Income tax Officer,Ward- 4(1), Nagpur V. M/s ChandakElectric Company, Nagpur

ITA 219/NAG/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3915 (ITAT-NAGPUR)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 12-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY MARATHE ACIT
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR E-BENCH, NAGPUR (THROUGH VIDEO CONFERENCE AT MUMBAI) BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTAT MEMBER I.T.A. NO.219/NAG/2012 ASSESSMENT YEAR: 2007-2008 INCOME TAX OFFICER, WARD 4(1), 3 RD FLOOR, SARAF CHAMBERS, NAGPUR. VS M/S. CHANDAK ELECTRIC COMPANY, CHANDAK KOTHI, SUBHASH ROAD, NAGPUR 18. PAN: AAAFC 6299 H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ABHAY MARATHE, ACIT RESPONDENT BY : SHRI VIJAY CHANDAK, ADVOCATE DATE OF HEARING: 5.3.2013 DATE OF ORDER: 05.4.2013 O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 12.6.2012 IS AG AINST THE ORDER OF CIT (A)- II, NAGPUR DATED 10.2.2012 FOR THE ASSESSMENT YEAR 20 07-2008. 2. IN THIS APPEAL, REVENUE RAISED THE ONLY GROUND WH ICH READS AS UNDER: WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LD CIT (A) ERRED IN ALLOWING THE DEDUCTION OF RS. 8,14,880/- U /S 40(A)(IA) OF THE IT ACT, 1961, OBSERVING THAT THE AGREEMENTS ARE EMPLOY MENT AGREEMENTS AND NOT CONTRACT. 3. AS PER THE INSTRUCTIONS ISSUED BY THE CBDT, MINI MUM MONETARY LIMIT IS FIXED FOR FILING THE APPEAL BEFORE THE TRIBUNAL. IN THE PRESENT CASE, QUANTUM OF PENALTY IS RS. 2,44,464/- WHICH IS BELOW RS. 3 LAKHS. THE C.B .D.T. HAS ISSUED INSTRUCTIONS TO ALL THE CHIEF COMMISSIONERS/COMMISSIONERS THAT WHERE TH E TAX EFFECT IS LESS THAN RS. 3 LAKHS, THEN THE APPEAL SHOULD NOT BE FILED IN THE T RIBUNAL. MOREOVER, INSTRUCTIONS ISSUED BY THE CBDT PUTTING CEILING FOR APPROACHING THE TRIBUNAL HAS BEEN CONSIDERED BY HONBLE HIGH COURT OF BOMBAY IN THE CASE OF CIT VS. PITHWA ENGINEERING 276 ITR 519 AND HELD THAT INSTRUCTION IS APPLICABLE TO PEND ING APPEALS ALSO. MOREOVER, IN THE CASE OF MADHUKAR K. INAMADAR 318 ITR 149 (BOM) THEIR LORDSHIPS HAVE HELD THAT THE CIRCULAR NO.3 OF THE CBDT DATED 09.01.2011 IS A PPLICABLE TO THE APPEALS PENDING 2 FOR ADMISSION OR FOR FINAL DISPOSAL. WE, THEREFORE , RESPECTFULLY FOLLOWING THE DECISIONS OF THE HONBLE JURISDICTIONAL HIGH COURT, CITED SUPRA, DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF APRIL, 2013. SD/- SD/- (R.K. GUPTA) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE : 05.4.2013 AT :MUMBAI OKK COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (A), CONCERNED. 4. THE CIT CONCERNED. 5. THE DR NAGPUR, BENCH, NAGPUR. 6. GUARD FILE. // TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI