INCOME TAX OFFICER -2, BHILAI(CG) V. M/S RAJA TRADERS, BHILAI(CG)

ITA 142/BIL/2011

• Counselvise Citation: 14224714 RSA 2011
• Duration Of Justice: 3 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 28-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S M DAS
• Assessee Lawyers: S R RAO
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI MUKUL K. SHRAWAT , JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER IT A NO. 1 42 / BLPR./2011 ( ASSESSMENT YEAR : 20 0 8 09 ) INCOME TAX OFFICER 2 AAYAKAR BHAVAN NEW CIVIC CENTRE, BH ILAI (C.G) APPELLANT V/S M/S. RAJA STEEL TRADERS , BHILAI PROP: SHRI A.E. MANOJ RAJA KRISHNA TALKIES ROAD RISALI, BHILAI PAN ACNPR 3933J .... RESPONDENT REVENUE BY : SHRI S.M. DAS ASSES SEE BY : SHRI S.R. RAO DATE OF HEARING 1 1 .06.2015 DATE OF ORDER 11 .06.2015 O R D E R PER SHAMIM YAHYA, A.M. THE APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 10 TH MARCH 2011 , PASSED BY THE LEARNED CIT(A), BILASPUR, FOR THE ASSESSMENT YEAR 20 08 09 . THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. WHETHER IN LAW AND ON FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF ` 48,585, MADE BY THE A.O. ON ACCOUNT OF U NDER VALUATION OF CLOSING STOCK; M/S. RAJA STEEL TRADERS 2 2 . WHETHER IN LAW AND ON FACTS & CIRCUMSTANCE S OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF ` 50,000, MADE BY THE A.O. MAKING DISALLOWANCE OUT OF TRANSPORTATION EXPENSES; 3 . WHETHER IN LAW AND ON FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELE TING THE ADDITION OF ` 52,283 MADE BY THE A.O. ON ACCOUNT OF TDS; 4 . WHETHER IN LAW AND ON FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION 1,26,147, MADE BY THE A.O. BY MAKING DISALLOWANCE OUT OF INTEREST EXPEN SES; 5 . WHETHER IN LAW AND ON FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION ` 1,26,147 MADE BY THE A.O. BY MAKING DISALLOWANCE OUT OF TRUCK RUNNING EXPENSES, TRANSPORTATION EXPENSES, LEGAL EXPENSES, TRAVEL & CONVEYANCE EXPENSES, TELEPHONE EXPENS ES, SHOP EXPENSES AND DEPRECIATION ON CAR. 2. A T THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE DOES NOT EXCEED ` 3,00,000. THE LEARNED COUNSELS SUBMISSION IN THIS REGARD IS A S UNDER: IN VIEW OF CBDT INSTRUCTION NO.3/2011 DT. 09.02.2011, THE APPEAL BEFORE APPELLATE TRIBUNAL SHALL NOT BE FILED BY DEPARTMENT UNLESS THE TAX EFFECT EXCEEDS ` 3,00,000. COPY ENCLOSED. THE DEPARTMENT HAS FILED APPEAL AFTER 23.05.2011 I.E., AFTER IS SUE OF CBDT INSTRUCTION . IN VIEW OF DECISION OF JURISDICTIONAL HIGH COURT OF CHHATTISGARH IN CASE OF ITO 2(1) V/S HIRA STEEL LTD., RAIPUR, ITA NO.10 OF 2005 HAS HELD THAT THE APPEALS WHICH HAS TAX EFFECT NOT MORE THAN THE PRESCRIBED LIMIT IS TO BE DISMISS ED WITHOUT GOING INTO THE MERITS. JURISDICTIONAL HIGH COURT OF CHHATTISGARH HAS ALSO HELD IN CASE OF CIT V/S ANAND ROADWAYS RAJNANDGAON, INCOME TAX REFERENCE NO.97 OF 1997 DATED 30.01.2004, HAS HELD THAT TRIBUNAL WAS JUSTIFIED IN LAW IN DISMISSING THE DEPA RTMENTAL APPEAL AS INCOMPETENT AS PER BOARD CIRCULAR DATED 18.11.1992 WITHOUT DECIDING THE CASE ON MERITS . M/S. RAJA STEEL TRADERS 3 3. UPON CAREFUL CONSIDERATION AND HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE, WE FIND THAT THE TAX EFFECT IN THIS CASE IS BELOW THE MONETARY LIMI T FIXED BY THE CBDT FOR FILING THE APPEAL BEFORE THE TRIBUNAL. AS SUCH, THE APPEAL IS LIABLE TO BE DISMISSED AS NON MAINTAINABLE. THIS VIEW IS ALSO SUPPORTED BY THE HONBLE JURISDICTIONAL HIGH COURTS DECISION CITED SUPRA. 4. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT O N 11 TH JUNE 2015 SD/ - MUKUL K. SHRAWAT JUDICIAL MEMBER SD/ - SHAMIM YAHYA ACCOUNTANT MEMBER RAI PUR , DATED : 11 TH JUNE 2015 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE ; (2) THE REVENUE; (3) THE CIT(A ) ; (4) THE CIT, BILASPUR CITY CONCERNED ; (5) THE DR, ITAT, RAIPUR (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY SR. PRIVATE SECRETARY / ASSISTANT REGISTRAR ITAT, RAIPUR