Jaya Constructions, Visakhapatnam V. THE ITO, Visakhapatnam

CO 16/VIZ/2016

• Counselvise Citation: [2016] 112 COUNSELVISE.COM (IT) 4342 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-09-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 28-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S RAVI SANKAR NARAYAN
• Keywords: Tax effect

Judgement Text

ITA NO.381/VIZAG/2015 & CO 16/VIZAG/2016 M/S. JAYA CONSTRUCTIONS, VISAKHAPATNAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.381/VIZAG/2015 ( / ASSESSMENT YEAR: 2006-07) ITO, WARD - 1(4), VISAKHAPATNAM VS. M/S. JAYA CONSTRUCTIONS, VISAKHAPATNAM [PAN: AAFFJ3272Q ] ( % / APPELLANT) ( &'% / RESPONDENT) C.O. NO.16/VIAG/2016 (ARISING OUT OF I.T.A.NO.381/VIZAG/2015) ( / ASSESSMENT YEAR: 2006-07) M/ S. JAYA CONSTRUCTIONS, VISAKHAPATNAM VS. ITO, WARD - 1(4), VISAKHAPATNAM ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI S. RAVI SANKAR NARAYAN, DR / RESPONDENT BY : SHRI G.V.N. HARI, AR / DATE OF HEARING : 28.09.2016 / DATE OF PRONOUNCEMENT : 30.09.2016 ITA NO.381/VIZAG/2015 & CO 16/VIZAG/2016 M/S. JAYA CONSTRUCTIONS, VISAKHAPATNAM 2 / O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE AND CROSS OBJECTI ON FILED BY THE ASSESSEE ARE DIRECTED AGAINST ORDER OF THE COMM ISSIONER OF INCOME TAX (A)-1, VISAKHAPATNAM DATED 27.8.2015 FOR THE AS SESSMENT YEAR 2006-07. SINCE, THE FACTS ARE IDENTICAL AND ISSUES ARE COMMON, THEY ARE CLUBBED, HEARD TOGETHER AND DISPOSED-OFF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. WHEN THIS APPEAL IS TAKEN UP FOR HEARING, THE LD. A.R. FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE MONETARY LIMIT FIXED BY THE CBDT FOR FILING APP EAL BEFORE THE ITAT VIDE ITS CIRCULAR NO.21/2015 DATED 10.12.2015. THE REFORE, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND ACCORD INGLY, REQUESTED TO DISMISS THE APPEAL FILED BY THE REVENUE. 3. THE LD. D.R. ON THE OTHER HAND SUBMITTED THAT TH OUGH TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW THE MONETARY LIMIT PRESCRIBED BY THE CBDT, FOR FURTHER APPEAL TO THE ITAT, THE CASE COVE RED BY THE EXCEPTION PROVIDED AT PARA-8(B) OF THE CBDT INSTRUCTION NO.3/ 2011 DATED 9.2.2011. THEREFORE, THERE IS NO MERIT IN THE ARGUMENTS OF TH E ASSESSEE THAT THIS CASE IS COVERED BY THE LATEST CIRCULAR OF CBDT CIRC ULAR (SUPRA). ITA NO.381/VIZAG/2015 & CO 16/VIZAG/2016 M/S. JAYA CONSTRUCTIONS, VISAKHAPATNAM 3 4. HAVING HEARD BOTH THE PARTIES AND CONSIDERED MAT ERIALS AVAILABLE ON RECORD, WE FIND THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW THE MONETARY LIMIT PRESCRIBED BY THE CBDT VIDE CIRCULAR (SUPRA). IN VIEW OF THE LATEST CIRCULAR ISSUED BY THE CBDT, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. WE, THEREFORE, NOTICED THAT THE I SSUE INVOLVED IN THIS APPEAL IS COVERED BY THE SPECIAL BENCH DECISION OF ITAT, VISAKHAPATNAM IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORT VS . ACIT (136 ITD 23), WHEREIN THE COORDINATE BENCH OF THIS TRIBUNAL, HELD THAT NO DISALLOWANCE CAN BE MADE UNDER THE PROVISIONS OF SECTION 40(A)(I A) OF THE ACT, IF AMOUNTS HAVE BEEN PAID WITHIN THE SAME FINANCIAL YE AR. THEREFORE, WE ARE OF THE VIEW THAT EVEN ON MERITS, THE APPEAL FIL ED BY THE REVENUE IS NOT MAINTAINABLE. HENCE, IN VIEW OF THE LATEST CIR CULAR OF THE CBDT AND ALSO FOLLOWING THE COORDINATE BENCH DECISION IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORT VS. ACIT (SUPRA), WE DISMISS T HE APPEAL FILED BY THE REVENUE. 5. THE ASSESSEE HAS FILED CROSS OBJECTION IN SUPPOR T OF THE ORDER OF THE CIT(A). THEREFORE, FOR THE REASONS RECORDED IN THE PRECEDING PARAGRAPH, WE DISMISS THE CROSS OBJECTION FILED BY THE ASSESSEE AS NOT MAINTAINABLE. ITA NO.381/VIZAG/2015 & CO 16/VIZAG/2016 M/S. JAYA CONSTRUCTIONS, VISAKHAPATNAM 4 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE A ND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 30 TH SEPT16. SD/- SD/- ( . ) ( . ) (V. DURGA RAO) (G. MANJUNATHA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER # /VISAKHAPATNAM: ' /DATED : 30.09.2016 VG/SPS )# *# /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO, WARD-1(4), VISAKHAPATNA M 2. / THE RESPONDENT M/S. JAYA CONSTRUCTIONS, D.NO.1 4-3-2, FLAT NO.406, MAHARANIPETA, VISAKHAPATNAM 3. + / THE CIT, VISAKHAPATNAM 4. + ( ) / THE CIT (A)-1, VISAKHAPATNAM 5. # . , . , # / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // 12 . (SR.PRIVATE SECRETARY) . , # / ITAT, VISAKHAPATNAM