ACIT, Pune V. Weikfield Products India Pvt. Ltd., Pune

ITA 1277/PUN/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7458 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-03-2011
• Assessment Year: 1999-2000
• Appeal Filed On: 06-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R G NAHAR
• Assessee Lawyers: ABHAY DAMLE
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE BEFORE SHRI SHAILENDRA KUMAR, JM AND SHRI G.S. PANN U, AM ITA NO. 1277/PN/2009 ASSTT. YEAR 1999-00 ASSTT. CIT CIR. 7, PUNE . APPELLANT V. WEIKFIELD PRODUCTS INDIA P. LTD., WEIKFIELD ESTATE, NAGAR ROAD, PUNE-411 014. PAN AAACW 1865 M . RESPONDENT APPELLANT BY : SHRI ABHAY DAMLE DEPARTMENT BY : SHRI R.G. NAHAR ORDER PER SHAILENDRA KUMAR YADAV, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-III PUNE DATED 31-8-2009 FOR THE A.Y. 1999-0 0. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSES SEE STATED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LES S THAN RS. 2,00,000/- AND THE CBDT HAD ISSUED THE CIRCULAR RES TRICTING THE MONETARY LIMIT FOR FILING THE APPEAL IN THE INCOME- TAX APPELLATE TRIBUNAL WHICH IS RS. 2 LAKHS AND HENCE IN VIEW OF THE CBDT CIRCULAR NO. F. 279/MISC. 142/2007/-IT DATED 15.5.2 008, THIS APPEAL IS NOT MAINTAINABLE. ON THE OTHER HAND, THE LD. D.R. OPPOSED THE CONTENTION OF LD. A.R. FOR ASSESSEE. 3. WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASES OF CIT V/S. PITHWA ENGINEERING WORKS, 276 ITR 519 (BOM) ITA NO 1277/PN/2009 WEIKFIELD PRODUCTS A.Y. 1999-00 2 AND CIT V/S. ZEOB Y. TOPIWALLA, 284 ITR 379 (BOM.) WHEREIN IT IS HELD THAT THE MONETARY LIMIT FOR FILING APPEAL BEFO RE THE TRIBUNAL IS RS. 2 LAKHS . IN THESE CASES THE HON'BLE HIGH C OURT HAS HELD AS UNDER : 6. THIS COURT CAN VERY WELL TAKE JUDICIAL NOTICE O F THE FACT THAT BY PASSAGE OF TIME MONEY VALUE HAS GONE DOWN, THE COST OF LITIGATION EXPENSES HAS GONE UP, THE ASSESSEES ON THE FILE OF THE DEPARTMENTS HAVE INCREASED ; CONSEQUENTLY, THE BURDEN ON THE DEPARTMENT HAS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR COURTS ARE CHOKED WITH HUGE PENDENCY OF CASES. IN THIS VIEW O F THE MATTER, THE BOARD HAS RIGHTLY TAKEN A DECISION NOT TO FILE REFERENCES IF THE TAX EFFECT IS LESS THAN R S. 2 LAKHS. THE SAME POLICY FOR OLD MATTERS NEEDS TO BE ADOPTED BY THE DEPARTMENT. IN OUR VIEW, THE BOARD S CIRCULAR DATED MARCH 27, 2000, IS VERY MUCH APPLICABLE EVEN TO THE OLD REFERENCES WHICH ARE STI LL UNDECIDED. THE DEPARTMENT IS NOT JUSTIFIED IN PROCEEDING WITH THE OLD REFERENCES WHEREIN THE TAX IMPACT IS MINIMAL. THUS, THERE IS NO JUSTIFICATION TO PROCEED WITH DECADES OLD REFERENCES HAVING NEGLIGIB LE TAX EFFECT. 7. THE COURT HELD THAT THE CIRCULAR WAS APPLICABLE EVEN TO OLD APPEALS WHICH WERE STILL UNDECIDED. WE RESPECTFULLY FOLLOW THE PRECEDENTS AND DISMISS THE APPEAL FILED BY THE DEPARTMENT. 4. THE QUANTUM OF TAX EFFECT IN THIS CASE IS LESS T HAN RS. 2 LAKHS. THE REVENUE HAS NOT BROUGHT ANY THING ON REC ORD WITH FACTS AND CALCULATIONS TO ESTABLISH THAT THE TAX EF FECT IS ABOVE RS 2 LAKHS. IT IS NOT THE CASE OF THE REVENUE THAT THE RE EXISTS CONSOLIDATED ORDER, WHICH MAY FALL IN THE ONLY CATE GORY OF EXEMPT CASES AS ADVOCATED BY THE JURISDICTIONAL HIGH COURT S JUDGMENT IN THE CASE OF MADHUKAR INAMDAR (318 ITR 149)(BOM). TH IS JUDGMENT HAS ESTABLISHED A RATIO THAT THE CIRCULAR DT 15.5.2008 WOULD BE APPLICABLE TO CASES PENDING BEFORE THE COU RT EITHER FOR ADMISSION OR FOR FINAL DISPOSAL AND IT IS BINDING O N THE REVENUE. ITA NO 1277/PN/2009 WEIKFIELD PRODUCTS A.Y. 1999-00 3 FOLLOWING THE JUDGMENTS OF THE JURISDICTIONAL HIGH COURT CITED (SUPRA), WE DISMISS THIS APPEAL AS NOT MAINTAINABLE . 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH MARCH 2011. SD/- SD/- (G.S. PANNU) ACCOUNTANT MEMBER (SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE, DATED THE 30 TH MARCH 2011 ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE ASSESSEE 2. THE DEPARTMENT 3. THE CITIV PUNE 4. THE CIT(A)- III PUNE 4. THE D.R. A BENCH, PUNE 5. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE