Dy. Director of Income Tax (E)-I, Hyderabad V. M/s Gelli Narayana Chetty Trust, Hyderabad

ITA 1562/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91692 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 05-06-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 09-10-2014
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: M V JOSHI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER I.T.A. NO. 1562/HYD/2014 ASSESSMENT YEAR: 2002-03 DDIT(E) - I, HYDERABAD VS M/S. GELLI NARAYANA CHETTY TRUST, HYDERABAD [PAN: AAATG1429R] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI RAMA KRISHNA, BANDI, D R FOR ASSESSEE : S HRI M.V. JOSHI , A R DATE OF HEARING : 0 5 - 0 6 - 201 5 DATE OF PRONOUNCEMENT : 05 - 0 6 - 2015 O R D E R THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-IV, HYDERABAD DATED 18-07-2014. 2. THERE IS A DELAY OF 05 DAYS IN FILING THE APPEAL . REVENUE HAS FILED AN AFFIDAVIT SEEKING CONDONATION OF DELAY. I FIND THAT THERE IS A SUFFICIENT CAUSE FOR NOT FILING THE APPEAL IN TIME. ACCORDINGL Y, THE DELAY IS CONDONED AND APPEAL IS ADMITTED. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORDS. AT THE OUTSET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS LE SS THAN THE MONETARY LIMIT OF RS. 4 LAKHS PRESCRIBED BY THE CBDT FOR FIL ING THE APPEALS BEFORE THE TRIBUNAL, AND THE SAME, THEREFORE, IS NOT MAINT AINABLE. ALTHOUGH THE LD. DR HAS NOT DISPUTED THE FACT THAT THE TAX EFFEC T INVOLVED IN THIS I.T.A. NO. 1562/HYD/2014 :- 2 -: APPEAL OF THE REVENUE IS LESS THAN RS. 4 LAKHS, HE HAS CONTENDED THAT THE REVISED MONETARY LIMIT OF RS. 4 LAKHS FIXED BY THE CBDT VIDE INSTRUCTION NO. 5 OF 2014 ISSUED ON 10 TH JULY, 2014 FOR FILING OF THE DEPARTMENTAL APPEALS BEFORE THE TRIBUNAL IS APPLICA BLE ONLY TO THE APPEALS FILED ON OR AFTER 10 TH JULY, 2014. HE HAS CONTENDED THAT SINCE THE PRESENT APPEAL WAS FILED BY THE DEPARTMENT ON 0 9-10-2014, THE REVISED MONETARY LIMIT OF RS. 4 LAKHS IS NOT APPLIC ABLE TO THE SAME. WE HAVE CONSIDERED SIMILAR CONTENTIONS OF THE REVENUE IN THE CASE OF ITO VS. SRI SANTHOSHI TRANSPORT, YELLANDU (KHAMMAM DIST RICT) IN ITA NO. 615/HYD/2013 FOR ASSESSMENT YEAR 2006-07, AND DECID ED THE ISSUE RELATING TO THE APPLICABILITY OF THE CBDT INSTRUCTI ON NO. 5 OF 2014 ISSUED ON 10 TH JULY, 2014 IN RESPECT OF APPEALS FILED PRIOR TO 10 -07-2014, AGAINST THE DEPARTMENT VIDE PARA 2 OF OUR ORDER DAT ED 23-02-2015, WHICH READS AS FOLLOWS: 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORDS. AS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET, THE TAX EFFECT INVOLVED I N THIS APPEAL OF THE REVENUE IS LESS THAN THE MONETARY LIMIT OF RS.4 LA KHS PRESCRIBED BY THE CBDT FOR FILING THE APPEALS BEFORE THE TRIBUNAL, A ND THE SAME, THEREFORE, IS NOT MAINTAINABLE. ALTHOUGH THE LEARNED DEPARTMENTA L REPRESENTATIVE HAS NOT DISPUTED THE FACT THAT THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS LESS THAN RS.4 LAKHS, HE HAS CONTENDED THAT THE REVISED MONETARY LIMIT OF RS.4 LAKHS FIXED BY THE CBDT VID E INSTRUCTION NO.5 OF 2014 ISSUED ON 10 TH JULY, 2014 FOR FILING OF THE DEPARTMENTAL APPEALS BEFORE THE TRIBUNAL IS APPLICABLE ONLY TO THE APPE ALS FILED ON OR AFTER 10TH JULY, 2014. HE HAS CONTENDED THAT SINCE THE PRESEN T APPEAL WAS FILED BY THE DEPARTMENT ON 4.7.2013, THE REVISED MONETARY L IMIT OF RS. 4 LAKHS IS NOT APPLICABLE TO THE SAME. IN THIS REGARD, THE LE ARNED COUNSEL FOR THE ASSESSEE HAS RELIED ON THE DECISION OF THE KOLKATA BENCH OF THE TRIBUNAL IN THE CASE OF ITO, WARD 3, MURSHIDABAD V/S. NABIKCHU DDIN SK. RENDERED VIDE ITS ORDER DATED 12.8.2014 PASSED IN ITA NO.34 0/KOL/2012, WHEREIN A SIMILAR ARGUMENT RAISED ON BEHALF OF THE DEPARTM ENT WAS REJECTED BY THE TRIBUNAL RELYING INTER ALIA ON THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF SURESHCHADNRA DURGA PRASAD KH ATOD(HUF) (253 CTR 492)(GUJ), WHEREIN IT WAS HELD, KEEPING IN VIEW TH E MAIN OBJECTIVE OF THE INSTRUCTION ISSUED BY THE CBDT TO REDUCE THE PENDI NG LITIGATION WHERE THE TAX EFFECT IS CONSIDERABLY LOW OR SMALL, THAT THE SAME WOULD APPLY TO PENDING APPEALS ALSO. KEEPING IN VIEW THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF NABIKCHUDDIN SK.(SUPRA), WE HOLD THAT THE PRESENT APPEAL FILED BY THE DEPARTMENT INVOLVI NG A TAX EFFECT OF LESS I.T.A. NO. 1562/HYD/2014 :- 3 -: THAN THE MONETARY LIMIT OF RS.4 LAKHS FIXED BY THE CBDT IN ITS INSTRUCTION NO.5 OF 2014 DATED 10TH JULY, 2014 FOR FILING OF A PPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL, IS NOT MAINTAINABL E. THE SAME IS ACCORDINGLY DISMISSED. KEEPING IN VIEW THE CONSISTENT VIEW TAKEN BY THE CO ORDINATE BENCHES OF THIS TRIBUNAL, I HOLD THAT THE PRESENT APPEAL FILED BY THE DEPARTMENT INVOLVING A TAX EFFECT OF LESS THAN THE MONETARY LI MIT OF RS. 4 LAKHS FIXED BY THE CBDT IN ITS INSTRUCTION NO. 5 OF 2014 DATED 10TH JULY, 2014 FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIB UNAL, IS NOT MAINTAINABLE. THE SAME IS ACCORDINGLY DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT AT THE CONCLUSI ON OF HEARING ON THE APPEAL ON 5 TH JUNE, 2015. SD/- (V. DURGA RAO) JUDICIAL MEMBER HYDERABAD, DATED 5 TH JUNE, 2015 TNMM COPY TO : 1. DY. DIRECTOR OF INCOME TAX (E)-I, 3 RD FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. M/S. GELLI NARAYANA CHETTY TRUST, 5-2-22, ADARSH NAGAR, HYDERABAD. 3. CIT(APPEALS)-IV, HYDERABAD. 4. DIRECTOR OF INCOME TAX (EXEMPTIONS), HYDERABAD 5. D.R. ITAT, HYDERABAD