ACIT, CHENNAI V. M/s. Shriram Computer Leasing, CHENNAI

ITA 1851/CHNY/2009

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1188 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-01-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 09-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SRINIVAS
• Assessee Lawyers: V D GOPAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AN D SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO. 1849/MDS/09 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF INCOME-TAX, BUSINESS CIRCLE-II, CHENNAI. V. M/S. SHRIRAM HIRE PURCHASE AND INVESTMENTS, MOOKAMBIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AAAPS2593J) I.T.A. NO. 1850/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF V. M/S. SHRIRA M CONSUMER DURABLE INCOME-TAX, BUSINESS CIRCLE-II, LEASING, CHENNAI. MOOKAMBIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AAAFS2601R) I.T.A. NO. 1851/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF V. M/S. SHRIRA M COMPUTER INCOME-TAX, BUSINESS CIRCLE-II, LEASING, CHENNAI. MOOKAMBIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AAAFS2594R) I.T.A. NO. 1853/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF V. M/S. SHRIR AM GLOBAL FINANCE INCOME-TAX, BUSINESS CIRCLE-II, CHENNAI. MOOKAM BIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AAAFS2598D) I.T.A. NOS. 1849, 1850,1851,1853, 1860, 1862, 1863 & 1869/MDS/09 2 I.T.A. NO. 1860/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF V. M/S. SHRIRA M FINANCIAL INCOME-TAX, BUSINESS CIRCLE-II, CHENNAI. SERVICE S, MOOKAMBIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AAAFS1441B) I.T.A. NO. 1862/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF V. M/S. SHRI BAIRAVI ENTERPRISES, INCOME-TAX, BUSINESS CIRCLE-II, CHENNAI. MOOKAMB IKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AACFB0785B) I.T.A. NO. 1863/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF V. M/S. SHRI P ALLAVI FINANCE AND INCOME-TAX, BUSINESS CIRCLE-II, CHENNAI. INVESTM ENTS, MOOKAMBIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AAAFP8758L) AND I.T.A. NO. 1869/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF V. M/S. SHRI R AM FINANCE INCOME-TAX, BUSINESS CIRCLE-II, CHENNAI. MOOKAMB IKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. (PAN : AAAFP8758L) (APPELLANT) (RESPONDENTS) I.T.A. NOS. 1849, 1850,1851,1853, 1860, 1862, 1863 & 1869/MDS/09 3 APPELLANT BY : SHRI B. SRINIVAS RESPONDENTS BY : SHRI V.D. GOPAL O R D E R PER BENCH: THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST T HE ORDERS PASSED BY THE LEARNED CIT(APPEALAS)-VI, CHENNAI IN APPEAL NOS . 136/08-09 DATED 21-04- 2009, 154/08-09 DATED 27-04-2009, 133/08-09 DATED 2 1-04-2009, 137/08-09 DATED 21-04-2009, 134/08-09 DATED 21-04-2009, 151/0 8-09 DATED 27-04-2009, 149/08-09 DATED 27-04-2009 & 132/08-09 DATED 21-04 -2009 RESPECTIVELY FOR THE ASSESSMENT YEAR 2006-07. AS COMMON ISSUE IS INVOL VED IN ALL THESE APPEALS, THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. SHRI B. SRINIVAS, SR. DR. REPRESENTED ON BEHALF OF THE REVENUE AND SHRI V. D. GOPAL, ADVOCATE REPRESENTED ON BEHALF OF THE ASS ESSEE S. 3. THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASS ESSEES SUBMITTED THAT FOLLOWING ARE THE DISPUTED INCOME IN RESPECT OF THE ASSESSEES HEREIN : APPEAL NOS. DISPUTED INCOME. ITA NO. 1849/MDS/09 ` 78,413/- ITA NO. 1850/MDS/09 ` 78,413/- ITA NO. 1851/MDS/09 ` 78,413/- ITA NO. 1853/MDS/09 ` 78,413/- ITA NO. 1860/MDS/09 ` 90,174/- ITA NO. 1862/MDS/09 ` 1,51,814/- ITA NO. 1863/MDS/09 ` 1,59,185/- ITA NO. 1869/MDS/09 ` 78,413/- I.T.A. NOS. 1849, 1850,1851,1853, 1860, 1862, 1863 & 1869/MDS/09 4 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE THE TAX EFFECT IN THESE CASES IS BELOW THE LIMIT PRESCRIBED BY THE CB DT INSTRUCTION NO. 2 OF 2005, THE APPEALS OF THE REVENUE ARE LIABLE TO BE DISMISS ED. THE LD. DR DID NOT MAKE ANY SERIOUS OBJECTION. 5. WE HAVE CONSIDERED THE SUBMISSIONS AND FIND THAT THE TAX EFFECT IN THESE CASES IS BELOW RS.2,00,000/-, FIXED BY THE CENTRAL BOARD OF DIRECT TAXES FOR FILING APPEALS BEFORE INCOME TAX APPELLATE TRIBUNAL VIDE I NSTRUCTION NO.2 OF 2005 DATED 24 TH OCTOBER, 2005. THE REVENUE HAS NOT MADE OUT A CAS E TO ESTABLISH THAT THE ISSUE FALLS WITHIN THE EXCEPTIONS PROVIDED IN THE SAID CIRCULAR/ INSTRUCTION. 6. 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 TH E PROPOSITION THAT DIRECTIONS ISSUED BY THE BOARD ARE BINDING ON THE DEPARTMENT A ND APPEALS FILED WHERE THE TAX EFFECT IS LESS THAN THAT PROVIDED IN THE SAID I NSTRUCTION IS NOT MAINTAINABLE. I.T.A. NOS. 1849, 1850,1851,1853, 1860, 1862, 1863 & 1869/MDS/09 5 7. HENCE, IN VIEW OF THE SAID CIRCULAR AND RESPECT FULLY FOLLOWING THE PRECEDENT FROM HONBLE JURISDICTIONAL HIGH COURT, C ITED SUPRA, THE APPEALS ARE DISMISSED IN LIMINE. 8. IN THE RESULT, THIS APPEALS BY THE REVENUE STAND DISMISSED IN LIMINE. 9. THE ORDER WAS PRONOUNCED IN THE COURT ON 13-01-2 011. SD/- SD/- (ABRAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 13 TH JANUARY, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE