ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, KOTA vs. SHRI AJAY KUMAR JAIN, KOTA

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 792/JP/2018 fu/kZkj.k o"kZ@Assessment Year : 2012-13 cuke The ACIT, Shri Ajay Kumar Jain Vs. Circle-1, 277, Shopping Centre, Kota. Kota. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AANPJ 1861 B vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : None jktLo dh vksj ls@ Revenue by : Shri J. C. Kulhari (J.CIT) lquokbZ dh rkjh[k@ Date of Hearing : 27/07/2018 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 30/07/2018 vkns'k@ ORDER

PER: VIJAY PAL RAO, J.M. This appeal by the Revenue is directed against the order dated 08.03.2018 of CIT(A), Kota for the assessment year 2012-13. The Revenue has raised the following ground as under:-

“ 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 CIT(A) has erred in deleting the addition of Rs. 48,727/- made by the AO u/s 14A R.W. Rule 8D.

ITA No. 792/JP/2018 ACIT vs. Shri Ajay Kumar Jain

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

appeal was called for hearing. The only grievance of the Revenue is

against the addition of Rs. 48,727/- made U/s 14A of the Act deleted

by the ld. CIT(A). Undisputedly tax effect in this appeal of the Revenue

is not exceeding Rs. 20 lacs whereas as per the Circular No. 3/2018

dated 11.07.2018 of CBDT the Department shall withdraw all the

appeals having tax effect not exceeding Rs. 20 lacs pending before the

Tribunal. The ld. DR has submitted that as it is apparent from the

grounds of appeal the issue falls in the exception under para 10(b) of

Circular No. 3/2018.

which was deleted by the ld. CIT(A) by recording the fact that the

assessee’s own interest free fund was more than sufficient for the

investment in question and therefore, the disallowance made by the

AO on account of interest expenditure is not called for. At the outset

we note that the CIT(A) has deleted the disallowance made by the AO

by giving a finding of fact that no expenditure was incurred by the

assessee for earning exempt income. Further, as per Clause (b) of para 2

ITA No. 792/JP/2018 ACIT vs. Shri Ajay Kumar Jain 10 of Circular No. 3/2018 the issue which involves the Board order,

notices, instruction and Circular which has been held to be illegal or

ultra vires are required to be contested on merits even if the tax effect

is less than mandatory limit prescribed in these circular. The issue of

disallowance made U/s 14A does not involve the question of holding

any Board order, notices, instruction and Circular as illegal or ultra

vires. Accordingly, this issue does not fall in the exception as claimed

by the Department. Hence, when the tax effect in this appeal of the

Revenue is not exceeding the limits provided in the Circular No. 3/2018

the same is not maintainable. Accordingly the appeal of the Revenue is

dismissed.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 30/07/2018.

Sd/- Sd/- ¼fot; iky jko½ ¼foØe flag ;kno½ (Vikram Singh Yadav) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 30/07/2017. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- The ACIT, Circle-1, Kota. 2. izR;FkhZ@ The Respondent- Shri Ajay Kumar Jain, Kota. 3. vk;dj vk;qDr@ CIT 3

ITA No. 792/JP/2018 ACIT vs. Shri Ajay Kumar Jain 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 792/JP/2018} vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत