disallowance out of Advt. business promotion, travelling, conveyance expenditures amounting to Rs. 7,00,000/-. The appellant crave, leave or reserves the right to amend modify, alter add or forego any ground (s) of appeal at any time before or during the hearing of this appeal.”
Grounds raised in ITA No. 763/JP/2018 :
Whether on the facts and in the circumstances of the case, the CIT (A) was right in deleting the disallowance u/s 36(1)(va) r.w.s. 2(24)(x) of PF & ESI dues of employees amounting to Rs. 24,47,717/-. 2. Whether on the facts and in the circumstances of the case, the CIT (A) was right in deleting the addition of Rs. 64,000/- on account of allotment of shares at lower rate by Rs/ 8/- per share. 3. Whether on the facts and in the circumstances of the case, the CIT (A) was right in deleting the lump sum disallowance out of Advt. business promotion, travelling, conveyance expenditures amounting to Rs. 9,50,000/-. The appellant crave, leave or reserves the right to amend modify, alter add or forego any ground (s) of appeal at any time before or during the hearing of this appeal.”
The disputes in the appeal of the revenue for the A.Y. 2013-14 are regarding
disallowance/deletion of additions of Rs. 5,04,193/- made by the AO on account of
credit card charges paid to bank, Rs. 19,22,350/- made by the AO on account of PF
& ESI dues of the employees and Rs. 7,00,000/- on account Advertisement, business
promotion, travelling, conveyance expenses etc. and for the A.Y. 2014-15 the
disputes are regarding disallowance/deletion of additions of Rs. 24,47,717/- on
account of PF & ESI dues of employees, Rs. 64,000/- on account of allotment of
3 ITA Nos. 762 & 763/JP/2018 M/s. Chokhi Dhani Resorts Pvt. Ltd., Jaipur.
shares at lower rate and Rs. 9,50,000/- on account of Advertisement, business
promotion, travelling, conveyance expenses etc. Admittedly the tax effect in each
of the revenue’s appeals is not exceeding the limit of Rs. 20 lacs as per CBDT
Circular No. 3 of 2018.
2.1. The ld. D/R has fairly submitted that the tax effect involved in each of the
Revenue’s appeal is less than 20 lacs which is prescribed threshold limit in terms of the CBDT Circular No. 3/2018 dated 11th July, 2018 issued in supersession of its
earlier Circular No. 21 of 2015 dated 10.12.2015.
We have heard the rival contentions and perused the materials available on
record. It is observed that the demand/ tax effect in the Revenue’s appeals in
question is below Rs. 20.00 lacs . Under the powers vested by section. 268A(1) of the I T Act, CBDT has recently issued Circular No. 3/2018 dated 11th July,
2018 (F No. 279/Misc. 142/2007-ITJ(Pt) instructing the authorities
below that departmental appeal should not be filed before ITAT where
the demand/tax effect does not exceed Rs. 20 lacs. The circular is specifically
mentioned to be applicable for all pending appeals.
Subject to some exceptions, it is further directed by CBDT that all the
departmental appeals pending before ITAT where the demand/tax effect is not
exceeding than 20 lacs should be either withdrawn or not pressed by the
departmental representatives.
The present appeal is not covered by any exceptions mentioned in the said
CBDT circular. Since the tax demand in dispute in this departmental appeal is below
the limit set out by CBDT for the appeal, the appeal of the assessee is not
4 ITA Nos. 762 & 763/JP/2018 M/s. Chokhi Dhani Resorts Pvt. Ltd., Jaipur.
maintainable in view of CBDT Circular No. 3 of 2018 dated 11.07.2018. Accordingly
the appeal of the Department is dismissed as not pressed/withdrawn.
In the result, the appeals of the Revenue are dismissed.
Order pronounced in the open court on 14/08/2018.
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:- 14/08/2018. Das/
आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
The Appellant- The DCIT,Circle-3, Jaipur. 2. The Respondent – M/s. Chokhi Dhani Resorts Pvt. Ltd., Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 762 & 763/JP/2018) vkns'kkuqlkj@ By order,
सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत