THE ASSISTANT COMMR. OF INCOME TAX, CIRCLE-2, JAMNAGAR vs. M/S RANJIT FREIGHT CARRIER, JAMNAGAR

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ITA 600/RJT/2015Status: DisposedITAT Rajkot13 August 2018AY 2012-133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as the tax effect was below the threshold prescribed by CBDT Circular No. 3 of 2018, and the case did not fall under any exceptions. Therefore, the appeal was dismissed.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting additions made on account of unreconciled differences, NP calculation, and disallowance under Section 40(a)(ia). The assessee argued that the appeal should be dismissed due to low tax effect.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal considering the low tax effect as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI P. K. KEDIA & SHRI MAHAVIR PRASAD

For Appellant: Shri Arvind N Sontakke, Sr. D.R

PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. This appeal by the Revenue is directed against the order of the Ld. CIT((A), Jamnagar dated 08.09.2015 pertaining to A.Y. 2012-13, on the following grounds:

ITA No. 600/RJT/2015 2 . A.Y. 2012-13 1. Whether on facts and the circumstances of the case, the ld. CIT(A) was justified in holding that the difference of Rs. 27,54,445/- was duly reconcile by the assessee and hence deleting the addition of Rs. 27,54,445/-.

2.

Whether on facts and the circumstances of the case and in law, the ld. CIT(A) was justified in deleting the addition made of Rs. 7,35,214/- on account of N.P. calculated @ 5% of total turnover of the assessee.

3.

Whether on facts and the circumstances of the case, the ld. CIT(A) was justified in deleting the addition made u/s. 40(a)(ia) of the I.T. Act, 1961 on account of non-submission of corroborative evidence of Rs. 6,69,741/- and Rs. 40,800/-.

4.

On the basis of the facts and circumstances of the case, the ld. CIT(A) ought to have upheld the order of the Assessing Officer.

2.

At the outset, the ld. Counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No. 3 of 2018 dated 11.07.2018. Ld. Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

3.

We have heard both the parties and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No. 03/2015 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 11th July 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20 lacs. The Board has provided exceptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under

ITA No. 600/RJT/2015 3 . A.Y. 2012-13 challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall within the exception clause and the tax is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

4.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in Open Court on 13 - 08- 2018

Sd/- Sd/- (P. K. KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 13 /08/2018 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad

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