ACIT, Trichy V. Wellshine Investments and Financial Services, Trichy

ITA 1868/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90315 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-04-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 30-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN IRS
• Assessee Lawyers: S KEERTHIRAJAN
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , ! ' , # $% BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER & SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.1868/MDS/2014 ( / ASSESSMENT YEAR : 2007-2008) THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I (1) TRICHY. ( &' /APPELLANT) VS M/S. WELLSHINE INVESTMENTS AND FINANCIAL SERVICES LTD, B-101, HARIHAR RESIDENCY 20, MANNARPURAM MAIN ROAD, MANNARPURAM, TRICHY 620 020. [PAN: AAACW 0837C] ( '(&' /RESPONDENT) / APPELLANT BY : SHRI. N. MADHAVAN, IRS, JCIT. / RESPONDENT BY : SHRI. S. KEERTHIRAJAN, C.A. /DATE OF HEARING : 13.04.2015 /DATE OF PRONOUNCEMENT : 13.04.2015 ) / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), TIRUCHIRA PALLI, DATED 27.03.2014 FOR THE ASSESSMENT YEAR 2007-2008. 2. IN THIS APPEAL, THE REVENUE RAISED THE FOLLOWING G ROUNDS:- I.T.A.NO.1868/MDS/2014 :- 2 -: (I) THE CIT(A) ERRED IN DELETING THE ADDITION U/S .2(22) (E) BY RELYING ON THE CASE LAWS WHICH ARE NOT APPLICABL E TO THE INSTANT CASE. (II) THE CIT(A) FAILED TO APPRECIATE THAT THE DEFI NITION OF THE DIVIDEND UNDER THE INCOME TAX ACT IS INCLUSIVE AND NOT EXHAUSTIVE. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. AS SEEN FROM THE ORDER OF CIT(A), THE TAX EFFECT FR OM THIS APPEAL IS LESS THAN D4,00,000/- AS THE DELETION OF ADDITION IS D 1 2,00,000/- WHICH IS LESS THAN MONETARY LIMITS FIXED BY THE CBDT TO FILE APPE AL BY THE REVENUE AS PER CBDT CIRCULAR NO.5/2014, DATED 10 TH JULY, 2014 WHEREIN THE MONETARY LIMIT FIXED AT D4,00,000/- TO FILE APPEAL BEFORE T HE TRIBUNAL. THE LD DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE BOAR DS CIRCULAR NO.5/2014 ISSUED ON 10.7.2014 REVISING THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL WILL APPLY TO THE APPEALS FILED ON OR AFTER 10.07.2014 AND NOT TO THE APPEAL FILED PRIOR TO 10.07.2014. THUS, LD. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY OPPOSED THE ARGUMENT OF THE ASSESSEE AND STATED THAT THIS I NSTRUCTION IS PROSPECTIVE AND NOT RETROSPECTIVE. IN OUR OPINION, AS HELD BY THE KOLKATA BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. SUJIT PANDEY VIDE ORDER DATED 10.09.2014 IN ITA NO.1914(KOL)/2012, THE CBDT INSTR UCTION NO.5/2014, DATED 10.7.2014 HAD REVISED THE MONETARY LIMIT FOR FILING AN APPEAL TO TRIBUNAL TO D4,00,000/- AND THE SAME WOULD BE APPLI CABLE TO PENDING APPEALS ALSO FOR THE REASON THAT THE SAME IS EXACTL Y IDENTICAL TO EARLIER INSTRUCTIONS ISSUED BY CBDT, THEREFORE, WHERE TAX E FFECT WAS LESS THAN I.T.A.NO.1868/MDS/2014 :- 3 -: D4,00,000/- APPEAL WAS NOT MAINTAINABLE. BEING SO, THE REVENUE AUTHORITIES ARE PRECLUDED FROM FILING OF APPEAL IN THIS CASE ALSO. ACCORDINGLY, THIS APPEAL IS DISMISSED AS UN-ADMITTE D. 4. IN THE RESULT, THE APPEAL FILED BY THE RE VENUE IS DISMISSED. ORDER PRONOUNCED ON MONDAY, THE 13 TH DAY OF APRIL, 2015, AT CHENNAI. SD/- SD/- ( ! ' ) (CHALLA NAGENDRA PRASAD) # / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER !' /CHENNAI. #$ /DATED:13 .04.2015. KV $% &' (' /COPY TO: 1. ) APPELLANT 2. / RESPONDENT 3. * ( )/CIT(A) 4. * /CIT 5. '+, - /DR 6. ,. / /GF.