Income Tax Appellate Tribunal - Ahmedabad
The Dcit, Circle-1,, Ahmedabad vs M/S. Adani Wilmar Ltd,, Ahmedabad on 1 February, 2018
आयकर अपील
य अ धकरण, अहमदाबाद यायपीठ ।
IN THE INCOME TAX APPELLATE TRIBUNAL,
"C" BENCH, AHMEDABAD
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
AND
SHRI AMARJIT SINGH, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA.No.1530/Ahd/2015
With
CO No.120/Ahd/2015
नधा रण वष / Asstt. Year: 2010-11
DCIT, Cir.1(1) M/s.Adani Wilmar Ltd.
Ahmedabad. Vs "Fortune House"
Nr. Adani House
Mithakhali Cross Raods
Navrangpura
Ahmedabad 380 009.
PAN : AABCA 8056 G
अपीलाथ!/ (Appellant) "#यथ!/ (Respondent)
Revenue by : Shri Prasoon Kabra, Sr.DR
Assessee by : Shri P.M.Mehta with
Shri G.M. Thakkar, ARs.
सन
ु वाई क तार ख/ Dateof Hearing : 24/01/2018
घोषणा क तार ख / Date of Pronouncement: 01 /02/2018
आदे श/O R D E R
PER RAJPAL YADAV, JUDICIAL MEMBER:
Revenue is in appeal before the Tribunal against order of ld.CIT(A)-6, Ahmedabad dated 24.3.2015 passed for the Asstt.Year 2010-11.
2. Revenue has raised mainly two grounds of appeal, by which, it has challenged action of the ld.CIT(A) in deleting adjustment of disallowance made u/s.14A r.w.s. 8D while computing book profit u/s.115JB of the Act and that of deleting addition of rs.4201/- being unutilized CENVAT credit.
ITA No.1530/Ahd/2015 with CO 23. At the very outset, the ld.counsel for the assessee has drawn our attention towards recent CBDT Circular restricting filing of appeal by the Revenue before the Tribunal where tax effect is below Rs.10 lakhs. He pointed out that tax effect in the present case is below monetary limit prescribed by the CBDT, and therefore, appeal of the Revenue is liable to dismissed at the threshold. The ld.counsel for the assessee filed a calculation showing low tax effect. It reads as under:
1. Disallowance made u/s14A r.w.s. Rs.53,34,241/-
8D while calculating the book profit u/s.115JB of the Act Tax u/s.115JB @ 15% [A] Rs.8,00,136/-
2. Addition of unutilized CENVAT 4,201/-
credit u/s.145A of the Act
Tax on disputed addition @30% [B] Rs.1,260/-
Total Tax on disputed additions (A+B) Rs.8,25,438/-
including cess @3%
When the Bench pointed out to the ld.DR about maintainability Revenue's appeal before the Tribunal in view of recent CBDT circular restricting filing of appeal before the Tribunal where tax effect is below Rs.10 lakhs, the ld.DR was unable to dispute the same, but left to the Tribunal to decide the appeal in accordance with law.
4. We have heard ld.DR and gone through the impugned orders. We find that appeal of the Revenue, which is filed on 23.5.2015 is hit by recent CBDT instruction no.21 of 2015 dated 10.12.2015 whereby the Board has prohibited its subordinate authorities from filing of the appeal before the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.10 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, tax effect on the ITA No.1530/Ahd/2015 with CO 3 additions deleted by the ld.CIT(A) and contested by the Revenue, would be less than Rs.10 lakhs. Therefore, the present appeal deserves to be dismissed as being filed in violation of the above CBDT Instruction. It is thus dismissed.
5. It is further observed that on re-verification at the end of the AO, it came to the notice that tax effect is more or it falls within the ambit of exception provided in the Instruction, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within limitation prescribed under the law.
6. So far as CO of the assessee is concerned, the same is not pressed by the assessee for adjudication, accordingly, the same is dismissed for want of prosecution.
7. In the result, appeal of the Revenue is dismissed due to low tax effect, and Cross Objection of the assessee is dismissed for want of prosecution. Order pronounced in the Court on 1st February, 2018 at Ahmedabad.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER