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TMI Blog2024 (8) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... by Income Tax Appellate Tribunal, B Bench, Ahmedabad (for short 'the Tribunal') in Miscellaneous Application No. 128/Ahd/2021 in ITA No.132/Ahd/2019. 3. The brief facts of the case are as under. 3.1 The respondent - assessee filed return of income on 30th December, 2006 for A.Y. 2006-07 declaring total income at Rs. Nil. 3.2 The case was re-opened and order under Section 143 (3) read with Section 147 of the Income Tax Act, 1961 (for short 'the Act') was passed on 14th December, 2011, wherein tax was computed on the book profit of Rs. 13,07,83,251/-. 3.3 The respondent-assessee being aggrieved preferred appeal before the CIT (A). The appeal was allowed by CIT (A) by order dated 23rd July, 2012. 3.4 The Assessing Officer passed an order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port dated 30th January, 2019 where tax effect was calculated at Rs. 01,35,86,474/-. 3.10 The department-petitioner preferred appeal before the Tribunal being aggrieved by the order dated 28th November, 2018 passed by the CIT (A) order. The Tribunal by order dated 05th April, 2021 passed in ITA No. 132/Ahd/2019 dismissed the appeal of the Revenue in view of CBDT Circular/Instruction No. 17/2019 by holding that the tax effect being below the prescribed monetary limit and provision of Section 268A of the Act would apply. The Tribunal, however, stated in its order that "on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue's case falls within the ambit of exceptions provided in the Circular, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being accepted by the Department, the Revenue's case does not fall in the Exception provided in clause 10(c) of the CBDT Circular no.23 of 2019 requiring withdrawal of the appeal of the Department where tax effect fall below the threshold limit. In view of the same, MA filed by the Revenue merits no consideration, and is dismissed accordingly." 4. Being aggrieved, the petitioner has preferred this petition challenging the aforesaid impugned order dated 25th January, 2023 passed by the Tribunal rejecting the Miscellaneous Application. 5. Learned advocate Mr. Sanghani submitted that audit objections were raised on 12th May, 2014 i.e. after the order giving effect was passed by the Assessing Officer on 23rd August, 2012 determining the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he business of manufacturing of castor oil from castor seeds and trades in edible and non-edible oils. For the year under consideration, the appellant filed return of income dated 30/12/2006 wherein income was declared at NIL. Initially the case was not selected for scrutiny u/s 143 (3) of the Act, but thereafter the case was reopened u/s. 148 of the Act on the sole issue of the unabsorbed depreciation or business loss whichever is less for the purpose of MAT u/s.115JB is to be calculated on year to year basis and not on totality basis. The re-assessment order was passed making the additions accordingly. Aggrieved by the same, the appellant filed an appeal before CIT (A) and the appeal was fully allowed vide order dated 23/07/2012. While gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit on account of waiver of principal being a capital receipt cannot be treated an operating result of the appellant as held by the Hon'ble Mumbai ITAT in case of M/s. JSW Steel Limited, Vs. Assistant Commissioner of Income Tax (ITA No.923/Bang/2009) dated 13/01/2017 and the Hon'ble Rajkot ITAT in case of ACIT v/s M/s Ajanta Mfg. Ltd in ITA Nos. 263 & 264/Rjt/2013 dated 03/08/2017. In view of these facts, the AO is directed to delete the disallowance so made. This ground of appeal is thus allowed." 6.1 Being aggrieved by the aforesaid order of the CIT (A) allowing the appeal filed by the assessee, the revenue preferred ITA No.132/Ahd/2019. CIT (A) has quashed and set aside the audit objection, admittedly pertaining to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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