THE ACIT, CIRCLE-5, AHMEDABAD vs. M/S. RJP INFRASTRUCTURE PVT. LTD., AHMEDABAD

PDF · subscribers
ITA 1802/AHD/2015Status: DisposedITAT Ahmedabad10 November 2017AY 2010-113 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, accepting the applicability of the CBDT circular. The Revenue was given the liberty to seek restoration if the circular was found inapplicable.

What were the facts?

The Revenue appealed the deletion of an addition of Rs. 15,45,021/- made on account of disallowance of interest. The assessee argued that the Revenue's appeal was hit by a CBDT circular regarding monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of CBDT circulars setting monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 36(1)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ D ” BENCH, AHMEDABAD

Before: SHRI S.S. GODARA & SHRI PRADIP KUMAR KEDIA

For Respondent: Shri Abhishek Jain, AR

आदेश / O R D E R PER PRADIP KUMAR KEDIA - AM: The captioned appeal by the Revenue is directed against the order of the Commissioner of Income Tax(Appeals)-9, Ahmedabad [CIT(A) in short] dated 09/03/2015 for the Assessment Year (AY) 2010-11.

2.

The grounds of appeal raised by the Revenue read as under:-

ITA No.1802/Ahd/2015 DCIT vs. M/s.RJP Infrastructure P.Ltd. Asst.Year – 2010-11 - 2 -

1) The CIT(A) has erred in law and on facts in deleting the addition of Rs.15,45,021/- on account of disallowance of interest u/s.36(1)(iii) of the Act and not considering the findings of AO that interest bearing funds were diverted as interest free advances given by the assessee to its related concern. 2) On the facts and in the circumstances of the case, the Ld.Commissioner of Income tax (A) ought to have upheld the order of the Assessing Officer.

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that appeal filed by the Revenue is hit by CBDT Circular No.21 of 2015 dated 10/12/2015. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is Rs.10 lakhs. In the instant case, the tax effect on the disputed issue raised by the Revenue is stated to be less Rs.10 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

4.

The Ld.DR for the Revenue fairly admitted the applicability of the CBDT Circular No.21 of 2015. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

ITA No.1802/Ahd/2015 DCIT vs. M/s.RJP Infrastructure P.Ltd. Asst.Year – 2010-11 - 3 - 5. In the result, the appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 10/ 11 /2017

d/- Sd/- (एस.एस.गोदारा) (�द�प कुमार के�डया) �या�यक सद�य लेखा सद�य ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 10/ 11 /2017 ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-9, Ahmedabad �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation .. 06.11.17( covered matter - tax effect below 10 lacs) 2. Date on which the typed draft is placed before the Dictating Member …06.11.17 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….10.11.17 7. Date on which the file goes to the Bench Clerk…………………10.1.17 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………

More judgments on Section 36(1)(iii)

All 3,665 judgments and leading authorities on Section 36(1)(iii) →

Recent GST High Court judgments

Search GST case law →