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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI D.KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM
आदेश / ORDER
PER D. KARUNAKARA RAO, AM
This appeal is filed by the Revenue against the order of CIT(A)-1, Nashik, dated 12-05-2017 for the A.Y. 2014-15.
Grounds raised by the Revenue are extracted below :
“1. Whether the facts and in the circumstance of the case, the Ld.CIT(A)-1, Nashik was justified in allowing exemption from Income-Tax to the assessee society u/s.80P(2)(a)(vi) of the Income Tax Act, 1961 even
2 ITA No.1808/PUN/2017 Nashik District Labour Society Co-op. Federation Ltd.,
though the assessee society is a federation of primary societies which only supervises and co-ordinates the affairs of its members and cannot be said to be engaged in the collective disposal of the labour of its members within the meaning of section 80P(2)(a)(vi) of the I.T. Act, 1961.
Whether in the facts and in the circumstances of the case, the Ld.CIT(A)-1, Nashik was justified in holding that the assessee was engaged in the collective disposal of the labour of its members when there is no individual who is member of the Assessee Society.”
Briefly stated relevant facts includes that the assessee is a
Cooperative society and filed its return of income declaring total income
at Nil after claiming deduction under Chapter-IVA. In the assessment,
AO disallowed Rs.1,29,58,975/- u/s.80P(2)(a)(vi) of the Act. AO also
made addition of Rs.6,81,493/- on account of expenditure incurred by
the assessee in respect of Prawas Sancalak, Prasiddhi and Printing and
Stationary. Eventually, the AO assessed the income of the assessee at
Rs.36,55,180/- as against Nil income returned by the assessee. In the
First Appellate proceedings, the CIT(A) deleted both the additions made
by the AO relying on the decision of Pune Bench of the Tribunal in the
assessee’s own case for the A.Yrs. 2006-07, 2008-09 and 2009-10.
Aggrieved with the order of CIT(A), the Revenue is in appeal before us
with the grounds referred above.
At the outset, Ld. AR for the assessee submitted that the appeal
filed by the Department is liable to be dismissed on account of low tax
effect. The Ld. AR pointed that as per CBDT Circular No.3/2018 dated
11th July, 2018, the monetary limit for filing of appeal by the Department
before the Tribunal is Rs.20 Lakhs, therefore, the appeal filed by the
Department is not maintainable.
On the other hand, the Ld. DR for the Revenue defended the
assessment order and prayed for reversing the findings of the CIT(A).
3 ITA No.1808/PUN/2017 Nashik District Labour Society Co-op. Federation Ltd.,
However, the Ld. DR fairly admitted that the tax effect in the present appeal is less than Rs.20 Lakhs.
Both sides heard. On going through the facts of the case and the orders of the Revenue, the total tax effect involved in the present appeal is undisputedly less than Rs. 20 Lakhs. The CBDT circular No.3/2018 dated 11th July, 2018 raised the monetary limit of tax effect for filing of appeal by the Department before the Tribunal to Rs.20 Lakhs. The circular applies to the pending appeals of the Department before the Tribunal too. Thus, in view of the CBDT circular, we are of the opinion that the present appeal of the Revenue is liable to be dismissed on account of low tax effect without going into the merits of the case.
In the result, the appeal of the Revenue is dismissed.
Order pronounced on 21st day of August, 2018. Sd/- Sd/-
(िवकास अव#थी /VIKAS AWASTHY) (डी. क�णाकरा राव/D. KARUNAKARA RAO) �ाियक सद�/JUDICIAL MEMBER लेखा सद�/ACCOUNTANT MEMBER पुणे / Pune; िदनांक / Dated : 21st August, 2018. Satish
आदेश की +ितिलिप अ-ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��थ� / The Respondent. 2. 3. The CIT (Appeals)-1, Nashik 4. The Pr. CIT-1, Nashik एक-सद�य सद�य सद�य” ब"च, सद�य िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “एक 5. एक एक पुणे / DR, ITAT, “SMC” Bench, Pune. गाड% फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER,
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune