The ACIT, Circle-2, V. Dr.(M/s) Binaben J. Kundalia,

ITA 1542/RJT/2005

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50045 (ITAT-RAJKOT)
• Duration Of Justice: 5 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-05-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 02-09-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: DM RINDANI
• Keywords: Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) I.T.A. NO.1542/RJT/2005 (ASSESSMENT YEAR 2001-02) ACIT, CIR.2 VS DR (MS) BINABEN J KUNDALIA RAJKOT PROP VIRAJ HOSPITAL RAJKOT PAN : NOT AVAILABLE (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AVINASH KUMAR RESPONDENT BY: SHRI DM RINDANI O R D E R PER N.R.S. GANESAN, JM THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-III, RAJKOT DATED 23-06-2005 AND PERTAINS TO ASSESSMENT YEAR 2001-02. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ADDITION OF RS.4, 15,000 U/S 68 OF THE INCOME-TAX ACT. 2. DURING THE COURSE OF HEARING SHRI DM RINDANI, TH E LD.REPRESENTATIVE OF THE ASSESSEE BROUGHT TO THE NOTICE OF THIS BENCH THAT T HE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.2 LAKHS, THEREFORE, APPEAL O F THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE CIRCULAR ISSUED BY THE CBDT. SHRI AVINASH KUMAR, THE LD.DR VERY FAIRLY CONCEDED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.2 LAKHS. NO EXCEPTIONAL CIRCUMSTANCE AS PO INTED OUT BY THE CBDT IN ITS CIRCULAR IS BROUGHT TO THE NOTICE OF THIS BENCH. I T IS WELL SETTLED PRINCIPLES OF LAW THAT THE CIRCULAR ISSUED BY THE CBDT IN EXERCISE OF THE ADMINISTRATIVE POWERS U/S 119 OF THE INCOME-TAX ACT IS BINDING ON ALL SUBORDI NATE AUTHORITIES. THEREFORE, THE REVENUE OUGHT NOT TO HAVE FILED THIS APPEAL BEF ORE THIS TRIBUNAL SINCE THE TAX EFFECT IS ADMITTEDLY LESS THAN RS.2 LAKHS. THEREFO RE, THE APPEAL FILED BY THE ITA NO.1542/RJT/2005 2 REVENUE IS CONTRARY TO THE INSTRUCTIONS OF THE CBDT ; HENCE IT IS NOT MAINTAINABLE. ACCORDINGLY WITHOUT GOING TO THE MERIT OF THE APPEA L, THE SAME IS DISMISSED. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27-05-2011. SD/- SD/- (A.L. GEHLOT) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 27 TH MAY, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-III, RAJKOT 4. THE CITL-II, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT