ITO, CHENNAI V. Shri R.M.Selvaraj, CHENNAI

ITA 1870/CHNY/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57777 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 03-01-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 04-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: G VARDINI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ITA NO. 1870/MDS/2010 ASSESSMENT YEAR: 2007-08 THE INCOME-TAX OFFICER, SALARY WARD, VI(1), CHENNAI. VS. SHRI R.M.SELVARAJ, 25/107,VIJAYKRIPA APARTMENTS, MOTHILAL ST., T. NAGAR, CHENNAI 600 017. PAN ABHPS 7498 G (APPELLANT) (RESPONDENT) APPELLANT BY : DR. I. VIJAYAKUMAR, IRS, COMMISSIONER OF INCOME-TAX RESPONDENT BY : SMT. G. VAR DINI, ADVOCATE DATE OF HEARING : 3 RD JANUARY, 2012 DATE OF PRONOUNCEMENT : 3 RD JANUARY, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2007-08. THE APPEAL IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-VI AT CHENNAI D ATED - - ITA 1870/MDS/10 2 20.08.2010. THE APPEAL ARISES OUT OF THE ASSESSMEN T COMPLETED UNDER SEC.143(3) OF THE INCOME-TAX ACT, 1961. 2. IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN ` 3 LAKHS. INSTRUCTION NO.3 OF 2011 DATED 9 TH FEB.,2011 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER SEC.268A(1) OF THE INCOME-TAX ACT, 1961, HAS GIVEN DIRECTIONS NOT TO FILE APPEALS BEFORE THE INCOME-TAX APPELLATE TRIBUNAL WHERE THE TAX EFFECT DOES NOT EXCEED ` 3 LAKHS. 3. THE FIRST INSTRUCTION NO.1093 DATED 28.10.1992 I SSUED BY THE BOARD, HAD LAID DOWN SUCH LIMIT AT ` 25,000/-. THEREAFTER THROUGH INSTRUCTION NO. 1979 DATED 27.3.2000, THE SAID LIMI T WAS ENHANCED TO ` 1,00,000/-. SUBSEQUENTLY THE LIMIT WAS AGAIN INCR EASED TO ` 2 LAKHS THROUGH INSTRUCTION NO.2 DATED 24.10.2005. 4. IN THE LIGHT OF THE ABOVE EARLIER INSTRUCTIONS, WHEN THE APPEALS WERE DISPOSED OF BY THE TRIBUNAL IN LIMINE ON THE G ROUND OF NON- MAINTAINABILITY, ISSUES WERE TAKEN UP BEFORE THE HO N'BLE HIGH COURTS. THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF COMMIS SIONER OF INCOME-TAX V. CAMCO COLOUR CO. (254 ITR 565) HAS HELD THAT WHERE THE REVENUE EFFECT INVOLVED IN THE APPEAL IS BELOW THE PRESCRIBED LIMIT, - - ITA 1870/MDS/10 3 THE APPEAL IS NOT MAINTAINABLE BEFORE THE APPELLATE TRIBUNAL. THEREAFTER THE HON'BLE MADRAS HIGH COURT IN CWT VS. ANNAMALI (258 ITR 675) HELD THAT THE LIMIT PRESCRIBED IN THE LATE ST INSTRUCTION IS APPLICABLE NOT ONLY TO THE APPEALS TO BE FILED AFTE R THE ISSUE OF SUCH INSTRUCTIONS, BUT ALSO APPLICABLE TO THE PENDING AP PEALS. THIS VIEW WAS AGAIN FOLLOWED BY THE HON'BLE MADRAS HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME-TAX V. ASSOCIATED ELECTRICA L AGENCIES (295 ITR 496). THE HON'BLE BOMBAY HIGH COURT ALSO HAS H ELD THE SAME VIEW IN THE CASE OF COMMISSIONER OF INCOME-TAX V. PITHWA ENGG. WORKS (276 ITR 519) AND IN THE CASE OF COMMISSIONE R OF INCOME-TAX VS. ZOEB Y. TOPPIWALA (284 ITR 379). 5. THUS, THE COURTS HAVE CONSISTENTLY HELD THAT WHE RE THE TAX EFFECT IS LESS THAN THE PRESCRIBED LIMIT, APPEALS ARE NOT MAINTAINABLE BEFORE THE TRIBUNAL AND HAVE ALSO HELD THAT THE LAT EST SUCH INSTRUCTIONS ARE APPLICABLE EVEN TO THE PENDING APP EALS. 6. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THIS APPEAL IS NOT MAINTAINABLE BEFORE THE TRI BUNAL. ACCORDINGLY, THE APPEAL IS DISMISSED IN LIMINE. - - ITA 1870/MDS/10 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING, ON TUESDAY, THE 3 RD OF JANUARY, 2012 AT CHENNAI. SD/- SD/- (GEORGE MATHAN) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 3 RD JANUARY, 2012. MPO* COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.