THE ITO, WARD-3(1)(4), AHMEDABAD vs. M/S. PURNIMA ADV. AGENCY P. LTD., AHMEDABAD

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ITA 3070/AHD/2016Status: DisposedITAT Ahmedabad10 May 2018AY 2009-102 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 dismissed the Revenue's appeal, citing a CBDT circular regarding withdrawal of appeals with low tax effect. Consequently, the assessee's cross-objection was also dismissed.

What were the facts?

The Revenue's appeal challenged the deletion of an addition made on account of disallowance under Section 14A. The net tax effect of the appeal was less than Rs. 10 lacs. The assessee had also filed a cross-objection.

What were the issues?

Whether an appeal with a low tax effect should be withdrawn or not pressed as per CBDT circulars. The impact of such circulars on pending appeals.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: Shri Rajpal Yadav & Shri Amarjit Singh

For Appellant: Shri Pranav N. Shah
For Respondent: Shri Prasoon Kabra, Sr. D.R, Shri Pranav N. Shah

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri Rajpal Yadav, Judicial Member and Shri Amarjit Singh, Accountant Member ITA No. 3070 & CO No. 214 /Ahd/2016 Assessment Year 2009-10

The ITO, M/s. Purnima Adv. Agency Ward-3(1)(4), P. Ltd. Ahmedabad Vs 5, Sweta Park Society, Nr. (Appellant/Respondent) Menekbaug Hall, Ambawadi, Amedabad-15 PAN: AAACP9266G (Respondent/Cross Objector)

Revenue by: Shri Prasoon Kabra, Sr. D.R. Assessee by: Shri Pranav N. Shah Date of hearing : 27-04-2018 Date of pronouncement : 10-05-2018 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-

This Revenue’s appeal and assessee’s cross objection for A.Y. 2009-10, arise from order of the CIT(A)-9, Ahmedabad dated 02-09-2016, in proceedings under section 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short “the Act”.

2.

The Revenue’s sole substantive ground challenges the lower appellate order deleting the addition made on account of disallowance of Rs. 23,31,799/- u/s. 14A of the act. There is no dispute that the net tax effect in the instant appeal is less than Rs. 10 lacs. We find that the Central Board of Direct Taxes; hereafter the ‘Board’ has issued the circular no. 21/2015 dated 10-12-2015

I.T.A No. 3070 & CO No. 214/Ahd/2016 A.Y. 2009-10 Page No 2 ITO vs. Purnima Advertising Agency

clearly envisaging therein that department’s pending appeals before the tribunal/high courts are to be withdrawn/not pressed as per the above stated circular. The same has been declared to be having retrospective effect in other words. We take into consideration the above stated Board’s circular and dismiss the instant appeal accordingly.

3.

This Revenue’s appeal is dismissed as having low tax effect.

CO No. 214/Ahd/2016

4.

Since the appeal of the Revenue has been dismissed on account of low tax effect as supra, therefore, the cross objection filed by the assessee also stands dismissed.

5.

In the combined result, both the appeal of the revenue and cross objection of the assessee are dismissed. Order pronounced in the open court on 10-05-2018

Sd/- Sd/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 10/05/2018 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद

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