THE DCIT, CIRCLE-1(1)(2), AHMEDABAD vs. M/S. TRENCHLESS ENGINEERING PVT. LTD(FORMERLY M/S. CORRTECH TRECHLESS P. LTD.), AHMEDABAD

ITA 1765/AHD/2019Status: DisposedITAT Ahmedabad23 March 2022AY 2013-142 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 as it was hit by a CBDT circular regarding monetary limits for filing appeals. The tax effect on the disputed issues did not exceed the revised threshold.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order allowing foreign tax credit. The CIT(A) had allowed a higher foreign tax credit than what was initially allowed by the Assessing Officer.

What were the issues?

Whether the Revenue's appeal is maintainable based on the tax effect and CBDT circulars. The dispute also involved the allowability of foreign tax credit.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI PRAMOD M. JAGTAP

Hearing: 23/03/2022

आदेश/O R D E R

PER PRAMOD M. JAGTAP, VICE PRESIDENT:

The appeal filed by the Revenue for A.Y. 2013-14, arise from order of the CIT(A)-1, Ahmedabad dated 12.09.2019, in proceedings under Section 143(3) of the Income Tax Act, 1961; in short “the Act”.

The ground of appeal raised by the Revenue reads as under:-

“1. The CIT(A) has erred in law and in facts in directing the AO to allow foreign tax credit of Rs. 1,18,39,927/- as against Rs. 72,44,216/- allowed by the AO. 2. The CIT(A) has failed to note that the assessee has submitted before AO that profits from Bangladesh operations was Rs. 3,73,31,196/- whereas it was changed as Rs. 12,97,90,583/- before the [DCIT vs. M/s. Trenchless Engineering Pvt. Ltd.] A.Y. 2013-14 2 CIT(A) and that the AO has adopted the most reasonable and logical method of apportioning the respective income relative to the turnover.

2. It is, therefore, prayed that the order of ld. CIT(A) may be set aside and that of the Assessing Officer be restored.”

At the time of hearing, the Ld. D.R. fairly admitted that this appeal filed by the Revenue is hit by CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine. Accordingly, this appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

In the result, the appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 23/03/2022

Sd/- Sd/- (Ms. MADHUMITA ROY) (PRAMOD M. JAGTAP) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad: Dated 23/03/2022 TRUE COPY TANMAY, Sr. PS आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4.आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध,आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण,अहमदाबाद।

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