THE DCIT, CIRCLE-1(1)(1), AHMEDABAD vs. ADANI WILMAR LTD., AHMEDABAD

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ITA 534/AHD/2020Status: DisposedITAT Ahmedabad19 January 2022AY 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 held that the Revenue's appeal was not maintainable due to the CBDT circular on monetary limits. The assessee's cross-objection was dismissed as not pressed.

What were the facts?

The Revenue filed an appeal against the deletion of disallowance on exchange difference. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable based on CBDT circulars regarding monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR & SHRI WASEEM AHMED, ACCOUNTANT MEMEBR

For Appellant: Shri Dhrunal Shah & Shri, Shri Purushottam Kumar, Sr

ORDER PER MAHAVIR PRASAD, JM:

The captioned appeal and Cross Objection have been filed at the instance of the Revenue and assessee against the order of the Commissioner of Income Tax (Appeals)-1, Ahmedabad (‘CIT(A)’ in short)

A/w. CO No. 10/Ahd/21 (M/s. Adani Wilmar Limited) AY 2012-13 - 2 - vide Appeal No. CIT(A)-1, Ahmedabad/10577/ 2019-20, dated 25.08.2020 arising out of assessment order dated 21.12.2019 passed by the Assessing Officer (AO) under s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (the Act) concerning AY 2012-13.

2.

The grievances, in Revenue’s appeal and assessee’s Cross Objection, raised being common, both the cases were heard together and disposed of by the common order.

3.

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

“1 The ld. CIT(A) has erred in law and on facts in deleting the disallowance of Rs.1,50,05,250/- on account of exchange difference on foreign currency loan.”

4.

At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. It is inter alia noticed that the CBDT vide Instruction No. F. No. 279/Misc/M-93/2018-ITJ dt. 20/08/2019 has observed that Circular No.17/2019 dated 08/08/2019 relating to enhancement of monetary limits is also applicable to all pending appeals. As per aforesaid Circular read with instruction, 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 stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

A/w. CO No. 10/Ahd/21 (M/s. Adani Wilmar Limited) AY 2012-13 - 3 - 5. The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, 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.

6.

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

7.

The Ld.AR for the assessee at the time of hearing stated that assessee does not want to press the cross objection. The Cross Objection is accordingly dismissed as not pressed.

8.

In the combined result, the appeal of the Revenue is dismissed, whereas assessee’s Cross Objection is dismissed as not pressed.

This Order pronounced in Open Court on 19/01/2022

Sd/- Sd/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 19/01/2022 True Copy S.K.SINHA 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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