THE ADDL. CIT., RANGE-5, AHMEDABAD vs. M/S. PMC PROJECT (INDA) PVT.LTD., AHMEDABAD

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ITA 3151/AHD/2015Status: DisposedITAT Ahmedabad13 December 2017AY 2011-122 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as the tax effect was below the limit prescribed by the CBDT Circular. The case did not fall under any of the exemption clauses provided in the circular.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting disallowances and additions made by the Assessing Officer. The assessee contended that the appeal should be dismissed due to low tax effect as per CBDT Circular No. 21 of 2015.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by CBDT Circular No. 21 of 2015.

Which sections of the Income-tax Act were involved?

Section 14A,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH, AHMEDABAD

ITA No. 3151/Ahd/2015 ACIT Vs. PMC Projects Ind Pvt Ltd Assessment Year : 2011-12 Page 1 of 2

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH, AHMEDABAD [Coram: Pramod Kumar AM and S S Godara JM] ITA No. 3151/Ahd/2015 Assessment Year: 2011-12 Add. CIT, .......…………......Appellant Range-5, Ahmedabad Vs. PMC Projects India Pvt Ltd .......................Respondent 4th Floor, Infrastructure House, Beside Adani House, Mithakhali Sex Roads, Navrangpura, Ahmedabad-380 015

Appearances by: Prasoon Kabra for the Appellant Ira Kapoor for the Respondent Date of concluding the hearing : 13.12.2017 Date of pronouncing the order : 13.12.2017

O R D E R Per Pramod Kumar AM:

1.

This appeal, filed by the Assessing Officer, is directed against the order dated 18th August 2015 passed by the CIT(A)-9, Ahmedabad, in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2011-12.

2.

The grievances of the Assessing Officer are as follows:- “1. The ld. CIT(A) has erred in law and on facts in deleting the disallowance of Rs.12,32,489/- made u/s 14A of the Act. 2. The ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.16,07,998/- out of Rs.19,24,698/- made on account of business promotion expenditure. 3. The ld. CIT(A) has erred in law and on facts in treating expenditure on account of purchase of laptop for gift of Rs.1,16,700/- as capital expenditure instead of treating the same as non-business expenditure as held by the AO.” 3. At the outset, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the CBDT Circular No.21 of 2015 dated 10.12.2015. she has also submitted that in

ITA No. 3151/Ahd/2015 ACIT Vs. PMC Projects Ind Pvt Ltd Assessment Year : 2011-12 Page 2 of 2

the present case the tax effect is Rs.9,13,770/- which is below the prescribed limit of Rs.10 lacs and she has placed on record the working for the same. The ld. Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular.

4.

We have heard the rival submissions and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of CBDT Circular No. 21/2015 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 10th December 2015, vide which it has been provided that if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 10 lacs, then that order would not be challenged before the Tribunal in further appeal. The Board has provided exemptions at clause (8) of the Instructions wherein it has been provided that these instructions will not be applicable, if vires of any provisions has been quashed by impugned order or addition was made on some audit objections or the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall within the exemption clause and the tax is less than Rs.10 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

5.

In the result, the appeal of the Revenue is dismissed. Pronounced in the open court today on the 13th day of December, 2017.

Sd/- Sd/-

S S Godara Pramod Kumar (Judicial Member) (Accountant Member) *bt Ahmedabad, the 13th day of December, 2017

Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order

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