Income Tax Appellate Tribunal - Ahmedabad
The Ito, Ward-4(1),, Ahmedabad vs G-2 International Exports Ltd. ( Now ... on 1 August, 2018
ITA No.1907/Ahd/2015
ITO vs. Vaibhav Laxmi International Ltd.,
Assessment Year: 2010-11
Page 1 of 2
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "D" BENCH, AHMEDABAD
[Coram: Pramod Kumar AM and Madhumita Roy JM]
ITA No.1907/Ahd/2015
Assessment Year: 2010-11
Income Tax Officer
Ward - 4(1)(4), Ahmedabad. ..............................Appellant
Vs.
Vaibhav Laxmi International Ltd., ...........................Respondent
252, New Cloth Market,
Ahmedabad.
[PAN : AABCA 6690 G]
Appearances by:
Apoorva Bharadwaj for the Appellant
None for the Respondent
Date of concluding the hearing : 25.07.2018
Date of pronouncing the order : 01.08.2018
O R D E R
Per Pramod Kumar, AM:
1. By way of this appeal, the Assessing Officer has challenged correctness of the order dated 13.02.2015, passed by the learned CIT(A)-2, Ahmedabad for the assessment year 2010-11, on the following grounds:
"1. Whether the Ld. CIT(A) is right in law and on facts in deleting disallowance u/s.40(a)(i) on account of commission of Rs.42,67,271/- paid to agents outside India without complying the provisions of Section 195 of the Act.
2. Whether the Ld. CIT(A) is right in law and on facts in deleting the disallowance u/s.14A r.w. Rule 8D of Rs.14,75,170/-
3. On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer.
4. It is, therefore, prayed that the order of the Ld. CIT(A) may be set aside and that of the order of the Assessing Officer be restored."
2. We have, at the outset, noticed that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No.3 of 2018 dated 11.07.2018. The learned Departmental Representative fairly ITA No.1907/Ahd/2015 ITO vs. Vaibhav Laxmi International Ltd., Assessment Year: 2010-11 Page 2 of 2 admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.
3. We have heard the learned Departmental Representative and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No.3/2018 in F.No.279/Misc.142/2007-ITJ (Pt) dated 11th July, 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)'s order is below Rs. 20 Lacs. The Board has provided exemptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board's order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where 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 effect is less than Rs.20 Lacs. Therefore, the present appeal is not maintainable and hence dismissed.
4. In the result, the appeal of the Revenue is dismissed. Pronounced in the open court today on the 1st August, 2018
-
Sd/- Sd/-
Madhumita Roy Pramod Kumar
(Judicial Member) (Accountant Member)
Ahmedabad, the 1st day of August, 2018
PBN/*
Copies to: (1) The appellant
(2) The respondent
(3) Commissioner of Income Tax
(4) CIT(A)
(5) Departmental Representative
(6) Guard File
By order
TRUE COPY
Assistant Registrar
Income Tax Appellate Tribunal
Ahmedabad benches, Ahmedabad