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[Cites 1, Cited by 1]

Income Tax Appellate Tribunal - Ahmedabad

Dy.Cit.,Cent.Circle-2(4),, ... vs Sekhani Fabric Mills Pvt.Ltd.,, ... on 25 April, 2017

         IN THE INCOME TAX APPELLATE TRIBUNAL
            AHMEDABAD "D" BENCH, AHMEDABAD

        सव  ी एन.के. 
ब लैया, लेखा सद य एवं महावीर  साद,  या यक सद य के सम  ।
     BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER And
          SHRI MAHAVIR PRASAD, JUDICIAL MEMBER

                    आयकर अपील सं./I.T.A.   No.589/Ahd/2013
                   (  नधा रण वष  / Assessment Years : 2010-11)


      Deputy Commissioner of          V/S    M/s. Sekhani Fabric Mills
      Income-tax, Circle - 2(4),                     Pvt. Ltd.
           Ahmedabad                          62, New Cloth Market,
                                             Raipur Gate, Sarangpur,
                                                    Ahmedabad
     (Appellant)                                   (Respondent)


                           PAN: AACCS 1080 K


       Appellant by        : Shri Surendra Kumar, CIT DR
       Respondent by       : Shri S.N. Soparkar & Parin Shah, AR

                                 (आदे श)/ORDER

Date of hearing               : 05/04/2017
Date of Pronouncement         : 25/04/2017

PER MAHAVIR PRASAD, JUDICIAL MEMBER:

1. This appeal by the Revenue is preferred against the order of Ld. CIT(A)-III, Ahmedabad dated 28/12/2012 pertaining to A.Y. 2010-11.

2. The substantive grievance of the Revenue reads as under:-

2 ITA No. 589/Ahd/2013
.                                                                              A.Y. 2010-11
             i.     The learned CIT(A) has erred in law and on facts in deleting the addition

of Rs.44 lakh, made on account of unexplained cash credit u/s.68 of the IT Act.

ii. The learned CIT(A) has erred in law and in facts in deleting the addition of Rs.4 lakh, made on account of unrecorded cash payment. iii. The learned CIT(A) has erred in law and on facts in deleting the addition of Rs.3,96,492/-, made on account of unrecorded cash payment. iv. The learned CIT(A) has erred in law and on facts in restricting the addition to 55,188/- out of total addition of Rs.15,97,321/-, made on account of stock difference.

v. On the facts and in the circumstances of the case, the learned CIT(A) ought to have upheld the order of the Assessing Officer on the above points.

3. At the outset, the ld. Counsel for the assessee submitted that the 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. 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 both the parties 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.

3 ITA No. 589/Ahd/2013

. A.Y. 2010-11

5. In the result, the appeal filed by the Revenue is dismissed in limine.



        Order pronounced in Open Court on                                   25/04/2017




               Sd/-                                                         Sd/-/-
          एन.के. 
ब लैया                                              महावीर  साद
           (लेखा सद य)                                               ( या यक सद य)
  (N.K. BILLAIYA)                                              (MAHAVIR PRASAD)
ACCOUNTANT MEMBER                                               JUDICIAL MEMBER
Ahmedabad:   25/04/2017
Priti

Copy of the Order forwarded to:-
1.    The Appellant.
2.    The Respondent.
3.    The CIT (Appeals) -III, Ahmedabad.
4.    The CIT concerned.
5.    The DR., ITAT, Ahmedabad.
6.    Guard File.
                                                                    By ORDER



                                                               Deputy/Asstt.Registrar
                                                               ITAT, Ahmedabad
                                           True Copy