ACIT, CHENNAI V. M/s. MCS Investments Pvt Ltd., CHENNAI

ITA 1015/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58074 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 21-03-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 06-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR YOGESH KAMAT
• Keywords: Tax effect; Revised return
• Section: 234B; 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AN D SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1015/MDS/2011 (ASSESSMENT YEAR: 2001-02) ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-IV(1), CHENNAI-600 034. VS. M/S. MCS INVESTMENTS PVT. LTD., NO.20/1, BAHIRATHI AMMAL STREET, T.NAGAR, CHENNAI-600 017. PAN:AABCM1207F (APPELLANT) (RESPONDENT) APPELLANT BY : DR. YOGESH KAMAT, JCIT RESPONDENT BY : NONE DATE OF HEARING : 21 ST MARCH, 2012 DATE OF PRONOUNCEMENT : 21 ST MARCH, 2012 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE DEPART MENT IMPUGNING THE ORDER DATED 7.2.2011 PASSED BY CIT(A) RELEVANT TO THE ASSESSMENT YEAR 2001-02 WHEREBY CIT (A) DELETED THE ADDITION MADE BY THE ASSESSING OFFICER TO THE TUNE OF ` 4,64,813/-. 2. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2001-02 ON 22.10.2001 RETURNING TH E INCOME OF ` 18,48,780/-. THEREAFTER THE ASSESSEE FILED REVISED RETURN OF INCOME ON 29.03.2002 DECLARING INCOME OF ` ITA NO.1015/MDS /2011 2 19,38,780/-. THE ASSESSEE IS A NON-BANKING FINANCI AL SERVICES COMPANY AND REGISTERED AS SUCH WITH RBI. T HE ASSESSEE HAD CLAIMED DIMINUTION IN VALUE OF INVESTM ENT WHICH REQUIRES DISALLOWANCE OF ` 4.64 LAKHS. THE ASSESSEE HAD BEEN ENGAGED IN THE BUSINESS OF PURCHASE AND SA LE OF SHARES FROM SECONDARY MARKETS. THE CASE OF THE ASSE SSEE WAS REOPENED UNDER SECTION 147 AND NOTICE UNDER SEC TION 148 WAS ISSUED ON 31.3.2008 AND FURTHER NOTICE UNDE R SECTION 143(2) WAS ALSO ISSUED TO THE ASSESSEE ON 25.9.2008 . THE REASONS RECORDED FOR REOPENING WAS STATED THAT THE COMPANY HAD DEBITED ` 4,64,813/- AS DIMINUTION IN VALUE OF STOCKS. THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE A SSESSEE AND ADDED BACK DISALLOWANCE ON ACCOUNT OF DIMINUTIO N IN VALUE OF STOCK AND DEMANDED ` 3,72,237/- INCLUDING INTEREST UNDER SECTION 234B & 234C TO THE TUNE OF ` 1,97,206/-. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). TH E CIT(A) AFTER GOING THROUGH THE FACTS OF THE CASE AND SUBMI SSIONS MADE BY THE PARTIES HELD THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN ADDING SUM OF ` 4,64,813/- AND THUS DIRECTED THE ASSESSING OFFICER TO ALLOW THE ABOVE SAID CLAIM IN THE ITA NO.1015/MDS /2011 3 COMPUTATION OF TOTAL INCOME OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2001-02. 3. WE HAVE HEARD THE LEARNED D.R. AND PERUSED THE RECORDS. NONE HAS APPEARED ON BEHALF OF ASSESSEE. A PERUSAL OF THE RECORD SHOWS THAT THE PRESENT APPE AL IS NOT MAINTAINABLE AS THE TAX EFFECT DOES NOT EXCEED MONE TARY LIMIT AS PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO.3/11 DATED 9.2.2011. THE LEARNED D.R. CONCEDED THAT THE TAX E FFECT IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT AS PRESCRIBED IN THE AFORESAID INSTRUCTION OF THE BOAR D. WITHOUT GOING INTO THE MERITS OF THE CASE, THE PRESENT APPE AL IS DISMISSED AS THE TAX EFFECT DOES NOT EXCEED THE MON ETARY LIMIT PRESCRIBED BY THE CBDT. THUS THE PRESENT APPE AL IS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST MARCH, 2012. SD/- SD/- (ABRAHAM P.GEORGE) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 21 ST MARCH, 2012. SOMU ITA NO.1015/MDS /2011 4 COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6 ) G.F .