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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 478/JP/2018
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 Hkkxpan] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 478/JP/2018 fu/kZkj.k o"kZ@Assessment Year : 2013-14 cuke The ITO, Shri Taiyab Ali Vs. Ward-1(1), 256, Shopping Centre, Kota. Kota. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: ABSPB 8068 Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : None jktLo dh vksj ls@ Revenue by : Smt. Punam Rai (DCIT) lquokbZ dh rkjh[k@ Date of Hearing : 18/07/2018 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 20/07/2018 vkns'k@ ORDER
PER: VIJAY PAL RAO, J.M. This appeal by the Revenue is directed against the order dated 09.01.2018 of CIT(A), Kota for the assessment year 2013-14. The Revenue has raised the following grounds as under:- “(i) On the facts and circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 41,901/- made by the AO U/s 14A r.w. rule 8D. (ii) The appellant craves liberty to raise additional ground and to modify/amend the ground of appeal at the time of hearing.”
ITA No. 478/JP/2018 ITO vs Shri Taiyab Ali
None has appeared on behalf of the assessee-respondent this
appeal was called for hearing however, we find tax effect in this appeal
is only Rs. 15,000/- and therefore, even not exceeding Rs. 10 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 8(b) of the Circular No. 21/2015 and
para 10(b) of Circular No. 3/2018.
We find that the AO made disallowance of Rs. 41,901/- U/s 14A
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
8 of Circular No. 21/2015 or Clause (b) of para 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
ITA No. 478/JP/2018 ITO vs Shri Taiyab Ali 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. 21/2015 as well as 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 20/07/2018. Sd/- Sd/- ¼Hkkxpan ½ ¼fot; iky jko½ (Bhagchand) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 20/07/2018. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- The ITO, Ward-1(1), Kota. 2. izR;FkhZ@ The Respondent- Shri Taiyab Ali, Kota. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 478/JP/2018} vkns'kkuqlkj@ By order, सहायक पंजीकार@Aेेज. त्महपेजतंत 3