The ITO, Ward - 4(3), Surat V. M/s. Surat Silk Mills Ltd., Surat

ITA 1360/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0155 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-08-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 05-04-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHUBNESH KULSHRESTHA
• Assessee Lawyers: J P SHAH

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE S/SHRI BHAVNESH SAINI, JM AND D.C.AGRAWAL, A M INCOME-TAX OFFICER, WARD 4(3), SURAT. VS. M/S SURAT TEXTILES MILLS LTD., GARDEN MILLS COMPLEX, SAHARA GATE, RING ROAD, SURAT. (APPELLANT) .. (RESPONDENT) REVENUE BY :- SHRI BHUBNESH KULSHRESTHA, DR ASSESSEE BY:- SHRI J.P. SHAH, AR O R D E R PER D. C. AGRAWAL, ACCOUNTANT MEMBER . THIS IS AN APPEAL FILED BY THE REVENUE RAISING FOL LOWING GROUNDS:- (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE CIT(A) HAS ERRED IN LAW IN DELETING THE DISALLOWANCE OF RS.198 2342/- MADE BY THE AO ON ACCOUNT OF EXCESS CLAIM OF PROJECT EXP ENDITURE. (2) THE LD. CIT(A) HAS NOT APPRECIATED THE FACT THAT TH E ADDITION OF RS.1982342/- WAS MADE ON ACCOUNT OF EXCESS CLAIM OF PROJECT EXPENDITURE WRONGLY CLAIMED BY THE ASSESSEE. 2. THE LD. DR SUBMITTED THAT THE BOARD HAS ISSUED I NSTRUCTION NO.5 DATED 15 TH MAY, 2008 IN LOSS CASES. THE REVENUE IN THE CASE O F LOSS SHOULD BE SEEN FROM THE GROUNDS OF APPEAL. IF TAX E FFECT ON THE BASIS OF ADDITION CONTESTED, IS MORE THAN THE PRESCRIBED LIM IT THEN DEPARTMENT IS REQUIRED TO FILE THE APPEAL. ITA NO.1360/AHD/2007 ASST. YEAR :2003-04 2 3. THE LD. AR ON THE OTHER HAND SUBMITTED THAT THE PRESENT APPEAL HAS BEEN FILED ON 5 TH APRIL, 2007. THEREFORE, INSTRUCTION NO.5 DATED 15 TH MAY, 2008 WOULD BE APPLICABLE. HE REFERRED TO THE DECISI ON OF HON. DELHI HIGH COURT IN THE CASE OF CIT VS. NANAK RAM JAISINGHANIA (2009) 317 ITR 302 (DEL) FOR THE PROPOSITION THAT ABOVE INSTRUCTION WO ULD BE APPLICABLE IN RESPECT OF APPEALS FILED AFTER 15 TH MAY, 2008. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND RESP ECTFULLY FOLLOWING THE DECISION OF HON. DELHI HIGH COURT IN THE CASE O F CIT VS. MANGLAM RICINUS LTD. (2008) 174 TAXMAN 186 (DEL), WE HOLD T HAT INSTRUCTION NO.5 OF 15 TH MAY, 2008 COULD ONLY BE APPLICABLE IN THOSE CASES WHERE THE APPEAL IS FILED AFTER THAT DATE. SINCE THE APPEAL F ILED BY THE REVENUE IS BEFORE 15 TH MAY, 2008, WE FOLLOW THE DECISION OF HON. DELHI HI GH COURT IN CIT VS. MANGLAM RICINUS LTD. (SUPRA) AND DISMISS THE APPEAL FILED BY THE REVENUE ON ACCOUNT OF LOW REVENUE EFFECT. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 18/8/2010. SD/- SD/- (BHAVNESH SAINI) (D.C.AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBE R AHMEDABAD, DATED : 18.8.2010. MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD