ITO, Ward-2, Warangal V. Shri Vaddiraj Ganesh, Warangal

ITA 1170/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66180 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-05-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 17-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V V RAMANA RAO
• Assessee Lawyers: G MANIKYA PRASAD
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO. 1170/HYD/2011 ASSESSMENT YEAR : 2006-07 INCOME-TAX OFFICER, WARD-2, APPELLANT WARANGAL VS. SHRI VADDIRAJ GANESH RESPONDENT WARANGAL (PAN AADHV 8154 M) APPELLANT BY : SHRI V.V. RAMANA RAO RESPONDENT BY : SHRI G. MANIKYA PRASAD DATE OF HEARING : 08/08/2012 DATE OF PRONOUNCEMENT : 08/08 /2012 ORDER PER ASHA VIJAYARAGHAVAN, J.M.: THIS APPEAL IS PREFERRED BY THE REVENUE DIRECTED A GAINST THE ORDER OF CIT(A)-VI, HYDERABAD, DATED 31/03/2011 FOR THE ASSESSMENT YEAR 2006-07. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS I N ITS APPEAL:- 1. THE ORDER OF THE CIT(A) IS ERRONEOUS ON TRUTH F ACTS AND IN LAW. 2. THE CIT(A) ERRED IN HOLDING THAT THE PAYMENT WAS MADE DURING THE FY 2005-06 IN THE LIGHT OF THE FACT THAT CHEQUE WAS CLEARED IN THE NEXT FY. 3. THE CIT(A) FAILED TO APPRECIATE THAT THE LEASE A GREEMENT WAS ENTERED ONLY IN THE SOME OF THE NAMES OF CO-OWNERS AND NOT ALL THE CO-OWNERS HENCE OUGHT TO HAVE UPHELD THE ADDIT ION MADE BY THE AO RECEIVED ON ACCOUNT OF RENT RECEIPTS, IN THE HEADS OF INCOME. 4. THE CIT(A) HAS FAILED TO APPRECIATE THAT THE PRO PORTION OF RENT ASSESSABLE IN THE HANDS OF EACH CO-OWNER NOT CLEARL Y DISTINGUISHABLE AND HENCE OUGHT TO HAVE UPHELD THE ADDITION MADE BY THE AO ON ACCOUNT OF RENT, IN THE HANDS OF THE ASSESSEE. . 2 ITA NO. 1170HYD/2011 SHRI VADDIRAJ GANESH 3. THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OU TSET, SUBMITTED THAT THE TAX EFFECT IN THE INSTANT CASE IS LESS THAN RS. 3 LAKHS. THEREFORE, IN VIEW OF CBDT INSTRUCTION NO. 3 OF 2011 DATED 9.2.2011 RE PORTED IN 332 ITR (STATUTE) 1 AND IN VIEW OF THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF MADHUKAR K. INAMDAR HUF, 318 ITR 149 (BOM), APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND, THEREFORE, THE SAM E MAY BE DISMISSED. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. WE FIND TH AT, AFTER GIVING APPEAL EFFECT, THE TAX EFFECT INVOLVED IN THIS APP EAL FILED BY THE REVENUE IS LESS THAN RS. 3 LAKHS AND THIS POSITION HAS NOT BEEN DISPUTED EVEN BY THE LEARNED DR. AS PER THE CBDT IN STRUCTION NO. 3 OF 2011 ISSUED ON 09/02/2011, THE MONETARY LIMIT FO R FILING OF AN APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL HAS BE EN REVISED TO RS. 3 LAKHS. AS DECIDED BY THE CBDT, APPEALS SHALL NOT BE FILED BY THE DEPARTMENT IN CASES WHERE TAX EFFECT DOES NOT E XCEED RS. 3 LAKHS. IN THE CASE OF CIT VS. MADHUKAR INAMDAR (HUF ) 318 ITR 149, THE HONBLE BOMBAY HIGH COURT HAS HELD THAT CBDT IN STRUCTION FIXING ANY MONETARY LIMIT FOR FILING THE APPEAL WOU LD APPLY EVEN FOR THE PENDING CASES. KEEPING IN VIEW THE SAID DECISIO N OF HONBLE JURISDICTIONAL HIGH COURT AND THE BOARD INSTRUCTION NO. 3 OF 2011 DATED 09/02/2011, WE HOLD THAT THE PRESENT APPEAL F ILED BY THE DEPARTMENT INVOLVING TAX EFFECT OF LESS THAN RS. 3 LAKHS IS NOT MAINTAINABLE AND THE SAME IS, THEREFORE, DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D, AS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON 08/08/2012. SD/- SD/- (D. KARUNAKARA RAO) (ASHA VIJAYA RAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 8 TH AUGUST, 2012 KV 3 ITA NO. 1170HYD/2011 SHRI VADDIRAJ GANESH COPY TO:- 1) ITO, WARD-2, WARANGAL 2) SHRI VADDIRAJ GANESH, H.NO. 13-4-22, MATWADA, WARANGAL. 3) THE CIT (A)-VI, HYDERABAD 4) THE CIT-VI, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD