ACIT, Meerut V. M/s. Meerut Oil & Chemicals (P) Ltd., Meerut

ITA 2188/DEL/2011

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7015 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 26-09-2011
• Assessment Year: misc
• Appeal Filed On: 03-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: O P SAPRA
• Keywords: Depreciation; Wrong claim; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI SHAMIM YAHYA ITA NO. 2188/DEL/2011 ASSTT. YR: 1988-89 ACIT, CIRCLE-1, VS. M/S MEERUT OIL & CHEMICALS ( P) LTD., NEW DELHI. W.K. ROAD, MEERUT. PAN/GIR NO. (APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI R.S. NEGI SR. DR RESPONDENT BY : SHRI O.P. SAPRA ADV. O R D E R PER R.P. TOLANI, J.M : THIS IS REVENUES APPEAL AGAINST CIT(A)S ORDER DATED 17-2-2011 RELATING TO A.Y. 1988-89. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET CONTENDS THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL CASE IS LESS THAN 3 LACS AND THEREFORE IN VIEW OF CBDT INSTRUCTION, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AND MAY BE REJECTED AS SUCH. 3. LEARNED DR, HOWEVER, POINTS OUT THAT THERE IS A MISTAKE IN THE ORDER OF AO IN THE COMPUTATION OF INCOME. THE AO ADDED BACK DEPRECIATION OF RS. 5,35,521/- AND BOGUS CLAIM OF LOSS AT RS. 1,27,035/ -, THEREFORE, IF THIS MISTAKE IS CORRECTED, TAX EFFECT MAY BE MORE. 4. LEARNED COUNSEL FOR THE ASSESSEE IN REPLY CONTEN DS THAT AS PER BOARDS CIRCULAR, THE TAX EFFECT IS TO BE CALCULATED BASED ON THE GROUNDS OF APPEAL. BESIDES, THE ALLEGED MISTAKE EVEN IF EXIST, THE SAM E CAN NOT BE CORRECTED NOW, AS THE ORDER WAS PASSED ON 5-3-1990. 2 5. WE HAVE HEARD RIVAL CONTENTIONS. THE TAX EFFECT ON THE GROUNDS AS RAISED BY THE REVENUE IS LESS THAN RS. 3 LACS, THER EFORE, WE ARE UNABLE TO GO BEYOND THE FIGURES RAISED BY THE REVENUE IN THE GRO UNDS OF APPEAL. 6. AS PER CBDT INSTRUCTION NO. 1979 DATED 27-3-200 0; INSTRUCTION NO. 2 OF 2005 DATED 24-10-2005; AND RECENT INSTRUCTION NO. 3 DATED 9 TH FEBRUARY 2011, DEPARTMENTAL APPEALS BEFORE THE ITAT WOULD N OT BE MAINTAINABLE IF THE TAX EFFECT IS BELOW RS. 3 LACS. SINCE THE TAX E FFECT INVOLVED IN THE PRESENT APPEAL IS BELOW RS. 3 LAKHS, THEREFORE, IN VIEW OF THE INSTRUCTIONS OF THE CBDT, REFERRED TO ABOVE, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE. IN ARRIVING AT SUCH CONCLUSION WE ARE ALSO FORTIFIED B Y THE RATIO OF DECISIONS IN THE FOLLOWING CASES: (1) CIT VS. PRADEEP KUMAR GUPTA (2007) 207 CTR (DEL) 11 5; (2) ACIT VS. SATISH CHAND JAIN (2006) 10 SOT 383 (DEL.) ; (3) ACIT VS. DOON VALLEY MOTORS (2006) 10 SOT 525 (DEL. ); (4) JCIT VS. DEV RAJ AGARWAL (2005) 92 TTJ (LUCKNOW) 43 6; (5) ITA NO. 3839/D/04 & C.O. 28/DEL/07 ITO VS. M/ S M.J. WARE HOUSING (P) LTD.& VICE VERSA DATED 31-8-2007. 7. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 26-09-2011. SD/- SD/- ( SHAMIM YAHYA ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 26-09-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 3