THE ITO WD 20(2)(2), MUMBAI V. THE MAXAMANN COMPUTER INDUSTRIES, MUMBAI

ITA 2458/MUM/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7265 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 06-01-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 09-04-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRENDRA OJHA; S S RANA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.K.GUPTA, JM AND SHRI R.S.SYAL, AM ITA NO.2458/MUM/2008 : ASST.YEAR 2001-2002 THE INCOME TAX OFFICER WARD 20(2)(2) MUMBAI. VS. M/S.MAXMANN COMPUTER INDUSTRIES 189, NANDRAJ, 1 ST FLOOR, S.V.ROAD ANDHERI (WEST) MUMBAI 400 058. PA NO.AAAFM2872Q. (APPELLANT) (RESPONDENT) APPELLANT BY : S/SHRI S.S.RANA & VIRENDRA OJHA RESPONDENT BY : --- NONE --- O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER PA SSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 25.01.2008 IN RELATION T O THE ASSESSMENT YEAR 2001- 2002. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPI TE SERVICE OF NOTICE. THEREFORE, WE ARE PROCEEDING TO DISPOSE OFF THE APPEAL EX PARTE QUA THE ASSESSEE AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE. 2. THE TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REVENUE IS BELOW RS.2 LACS AS ADMITTED BY THE LD. DR. THE CBDT HAS ISSUED INST RUCTIONS FROM TIME TO TIME ADVISING THE FIELD FORMATIONS NOT TO FILE APPEALS B EFORE THE APPELLATE TRIBUNAL OR THE HIGH COURTS, IF THE REVENUE EFFECT INVOLVED IN THOSE MATTERS ARE LESS THAN THE LIMIT PRESCRIBED IN THE INSTRUCTIONS. THE INSTRUCTI ON NO.1903 ISSUED ON 28.10.1992, HAD PRESCRIBED SUCH LIMIT AT RS.25,000. THEREAFTER IN 1979, THE SAID LIMIT WAS ENHANCED TO RS.1 LAC THROUGH THE INSTRUCTIONS DATED 27.3.2000. AGAIN IN 2005, THE CBDT REVISED THE MINIMUM TO RS.2 LACS THROUGH ITS INSTRUCTION NO.2705 ISSUED ON 24.10.2005. WHEREVER THE REVENUE EFFECT INVOLVED IN AN APPEAL IS LESS THAN RS.2 LAC PER ASSESSMENT YEAR, APPEALS ARE NOT TO BE FILED BE FORE THE APPELLATE TRIBUNAL. 3. THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO. [254 ITR 565] HAS HELD THAT THE ABOVE INSTRUCTIONS ARE BINDING O N THE DEPARTMENT AND THE ITA NO.2458/MUM/2008 M/S.MAXMANN COMPUTER INDUSTRIES. 2 APPEALS WHERE TAX EFFECT IS LESS THAN THE PRESCRIBE D LIMIT, SUCH APPEALS ARE NOT MAINTAINABLE BEFORE THE TRIBUNAL. 4. IN A SUBSEQUENT DECISION THE BOMBAY HIGH COURT I N THE CASE OF CIT VS. PITHWA ENGG. WORKS [276 ITR 519] FURTHER HELD THAT THE LATEST CIRCULAR ON THE ISSUE WILL BE APPLICABLE TO ALL THE PENDING APPEALS INCLU DING THOSE APPEALS IN WHICH THE ASSESSMENT YEARS ARE THE ASSESSMENT YEARS PRIOR TO THE LATEST CIRCULAR. THIS RULE OF RETROSPECTIVITY WAS AGAIN UPHELD BY THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. ZOEB Y.TOPIWALA [284 ITR 379], WHEREIN THE COURT HAS HELD THAT EVEN THE PENDING APPEALS HAVE TO BE CONSIDERED IN THE LIGHT OF THE T HRESHOLD LIMIT OF THE TAX EFFECT PRESCRIBED IN THE LATEST CIRCULAR. THE MADRAS HIGH COURT HAS TAKEN A SIMILAR VIEW IN THE CASE OF CWT VS. S.ANNAMALAI [258 ITR 675] . 5. IN THESE CIRCUMSTANCES, WE FIND THAT THE APPEA L FILED BY THE REVENUE BEFORE THE TRIBUNAL IS NOT MAINTAINABLE. THEREFORE, THE SAME I S DISMISSED IN LIMINE. 6. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 24 TH DAY OF MARCH 2010. SD/- SD/- ( R.K.GUPTA ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT M EMBER MUMBAI : 24 TH MARCH, 2010. DEVDAS* ITA NO.2458/MUM/2008 M/S.MAXMANN COMPUTER INDUSTRIES. 3 COPY TO : 1. THE APPELLANT. 2. THE RESPONDENTS. 3. THE CIT CONCERNED 4. THE CIT(A) - XX, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.