ITO WD 1(3), MUMBAI V. OSWAL FABRICS, MUMBAI

ITA 1186/MUM/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88496 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2015
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 02-03-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 09-02-2011
• Court: TRIBUNAL
• Assessee Lawyers: PREMANAND J SHRI DR P DANIEL
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI VIJAY PAL RAO , JUDICIAL MEMBER AND SHRI RAJENDRA , ACCOUNTANT MEMBER ITA NO. 1186 /MUM/2011 ASSESSMENT YEAR: - 2005 - 06 INCOME TAX OFFICER WARD 1(3) KALYAN, 02 ND FLOOR, RANI MANSION, MURBAD ROAD, KALYAN VS.` M/S OSWAL FABRICS C/O. A.M. UNADKAT, 2/29, PREM KRIPA SOCIETY OAK BAUG, NR.. ICE FACTORY KALYAN. APPELLANT RESPONDENT ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 29.10.2010 OF CIT(A) FOR THE A.Y. 2005 - 06 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS FAILED TO CONSIDER THAT THE GENUINENESS OF THE TRANSACTION HAS NOT BEEN PROVES AS CASH HAS BEEN INTRODUCED IN THEIR BANK ACCOUNTS JUST PRIOR TO ISSUE OF CHEQUES TO THE ASSESSEE AS LOANS THE APPELLANT PRAYS THE ORDER OF THE CIT(A) - 1, THANE, MAY BE VACATED AND THAT OF THE ASSESSING OFFICER BE RESTORED. REVENUE BY SHRI PREMANAND J. ASSESSEE BY SHRI DR. P. DANIEL DATE OF HEARING 02.03.2015 DATE OF PRONOUNCEMENT 02.03.2015 ITA NO. 1186/MUM/2011 ASSESSMENT YEAR: - 2005 - 06 2 | P A G E AT THE OUTSET, WE NOTE THAT T HE GRIEVANCE OF THE REVENUE IN THIS APPEAL IS AGAINST THE DELETION OF ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNSECURED LOAN OF RS. 2. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET, WE NOTE THAT THE TAX EFFECT ON THE DISPUTED I SSUE IS LESS THAN FOUR LAKHS. THE LD. DR HAS NOT DISPUTED THE FACT THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN 4,00,000/ - . NOW IN VIEW OF INSTRUCTION NO. 5/2014, DATED 10.07.2014, THE REVENUE SHOULD NOT FILE ANY APPEAL BEFORE THE TRIBUNAL, WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 4,00,000/ - . THE HONBLE BOMBAY HIGH COURT TIME AND AGAIN HELD THAT THE INST RUCTIONS/CIRCULARS PRESCRIBING MONETARY LIMIT FOR FILING OF THE APPEAL WILL HAVE RETROSPECTIVE EFFECT AND WOULD BE APPLICABLE ON PENDING APPEAL ALSO. IN THE CASE OF CIT VS. SHRI MAHDHUKAR K. INAMDAR (HUF) THANE IN ITA NO. 1021 TO 1025 OF 2008, VIDE ORDER D ATED 02.10.2009, THE HONBLE HIGH COURT WHILE INTERPRETING THE CBDT CIRCULAR DATED 15.05.2008, HELD THAT SUCH CIRCULARS WILL BE APPLICABLE ON THE OLD APPEAL ALSO. THEIR LORDSHIPS HAVE ALSO REFERRED TO THE EARLIER DECISIONS OF THE HONBLE BOMBAY HIGH COURT . IN VIEW OF THE AFORESAID BINDING PRECEDENCE OF THE HONBLE JURISDICTIONAL HIGH COURT, WE HOLD THAT THE APPEAL FILED BY THE REVENUE IN THE PRESENT CASE IS NOT MAINTAINABLE AS THE TAX EFFECT IS LESS THAN FOUR LAKHS. ACCORDINGLY THE APPEAL FILED BY THE REVE NUE IS TREATED AS DISMISSED. 3 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUCNED IN THE OPEN COURT ON THIS 02 ND DAY OF MARCH 2015 SD/ - SD/ - ( RAJENDRA ) (VIJAY PAL RAO) ( ACCOUNTANT MEMBER / YS[KK LNL; ) (JUDICIAL MEMBER/ U;KF;D LNL; ) MUMBAI DATED 02.03.2015 SKS SR. P.S, ITA NO. 1186/MUM/2011 ASSESSMENT YEAR: - 2005 - 06 3 | P A G E COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI