ASSISTANT COMMISSIONER OF INCOME-TAX, BANGALORE vs. M/S PARRYS SUGAR INDUSTRIES LTD, BANGALORE

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ITA 1721/BANG/2016Status: DisposedITAT Bangalore29 July 2021AY 2012-133 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 in limine based on the CBDT Circular No. 17/2019, as the tax effect was less than Rs. 50 lakhs. Liberty was granted to move for recall if the tax effect exceeded the threshold or fell under exceptions.

What were the facts?

The revenue filed an appeal against the CIT(A)'s order deleting disallowances related to an advance not pertaining to business and disallowance under Section 14A. The aggregate amount in dispute was Rs. 1.42 crores.

What were the issues?

Whether the revenue's appeal is maintainable in light of the tax effect being below the threshold stipulated in the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C’’BENCH: BANGALORE

Before: SHRI GEORGE GEORGE K. & SHRI B.R. BASKARAN

For Appellant: Shri Pradeep Kumar, D.R
For Respondent: Shri Vikram Vijayaraghavan, A.R
Hearing: 29.07.2021Pronounced: 29.07.2021

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

1.

The revenue has filed this appeal challenging the order dated 14.7.2016 passed by Ld. CIT(A)-5, Bengaluru and it relates to assessment year 2012-13. The revenue is aggrieved by the decision of Ld. CIT(A) in deleting the following disallowances made by the A.O. 1. Disallowance of cost attributable to advance not pertaining to business - Rs.1,24,00,000/- 2. Disallowance made u/s 14A of the Act – Rs.18,14,000/-

M/s. Parrys Sugar Industries Ltd., Bangalore

Page 2 of 3 2. At the outset, the Ld. A.R. submitted that the aggregate amount in dispute is Rs.1.42 crores and the tax effect thereon is less than Rs.50 lakhs. Accordingly, the Ld. A.R. submitted that the revenue is precluded from pursuing this appeal as per Circular No.17/2019 dated 8.8.2019 issued by CBDT. Accordingly, he submitted that the appeal filed by the revenue requires to be dismissed in limine.

3.

We heard Ld. D.R. and perused the record. From the submissions made by Ld. A.R., we notice that the tax effect involved in the additions disputed by the revenue is less than Rs.50 lakhs. Accordingly, following the CBDT circular (referred above), we dismiss the appeal of the revenue in limine. However, the revenue is given liberty to move appropriate application for recall of this order, if it is found that the tax effect involved is more than Rs.50 lakhs or if the issues contested by the revenue fall under any of the exceptions given in the circular.

4.

In the result, the appeal filed by the revenue is dismissed. Order pronounced in the open court on 29th July, 2021 Sd/- Sd/- (George George K.) (B.R. Baskaran) Judicial Member Accountant Member Bangalore, Dated 29th July, 2021. VG/SPS

M/s. Parrys Sugar Industries Ltd., Bangalore

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