ACIT, BHUBANESWAR vs. TATWA TECHNOLOGIES PVT. LTD., BHUBANESWAR

ITA 224/CTK/2015Status: DisposedITAT Cuttack11 July 2017AY 2007-083 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable. This was based on the admitted tax effect of the appeal being below the revised monetary limit for filing appeals to the Tribunal as per CBDT circular.

What were the facts?

The Revenue appealed against the CIT(A)'s order which granted partial relief to the assessee on a disallowance of share capital. The assessee is engaged in software development and had declared a certain income, which was later revised by the Assessing Officer.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to the monetary limit prescribed by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK

Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE

For Respondent: Shri D.K.Pradhan, DR

Hearing: 11/07

Per N.S.Saini, AM

This is an appeal filed by the Revenue against the order of the ld

CIT(A)-1, Bhubaneswar, dated 24.2.2015, for the assessment year 2007-

08.

When the case was called for hearing, none appeared on behalf of

the respondent-assessee despite issue of notice of hearing dated 8.6.2017.

Hence, we proceed to dispose of the appeal of the revenue after hearing ld

D.R. and on the basis of materials available on record.

2 ITA No. 224 /CT K/ 2015 Asse ssment Year :20 07- 08

Brief facts of the case are that the assessee is engaged in the

business of software development. It filed the return of income on

8.11.2007 declaring total income of Rs.7,50,320/-. The case was selected

for scrutiny and assessment was completed u/s.143(3) of the Act on

31.12.2009 determining the total income at Rs.53,19,430/-.

Being aggrieved by the order of the Assessing Officer, the assessee

has preferred appeal before the CIT(A), who allowed partial relief of

Rs.22,87,734/- out of total disallowance of Rs.40 lakhs on account of share

capital.

Aggrieved by the partial relief of Rs.22,87,734/- on account of

disallowance of share capital, the revenue is in appeal before us.

After hearing ld D.R. and perusing the order of the CIT(A), we find

that the CIT(A) has allowed relief of Rs.22,87,734/- out of addition of Rs.40

lakhs on account of share capital and sustained the disallowance of

Rs.21,14,870/-, the tax effect of which comes to Rs.6,34,460/-. Before us,

ld D.R. admitted that that the tax effect in the appeal of the revenue is

Rs.6,34,460/- and hence, in view of the CBDT circular No. No.21/2015

dated 10.12.2015 revising the monetary limit for filing appeal to the

Tribunal to Rs.10 lakhs, the appeal filed by the revenue is not maintainable

and liable to be dismissed in limine. Therefore, we dismiss the appeal of

the revenue in limine.

3 ITA No. 224 /CT K/ 2015 Asse ssment Year :20 07- 08

In the result, appeal filed by the revenue is dismissed.

Order pronounced in the open court on 11 /07/2017 in the presence of parties. Sd/- sd/- (Pavan Kumar Gadale) (N.S Saini) JUDICIALMEMBER ACCOUNTANT MEMBER Cuttack; Dated 11 /07/2017 B.K.Parida, SPS Copy of the Order forwarded to : 1. The appellant: ACIT, Circle 1(2), Bhubaneswar 2. The Respondent; Tatwa Technologies Pvt Ltd., Plot No.6, 2nd floor, Unit-III, Kharvel Nagar, Bhubaneswar 3. The CIT(A)-I, Bhubaneswar 4. The Pr. CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack BY ORDER, 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack

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