ACIT CIR 1, THANE V. EAGLE ENTERPRISES, THANE

ITA 1951/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 101000 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 21-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UDAYA BHASKAR JAKIE
• Assessee Lawyers: JAYANT BHATT SANJIV G BRAHME
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER AND RAM L AL NEGI, JUDICIAL MEMBER / I .T.A. NO. 1951/M/2014 ( / ASSESSMENT YEAR : 2008 - 09 THE ACIT, CIRCLE - 1, ASHAR I.T. PARK, 6 TH FLOOR, B WING, R OOM NO. 22. ROAD NO. 16, WAGLE INDUSTRIAL ESTATE, THANE (W) - 400 604 / VS. M/S. EAGLE ENTERPRISES, SHOP NO. 3, SARGAM CHS, ANAJI SUNDER ROAD, NR. AHILYADEVI GARDEN, CHARAI, THANE(W) - 400 602 ./ ./ PAN/GIR NO. : AABFE 9415F ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI UDAYA BHASKAR JAKIE / RESPONDENT BY: SHRI JAYANT BHATT SANJIV G. BRAHME / DATE OF HEARING : 1 0 .0 9 .2015 / DATE OF PRONOUNCEMENT : 1 0 .0 9 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A) - II , THANE DT. 6.01.2014 PERTAINING TO A.Y. 200 8 - 0 9 . 2. THE REVENUE HAS RAISED FOLLOWING GROUND OF APPEAL: WHETHER ON THE FACTS OF THE CASE AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ALLOWED THE ITA. NO. 1951/M/2014 2 APPEAL OF THE ASSESSEE WITHOUT APPRECIATING THE FACT THAT THE AO HAS CORRECTLY ADDED THE DIFFERENCE OF TDS CERTIFICATES AMOUNTING TO RS. 7,61, 177/ - IN THE ORDER PASSED U/S. 154. 3. AT THE VERY OUTSET, LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE TOTAL TAX EFFECT IN THE PRESENT APPEAL IS TO THE TUNE OF RS. 2,35,390 / - . THE LD. COUNSEL FURTHER SUBMITTED THAT SINCE THE TAX EFFECT IS LESS THA N RS. 3,00,000/ - , THE APPEAL BY THE REVENUE IS NOT MAINTAINABLE. 4. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY CONCEDED THAT TAX EFFECT IS LESS THAN RS. 3,00,000/ - . 5. WE HAVE HEARD THE LD DR AS WELL AS THE L D . AR OF THE ASSESSEE AND CONSIDERING THE RELE VANT MATERIAL ON RECORD. AT THE OUTSET, WE NOTE THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.3 LAKHS AS PER THE LIMIT PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO.3 OF 2011 FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL. IN SUCH A SIT UATION THE APPEAL FILED IN CONTRAVENTION OF SUCH LIMIT CANNOT BE SUSTAINED. THIS VIEW IS DULY SUPPORTED BY THE DECISION IN THE CASE OF ACIT VS. SATISH CHANDRA, 10 SOT 383. SIMILAR VIEW HAS BEEN TAKEN BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO. 254 ITR 565, WHEREIN IT HAS BEEN HELD THAT THE TAX EFFECT INVOLVED IN THE APPEAL FILED BY THE REVENUE BEING LESS THAN THE MONETARY LIMIT AS PRESCRIBED IN BOARD CIRCULAR, THE SAME IS NOT MAINTAINABLE. 6. ACCORDINGLY, IN VIEW THE CIRCULAR OF 2011 AS APPLICABLE TO THE APPEALS FILED EARLIER, THE HONBLE JURISDICTIONAL HIGH COURT HAS HELD IN THE CASE OF CIT VS MADHUKAR K INAMDAR (HUF) REPORTED IN 318 ITR 149 THAT THE APPEALS FILED BY THE REVENUE PRIOR TO THE CIRCULAR SHALL ALSO BE GOVERNED THE MONETARY LIMIT OF THIS CIRCULAR. SIMILAR VIEW HAS BEEN REITERATED BY THE MUMBAI BENCH OF THE TRIBUNAL VIDE ORDER DATED ITA. NO. 1951/M/2014 3 29.04.2011 IN ITO VS INDIA SAFETY VAULTS LTD., IN ITA NO. 648 - 651/M/2010. RESPECTFULLY FOLLOWING THE PRECEDENTS, WE HOLD THAT THE APPEAL FILED BY THE REVENUE CANNOT BE TAKEN UP FOR DECISION ON MERITS AS THE TAX EFFECT IN THIS CASE IS ADMITTEDLY LESS THAN RS. 3.00 LACS. WE, THEREFORE, DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. 7. IN THE RESULT, THE APPEAL FILED BY THE RE VENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 10 TH SEPTEMBER , 2015 SD/ - SD/ - ( RAM L AL NEGI ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 10 TH SEPTEMBER , 2015 . . ./ RJ , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI