ACIT, CHENNAI V. M/s. Sieve Tech India Pvt Ltd., CHENNAI

ITA 1028/CHNY/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 51855 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 06-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR I V IJAYAKUMAR IRS
• Assessee Lawyers: A S SRIRAMAN
• Keywords: Tax effect
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A.NO. 1028/MDS/2011 (ASSESSMENT YEAR : 2005-06) THE ASSISTANT COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-VI(3), CHENNAI 600 034. VS. M/S. SIEVE TECH INDIA PVT. LTD., NO.18, SIDCO IND. ESTATE, MARAIMALAI NAGAR, CHENNAI 603209. PAN AAACS 5005 J (APPELLANT) (RESPONDENT) APPELLANT BY : DR. I. VIJAYAKUMAR, IRS, C IT- DR RESPONDENT BY : SHRI A.S.SRIRAMAN, ADVOCA TE DATE OF HEARING : 20 TH SEPTEMBER, 2011 DATE OF PRONOUNCEMENT : 20 TH SEPTEMBER, 2011 O R D E R PER DR. O.K.NARAYANAN, VICE PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2005-06. THE APPEAL IS DIRECT ED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-V AT CHENNAI DATED 14.2.2011. THE APPEAL ARISES OUT OF THE ASSE SSMENT ITA 1028/11 :- 2 -: COMPLETED UNDER SEC.143[3] READ WITH SEC. 147 OF TH E INCOME-TAX ACT, 1961. 2. THE ONLY GROUND RAISED BY THE REVENUE IN THE PRE SENT APPEAL IS THAT THE COMMISSIONER OF INCOME-TAX (APPE ALS) HAS ERRED IN DELETING THE DISALLOWANCE OF BONUS MADE BY THE ASSESSING OFFICER UNDER SEC.43B. 3. IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN ` 3 LAKHS. INSTRUCTION NO.3 OF 2011 DATED 9 TH FEB.,2011 ISSUED BY THE CENTRAL BOARD OF DIRECT TAX ES, UNDER SEC.268A(1) OF THE INCOME-TAX ACT, 1961, HAS GIVEN DIRECTIONS NOT TO FILE APPEALS BEFORE THE INCOME-TAX APPELLATE TRI BUNAL WHERE THE TAX EFFECT DOES NOT EXCEED ` 3 LAKHS. 3. THE FIRST INSTRUCTION NO.1093 DATED 28.10.1992 I SSUED BY THE BOARD, HAD LAID DOWN SUCH LIMIT AT ` 25,000/-. THEREAFTER THROUGH INSTRUCTION NO. 1979 DATED 27.3.2000, THE S AID LIMIT WAS ENHANCED TO ` 1,00,000/-. SUBSEQUENTLY THE LIMIT WAS AGAIN INCREASED TO ` 2 LAKHS THROUGH INSTRUCTION NO.2 DATED 24.10.2005. 4. IN THE LIGHT OF THE ABOVE EARLIER INSTRUCTIONS, WHEN THE APPEALS WERE DISPOSED OF BY THE TRIBUNAL IN LIMINE ON THE GROUND ITA 1028/11 :- 3 -: OF NON-MAINTAINABILITY, ISSUES WERE TAKEN UP BEFORE THE HON'BLE HIGH COURTS. THE HON'BLE BOMBAY HIGH COURT IN THE C ASE OF COMMISSIONER OF INCOME-TAX V. CAMCO COLOUR CO. (254 ITR 565) HAS HELD THAT WHERE THE REVENUE EFFECT INVOLVED IN THE APPEAL IS BELOW THE PRESCRIBED LIMIT, THE APPEAL IS NOT MAINT AINABLE BEFORE THE APPELLATE TRIBUNAL. THEREAFTER THE HON'BLE MADR AS HIGH COURT IN CWT VS. ANNAMALI (258 ITR 675) HELD THAT THE LIM IT PRESCRIBED IN THE LATEST INSTRUCTION IS APPLICABLE NOT ONLY TO THE APPEALS TO BE FILED AFTER THE ISSUE OF SUCH INSTRUCTIONS, BUT ALS O APPLICABLE TO THE PENDING APPEALS. THIS VIEW WAS AGAIN FOLLOWED BY T HE HON'BLE MADRAS HIGH COURT IN THE CASE OF COMMISSIONER OF IN COME-TAX V. ASSOCIATED ELECTRICAL AGENCIES (295 ITR 496). THE HON'BLE BOMBAY HIGH COURT ALSO HAS HELD THE SAME VIEW IN TH E CASE OF COMMISSIONER OF INCOME-TAX V. PITHWA ENGG. WORKS ( 276 ITR 519) AND IN THE CASE OF COMMISSIONER OF INCOME-TAX VS. ZOEB Y. TOPPIWALA (284 ITR 379). 5. THUS, THE COURTS HAVE CONSISTENTLY HELD THAT WHE RE THE TAX EFFECT IS LESS THAN THE PRESCRIBED LIMIT, APPEALS ARE NOT MAINTAINABLE BEFORE THE TRIBUNAL AND HAVE ALSO HELD THAT THE ITA 1028/11 :- 4 -: LATEST SUCH INSTRUCTIONS ARE APPLICABLE EVEN TO THE PENDING APPEALS. 6. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THIS APPEAL IS NOT MAINTAINABLE BEFORE TH E TRIBUNAL. ACCORDINGLY, THE APPEAL IS DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING, ON TUESDAY, THE 20 TH OF SEPTEMBER, 2011 AT CHENNAI. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER (DR. O.K.NARAYANAN) VICE-PRESIDENT CHENNAI, DATED : 20 TH SEPTEMBER, 2011 MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR