IN INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH BEFORE SHRI N.K. SAINI, VICE PRE SIDENT & SHRI SANJAY GARG, JUDICIAL ME MBER ITA Nos. 1586/CHD/2018 Assessment Year : 2013-14 DCIT, Vs. M/s Spray Engineering Circle-1(1), Devices Ltd., Plot No.25, Chandigarh Industrial Area-II, Chandigarh PAN NO:AAICS5252M Appellant & Respondent C.O. No. 11/Chd/2019 (In ITA No. 1586/Chd/2018) Assessment Years : 2013-14 M/s Spray Engineering Vs. DCIT, Devices Ltd., Plot No.25, Circle-1(1), Industrial Area-II, Chandigarh Chandigarh PAN NO: AAICS5252M Appellant & Respondent (Revenue by : Shri Manjit Singh, CIT DR (Assessee by : None (Date of Hearing : 27.08.2019 (Date of Pronouncement : 27.08.2019 Order Per Sanjay Garg, Judicial Member: captioned appeal by Revenue and corresponding Cross Objections by assessee are arising from order dated 28.09.2018 ITA No.1586-chd-2018 & C.O. 11-c-2019 M/s Spray Engineering Devices Ltd, Chandigarh 2 of Commissioner of Income Tax (Appeals)-4, Ludhiana [hereinafter referred to as CIT(A)] 2. First, we take up Revenue s appeal in ITA No. 1586/Chd/2018. ITA No. 1586Chd/2018: 3. None appeared on behalf of assessee. It is noticed that this appeal filed by Department is not maintainable in view of recent Circular No. 17/2019 dt. 08/08/2019 issued by CBDT, wherein, monetary limit for filing appeals by Department before ITAT has been increased to Rs. 50,00,000/- from Rs. 20,00,000/- as specified in earlier circular No. 3/2018 dated 11.07.2019. It has been further clarified by CBDT vide F.No. 279/Misc./ITJ dated 20.08.2019 that revised monetary limit mentioned in Circular No. 17 of 2019 is applicable to all pending SLPs appeals cross-objections references and that all such pending appeals within revised limit shall be withdrawn by Department on or before 31.10.2019. 4. In view of aforesaid discussion, present appeal filed by Department is dismissed due to low tax effect. It is, however, clarified that dismissal of above appeal shall not be taken to be affirmation of order of CIT(A) on merits. legal ITA No.1586-chd-2018 & C.O. 11-c-2019 M/s Spray Engineering Devices Ltd, Chandigarh 3 issue raised by Revenue is being left open to be adjudicated in appropriate case. C.O. No. 11/Chd/2019 by Assessee : 5. assessee has taken following Cross objections:- 1. Ld. CIT (Appeals) while allowing amount paid to foreign export agent, failed to appreciate fact that from full amount of USD 1,89,000/- booked as expenditure, USD 89,000/- was written back as income in FY 2015-16 as excess provision written back and added to total income of AY 2016-17. But amount equivalent to USD 89000 was not allowed. Disallowance is unlawful and liable to be deleted. 6. Vide aforesaid Cross objections, assessee has claimed that out of total disallowance of expenditure of USD 1,89,000/-, assessee has already written back amount of USD 89,000/- and has shown same as income of assessee in financial year 2015-16. However, assessee has not been given benefit of said income shown out of disallowance made by Assessing Officer. This ground is accordingly restored to file of Assessing Officer to verify contention of assessee and decide same in accordance with law. In result, Cross objections of assessee are allowed for statistical purposes. ITA No.1586-chd-2018 & C.O. 11-c-2019 M/s Spray Engineering Devices Ltd, Chandigarh 4 In result, appeal of Revenue is dismissed, whereas, Cross objections of assessee are allowed for statistical purposes. Order pronounced in Open Court on 27.08.2019. Sd/- Sd/- (N.K. SAINI) (SANJAY GARG) Vice President Judicial Member Dated : 27.08.2019 . . (Copy of order forwarded to : 1. Appellant 2. & Respondent 3. 6 CIT 4. 6 CIT(A) 5. 4 & DR, ITAT, CHANDIGARH 6. Guard File By order, Assistant Registrar ITA No.1586-chd-2018 & C.O. 11-c-2019 M/s Spray Engineering Devices Ltd, Chandigarh 5 [2009] 317 ITR 218 (SC) [IN SUPREME COURT OF INDIA] LIBERTY INDIA v. COMMISSIONER OF INCOME-TAX 1. That Ld. Commissioner of Income Tax (Appeals) has erred in restricting addition to 5% of total expenses of Rs. 1, 19, 34, 080/- against addition of 10% as made by ITA No.1586-chd-2018 & C.O. 11-c-2019 M/s Spray Engineering Devices Ltd, Chandigarh 6 Assessing Officer as per page 30 of order of CIT (Appeal) . 2. That Ld. Commissioner of Income tax (Appeals) has erred in confirming action of Assessing Officer in not allowing deduction u/s 80 IB on DEPB and Duty draw back being export incentives as par page JO" 6 f order of CIT (Appeal). 3. That respondent craves leave to add or amend any ground of cross-objections before appeal is finally heard or disposed off. DCIT, Circle-1(1), Chandigarh v. Spray Engineering Devices Ltd