A.C.I.T. CIRCLE 7(2), MUMBAI V. SBM CHEMICALS & INSTRUMENTS PVT. LTD., MUMBAI

ITA 2265/MUM/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3755 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 12-11-2014
• Assessment Year: 2001-2002
• Appeal Filed On: 04-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAILASH GAIKWAD
• Assessee Lawyers: NEHA BARVE
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI SANJAY ARORA , A M AND SHRI PAWAN SING, JM ./ I.T.A. NO. 2265/MUM/2012 ( / ASSESSMENT YEAR: 2001 - 02 ) ASST. CI T - 7(2), ROOM NO. 624, M. K. RDL., MUMBAI - 400 020 / VS. SBM CHEMICALS & INSTRUMENTS P. LTD., 701 - D, POONA CHAMBERS, SHIVSAGAR ESTATE, WORLI, MUMBAI - 18 ./ ./ PAN/GIR NO. AABCS 4417 M ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI KAILASH GAIKWAD / RESPONDENT BY : MS. NEHA BARVE / DATE OF HEARING : 11.5.2016 / DATE OF PRONOUNCEMENT : 11.5.2016 / O R D E R PER SANJAY AR ORA, A. M.: THIS IS AN A PPEAL BY THE REVENUE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 13 , MUMBAI (CIT(A) FOR SHORT) DATED 20.12.2011 , ALLOWED THE A SSESSEES APPEAL CONTESTING ITS ASSESSMENT U/S.143(3) R/W S. 254 OF THE INCO ME TAX ACT, 1961 (THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR (A.Y.) 2001 - 02 VIDE ORDER DATED 30.10.2009. 2. AT THE VERY OUTSET, IT WAS SUBMITTED BY THE LD. AUTHORIZED REPRESENTATIVE (AR), THE ASSESSEES COUNSEL, MS. NEHA BARVE , THAT THE TAX EFFECT OF THE REVENUES APPEAL IS BELOW RS.10 LACS, AND WHICH IS THEREFORE NOT MAINTAINABLE U/S. 268A OF THE ACT IN VIEW OF THE RECENT INSTRUCTION ISSUED BY THE BOARD (INSTRUCTION NO. 21 OF 2015 DATED 2 ITA NO. 2265/MUM/2012 (A.Y.2001 - 02) ASST. CIT VS. SBM CHEMICALS & INSTRUMENTS P. LTD. 10.12.2015 (F. NO. 279/MISC/142/2007 - IT(PT)). THE LD. DEPARTMENTA L REPRESENTATIVE (DR) FAIRLY CONCEDED TO THE SAID TAX EFFECT OF THE INSTANT APPEAL BEING WELL BELOW RS.10 LACS, THE CLAIM UNDER DISPUTE - SINCE ALLOWED BY THE LD. CIT(A), BEING FOR RS . 15.05 LACS . THE SAME ACCORDINGLY IS NOT MAINTAINABLE U/S. 268A OF THE A CT, REQUIRING THE APPELLATE AUTHORITIES TO HAVE REGARD TO THE MONETARY LIMIT PRESCRIBED BY THE BOARD, WHICH PER ITS CIRCULAR DATED 10.12.2015 (SUPRA) IS AT RS.10 LACS FOR THE APPELLATE TRIBUNAL, I.E., FOR APPEALS PREFERRED BY THE REVENUE. THE SAME IS THERE FORE DISMISSED AS INCOMPETENT. WE MAY THOUGH CLARIFY THAT IT SHALL BE COMPETENT FOR THE ASSESSING OFFICER TO, WHILE GIVING APPEAL EFFECT TO THIS ORDER, OR FOR THAT MATTER TO THAT OF THE FIRST APPELLATE AUTHORITY, WHICH STANDS UPHELD IN RESULT, TO WITHDRAW THE DEPRECIATION ON THE IMPUGNED SOFTWARE EXPENSES, SINCE ALLOWED, FOR THE CURRENT AND SUBSEQUENT YEARS. WE DECIDE ACCORDINGLY. 3. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MA Y 11 , 201 6 SD / - SD/ - ( PAWAN SINGH ) (S ANJAY ARORA) / J UDICIAL MEMBER / A CCOUNTANT MEMBER MUMBAI ; DATED : 11 . 0 5 .201 6 . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE 3 ITA NO. 2265/MUM/2012 (A.Y.2001 - 02) ASST. CIT VS. SBM CHEMICALS & INSTRUMENTS P. LTD. / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI