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Income Tax Appellate Tribunal, “A” BENCH, PUNE
Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM
आदेश / ORDER
PER VIKAS AWASTHY, JM
This appeal by the Revenue is directed against the order of
Commissioner of Income Tax (Appeals)-1, Aurangabad dated 01.01.2016 for
the assessment year 2011-12. The assessee has filed cross objections in the
appeal filed by Revenue.
The Revenue in appeal has assailed the findings of Commissioner of
Income Tax (Appeals) by raising following grounds:
“1. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the addition made on the issue of depreciation claimed by the company on cars registered in the name of the directors, in view of decision of Hon'ble ITAT, Mumbai dated 19.04.2013. 2. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the addition made u/s.40A(2)(b) and not considering the detailed remand report in that regard. 3. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the addition made on account of various expenses, and not considering the detailed remand report in that regard. 4. On the facts and in the circumstances of the case, the order of CIT(A), Aurangabad be quashed and that the order of the AO be restored. 5. On the facts and circumstances the appellant craves leave to add, amend or alter any grounds of appeal.”
Shri Sudhendu Das representing the Department submitted at the
outset that tax effect involved in the present appeal is less than Rs.20 Lakhs.
The ld. DR submitted that the aggregate of the additions deleted by the
Commissioner of Income Tax (Appeals) is Rs.49,34,502/-. The ld. DR
furnished a copy of letter dated 10.09.2018 from Assistant Commissioner of
3 ITA No.707/PUN/2016 Co. No.15/PUN/2018 A.Y.2011-12
Income Tax, Circle-1, Aurangabad stating that overall tax effect involved in the
appeal is Rs.16,39,118/-.
Shri Sunil Ganoo appearing on behalf of the assessee concurred with
the submissions of ld. DR and prayed that in view of CBDT Circular No.
3/2018, dated 11.07.2018, appeal of the Revenue is liable to be dismissed.
The ld. AR also furnished working of tax effect involved in the appeal.
We have heard the submissions made by representatives of rival sides
and have perused the orders of Authorities below. The Revenue in appeal has
assailed the findings of Commissioner of Income Tax (Appeals) in deleting the
following additions/disallowances by Assessing Officer:
- Depreciation on cars - Addition u/s.40A(2)(b) of the Act. - Amount voluntarily offered by assessee to cover up discrepancies
The aggregate of above additions deleted by the Commissioner of Income
Tax(Appeals) according to both the sides is Rs.49,34,502/-. Undisputedly, the
tax effect on the above additions deleted by the Commissioner of Income Tax
(Appeals) is less than the monetary limit prescribed by the recent CBDT
Circular for filing of appeals before the Tribunal by the Department. The CBDT
vide Circular No.3/2018, dated 11.07.2018 has raised the monetary limit of
tax effect for filing of appeals by the Department before the Tribunal to Rs.20
lakhs. The Circular applies to the appeals to be filed by the Department in
future as well as the appeals pending before the Tribunal. Without going into
merit of the issues raised in the appeal, in view of the CBDT Circular the
present appeal of the Revenue is dismissed on account of low tax effect.
4 ITA No.707/PUN/2016 Co. No.15/PUN/2018 A.Y.2011-12
Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular (supra.). Accordingly, appeal of the Revenue is dismissed.
Since, appeal of the Revenue is dismissed, the cross objection filed by the assessee becomes infructuous and hence, dismissed as such.
In the result, appeal of the Revenue and cross objection filed by assessee is dismissed.
Order pronounced on Wednesday, the 12th day of September, 2018.
Sd/- Sd/- (डी. क�णाकरा राव/D. KARUNAKARA RAO) (�वकास अव�थी /VIKAS AWASTHY) लेखा सद�य/ACCOUNTANT MEMBER �या�यक सद�य/JUDICIAL MEMBER
पुणे / Pune; �दनांक / Dated : 12th September, 2018 SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :
अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT (Appeals)-1, Aurangabad. 4. The Pr. CIT-1, Aurangabad. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “ए” ब�च, 5. पुणे / DR, ITAT, “A” Bench, Pune. गाड� फ़ाइल / Guard File. 6.
// True Copy // आदेशानुसार / BY ORDER,
�नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.