DCIT, CIRCLE, PARWANOO vs. M/ IND SPHINX PRECISION LTD., PARWANOO

PER DIVA SINGH

The present appeal has been filed by the Revenue assailing the correctness of the order dated 29.09.2017 of CIT (A) Shimla pertaining to the 2012-13 assessment year on the following grounds : 1. On the facts and in the circumstances, the Ld. CIT(A) has erred in deleting the addition of Rs. 25,81,994/- made by A.O. account of foreign currency fluctuation income, which was not eligible for deduction u/s 80-IC in view of the judgment in the case of M/s Liberty India Ltd. Vs. CIT(317 ITR 218) as the assessee had failed to produce any evidence to substantiate that the same relates to business transaction on revenue account. 2. On facts and in the circumstances, the Ld. CIT(A) has further erred in deleting the disallowance made by A.O. u/s 14A amounting to Rs. 5,84,013/- by ignoring the fact that assessee has not declared any taxable dividend income. 2. At the time of hearing, an application was placed on behalf of the assessee stating that the present appeal has been filed by the Revenue wherein the tax effect was less than Rs. 20 lacs and thus, the appeal having been filed in violation of CBDT Circular No. 3/2018 dated 11.07.2018 may be dismissed in terms of the above circular. 3. The ld. Sr.DR on going through the material available on record agreed that the submissions of the assessee on facts are correct. 4. We have heard the rival submissions and perused the material on record. In the light of the submissions of the parties before the Bench, the appeal of the Revenue is dismissed on the grounds of low tax effect in

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terms of the aforesaid circular of the CBDT by which the Tax Authorities are bound. The appeal of the Revenue, accordingly, is dismissed as not pressed. 5. In the result, appeal of the Revenue is dismissed. Said order was pronounced in the Open Court at the time of hearing itself. Order pronounced in the Open Court on 03.10. 2018.