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Income Tax Appellate Tribunal, “SMC” BENCH, PUNE
Before: SHRI ANIL CHATURVEDI, AM & SHRI VIKAS AWASTHY, JM
आदेश / ORDER
PER VIKAS AWASTHY, JM :
The appeal has been filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-I, Nashik dated 08-06-2016 for the assessment year 2008-09.
2 ITA No. 1920/PUN/2016, A.Y. 2008-09
Shri Sunil Ganoo appearing on behalf of the assessee submitted at the outset that the appeal of the Revenue is liable to be dismissed on account of low tax effect in terms of CBDT circular No. 21/2015, dated 10-12-2015.
Shri Mukesh Jha representing the Department fairly admitted that in the present appeal by the Department, tax effect is less than `10 lakhs.
Both sides heard. The Revenue is in appeal against the order of Commissioner of Income Tax (Appeals) in allowing assessee’s claim of License Fee Rs.4,70,981/- paid to Excise Department as revenue expenditure. In original assessment proceedings u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), the claim of assessee was accepted. The assessment was-reopened to make disallowance holding the expenditure to be capital. The Commissioner of Income Tax (Appeals) held the re-opening of assessment as bad in law and invalid. Hence, the present appeal by the Department.
As per demand notice issued to the assessee, the tax effect involved in appeal is Rs.62,868/- which is far less than the monetary limit prescribed by CBDT for filing of appeal by the Department before the Tribunal. The CBDT vide circular No. 21/2015, dated 10-12-2015 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to `10 lakhs. Thus, in view of CBDT circular, the present appeal of the Revenue is liable to be dismissed on account of low tax effect.
3 ITA No. 1920/PUN/2016, A.Y. 2008-09
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court at the time of hearing on Monday, the 19th day of February, 2018.
Sd/- Sd/- (अननऱ चतुवेदी / Anil Chaturvedi) (ववकास अवस्थी / Vikas Awasthy) ऱेखा सदस्य / ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 19th February, 2018 RK आदेश की प्रनतलऱवऩ अग्रेवर्त / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. आयकर आयुक्त (अऩीऱ) / The CIT(A)-1, Nashik 3. 4. The Pr. Commissioner of Income Tax-1, Nashik ववभागीय प्रनतननधध, आयकर अऩीऱीय अधधकरण एक सदस्य मामऱा बेंच, 5. ऩुणे / DR, ITAT, “SMC” Bench, Pune. गार्ड फ़ाइऱ / Guard File. 6. //सत्यावऩत प्रनत // True Copy// आदेशानुसार / BY ORDER,
ननजी सधचव / Private Secretary, आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune