ITO, Vellore V. M/s. Sankar Fabrics, Arni

ITA 155/CHNY/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6526 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-05-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 15-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MRS MAYA J NICHANE
• Keywords: Tax effect

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL CHENNAI A BENCH, CHENNAI. BEFORE SHRI.U.B.S. BEDI, J.M. & SHRI. N.S. SAINI, A .M. I.T.A. NOS.155 AND 156/MDS/2010 ASSESSMENT YEARS: 2002-03 AND 03-04 THE INCOME TAX OFFICER, WARD I (3), VELLORE. VS. M/S. SANKAR FABRICS, NO.45, MALLI PILLAIYAR KOIL ST., ARNI. [PAN:AAAFS8133L] (APPELLANT) (RESPONDENT) REVENUE BY : SHRI SHAJI P JACOB ASSESSEE BY : MRS. MAYA J NICHANE ORDER PER BENCH THESE TWO APPEALS OF THE DEPARTMENT EMANATE FROM C OMBINED ORDER PASSED BY THE LD. CIT(A) IX, CHENNAI DATED 10.11.20 09 RELEVANT TO THE ASSESSMENT YEARS 2002-03 AND 03-04, WHEREBY DELETIO N OF PENALTIES OF ` .3.00 LAKHS AND ` .2.00 LAKHS RESPECTIVELY HAVE BEEN CHALLENGED. 2. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASS ESSEE SUBMITTED THAT THE CBDT HAS ENHANCED THE FINANCIAL LIMIT FOR FILING OF APPEAL BEFORE THE TRIBUNAL TO ` .3.00 LAKHS OF TAX EFFECT AGAINST THE EARLIER LIMIT OF ` .2.00 LAKHS AS PER CBDT INSTRUCTION NO.3 OF 2011 DATED 09.02.2011, THEREFOR E, BOTH THE APPEALS OF THE DEPARTMENT ARE NOT MAINTAINABLE DUE TO LESS TAX EFF ECT AND THE LD. DR, ON THE OTHER HAND, SUBMITTED THAT IN THIS FRESH CIRCULAR D ATED 09.02.2011, THERE IS SPECIFIC STIPULATION [AS PER PARA 11 OF THE INSTRUC TION] THAT THIS INSTRUCTION SHALL APPLY TO APPEALS FILED ON OR AFTER 09.02.2011 AND E ARLIER FILED APPEALS WILL BE GOVERNED BY EARLIER INSTRUCTIONS ON THIS SUBJECT, O PERATIVE WHEN SUCH APPEALS I.T.A. NO I.T.A. NO I.T.A. NO I.T.A. NOS SS S. .. .1 11 155 5555 55 & 1 & 1& 1 & 15 55 56/MDS/ 6/MDS/ 6/MDS/ 6/MDS/1 11 10 00 0 2 WERE FILED AND THE LD. DR HAS PLEADED THAT THE APPE ALS MAY BE DECIDED ON MERITS. 3. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND MATERIA L ON RECORD. SO FAR AS THE OBJECTION OF THE LD. DR ABOUT NON-RETROSPECTIVI TY OF REVISED LIMIT OF TAX EFFECT IS CONCERNED, WE FIND THAT NO DOUBT IN THE CBDT INS TRUCTION NO.3/2011 DATED 09.02.2011, THERE IS CLEAR STIPULATION AS PER PARA 11 OF THE SAID INSTRUCTION THAT THESE INSTRUCTIONS WILL BE APPLICABLE TO THE APPEAL S FILED ON OR AFTER 09.02.2011. BUT SIMILAR TYPE OF STIPULATION WAS THERE IN INSTRU CTION NO.3 OF 2008 DATED 15.05.2008 IN CLAUSE 11 OF SAID INSTRUCTION AND MOR E THAN ONE HIGH COURTS ARE FOUND TO HAVE HELD THAT REVISED MONETARY LIMIT WOUL D APPLY TO ALL PENDING APPEALS AND MOREOVER, VARIOUS BENCHES OF ITAT CHENN AI HAVE CONSIDERED SIMILAR CASES AGAINST THE REVENUE AND OTHERWISE, TH E DEPARTMENT HAS NOT MADE OUT A CASE TO ESTABLISH THAT THE ISSUE FALLS W ITHIN THE EXCEPTIONS PROVIDED IN THE SAID CIRCULAR/ INSTRUCTION. 4. FURTHER IN THE CASE OF CIT V. ASSOCIATED AGENCIE S, CHENNAI-600 034 REPORTED IN 295 ITR 496, THE HONBLE MADRAS HIGH CO URT HAS HELD THAT APPEALS CANNOT BE FILED IN VIOLATION OF THE SAID CIRCULAR. THE HONBLE MADRAS HIGH COURT HAD ALSO REFERRED TO THE JUDGMENT OF HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF CIT VS. DIGVIJAY SINGH REPORTED IN (2007) 2 92 ITR 314, THE JUDGMENT OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. ZO EB Y. TOPIWALS (2006) 284 ITR 379 AND ALSO ANOTHER JUDGMENT OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO., (2002) 254 ITR 565 FOR THE PROPOSITION THAT DIRECTIONS ISSUED BY THE BOARD ARE BINDING ON THE D EPARTMENT AND APPEAL FILED I.T.A. NO I.T.A. NO I.T.A. NO I.T.A. NOS SS S. .. .1 11 155 5555 55 & 1 & 1& 1 & 15 55 56/MDS/ 6/MDS/ 6/MDS/ 6/MDS/1 11 10 00 0 3 WHERE THE TAX EFFECT IS LESS THAN THAT PROVIDED IN THE SAID INSTRUCTION IS NOT MAINTAINABLE. 4.1 HENCE, IN VIEW OF THE SAID CIRCULAR AND RESPEC TFULLY FOLLOWING THE PRECEDENTS FROM HONBLE JURISDICTIONAL HIGH COURT A S NOTED ABOVE, THE APPEALS ARE DISMISSED IN LIMINE. 5 IN THE RESULT, BOTH THE APPEALS OF THE REVENUE AR E DISMISSED. ORDER PRONOUNCED SOON AFTER THE CONCLUSION OF HEAR ING ON 25.05.2011. SD/- SD/- (N.S. SAINI) ACCOUNTANT MEMBER (U.B.S. BEDI) JUDICIAL MEMBER CHENNAI, DATED, THE. 25.05.2011 VM/- TO:THE ASSESSEE//A.O./CIT(A)/CIT/D.R.