CHEMFERT TRADERS (BOMBAY) P.LTD,MUMBAI vs. ADDL CIT 1(1), MUMBAI

When the appeal was called for hearing, no one was present on behalf of the respondent assessee to represent the case. There is no application seeking adjournment either. Considering the nature of dispute, we proceed to dispose off the appeal ex–parte qua the 2 S.S. Oral Hygiene Products Pvt. Ltd.

On a perusal of record, it is noticed that the only effective ground raised in the present appeal is ground no.2, pertaining to the issue of addition made on disallowance of excise duty on closing stock of finished goods by invoking the provisions of section 145A of the Act. It is further noticed that the addition made on this account by the Assessing Officer in the earlier order is to the tune of ` 26,29,734. Undisputedly, while deciding the appeal of the assessee on the issue, the learned Commissioner (Appeals) has deleted this addition. Thus, the amount disputed by the Revenue in the present appeal is ` 26,29,734. When a query was raised to the learned Departmental Representative whether the tax effect on the aforesaid disputed amount is below the limit of ` 50 lakh, as per CBDT Circular no.17/ 2019, dated 8th August 2019, r/w CBDT Circular no.3/2018, dated 11th July 2018, the learned Departmental Representative fairly submitted that the tax effect is below the amount of ` 50 lakh as per the aforesaid CBDT circular. In view of the aforesaid facts, since the tax effect on the amount disputed in the present appeal is below the monetary limit of ` 50 lakh and none of the exceptions as provided under the aforesaid circular issued by the CBDT is applicable, the 3 S.S. Oral Hygiene Products Pvt. Ltd.

In the result, appeal is dismissed. Order pronounced through notice board under rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963, on 02.11.2020