ACIT 9(3), MUMBAI V. SIGMAKALON INDIA P.LTD, MUMBAI

ITA 2546/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48807 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 28-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 01-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SONGATE
• Assessee Lawyers: NIKHIL RAJAN
• Keywords: Tax effect

Judgement Text

1 ITA NO.2546/MUM/2010 ASSESSMENT YEAR :2006-07. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E, MUMBAI BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER & SHRI VIJAY PAL RAO, JUDICIAL MEMBER. I.T.A. NO. 2546/MUM/2010 ASSESSMENT YEAR : 2006-07. ASSTT. COMMISSIONER OF INCOME-TAX, M/S SIGMAKALON INDIA LTD., 9(3), MUMBAI. VS. 3/4 K.R.D.N. TRUST, ESTATE, MUMBAI. OFF AAREY ROAD, GOREGAON (E), MUMBAI 400063. PAN AABCS4378K. APPELLANT. RESPONDENT. APPELLANT BY : SHRI D. SONGATE. RESPONDENT BY: SHRI NIKHIL RAJAN. O R D E R PER P.M. JAGTAP, A.M. : THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF LEARNED CIT(APPEALS)-20, MUMBAI DATED 18-01-2010 AND THE SO LITARY GROUND RAISED BY THE REVENUE THEREIN READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS.1,0 0,000/-, RS.2,00,000/- & RS.4,00,000/- OUT OF EXPENSES CLAIMED ON REPAIRS & MAINTENANCE MISCELLANEOUS ITEMS & FREIGHT AND FORWARDING RESPEC TIVELY WITHOUT APPRECIATING THE FACTS THAT THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS FAILED TO FURNISH THE COMPLETE EVIDENCE S IN RESPECT OF THESE EXPENSES WITH SUPPORTING VOUCHERS/BILLS. 2 ITA NO.2546/MUM/2010 ASSESSMENT YEAR :2006-07. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS NOTED AT THE OUTSET FROM THE GROUND RAISED BY THE REVENUE, THE TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REVENUE IS LESS THAN RS.3 LAKHS AND THIS POSITION HAS NOT BEEN DISPUTED EVEN BY THE LEARNED DR. AS PER THE CBDT INSTRUCTION NO. 3 OF 2011 ISSUED ON 09-02-2011, THE MONETARY LIMIT FOR FILING OF AN APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL HAS BE EN REVISED TO RS.3 LAKHS. AS DECIDED BY THE CBDT, APPEALS SHALL NOT BE FILED BY THE DEPARTMENT IN CASES WHERE TAX EFFECT DOES NOT EXCEED RS.3 LAKHS. IN THE CASE OF CIT VS. MADHUKAR INAMDAR (HUF) 318 ITR 149, THE HONBLE BOMBAY HIGH COURT HA S HELD THAT CBDT INSTRUCTION FIXING ANY MONETARY LIMIT FOR FILING TH E APPEAL WOULD APPLY EVEN FOR THE PENDING CASES. 3. KEEPING IN VIEW THE SAID DECISION OF HONBLE JUR ISDICTIONAL HIGH COURT AND THE BOARD INSTRUCTION NO. 3 OF 2011 DATED 09-02-201 1, WE HOLD THAT THE PRESENT APPEAL FILED BY THE DEPARTMENT INVOLVING TAX EFFECT OF LESS THAN RS.3 LAKHS IS NOT MAINTAINABLE. THE SAME IS, THEREFORE, DISMISSED AT THE THRESHOLD. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON THIS 13 TH DAY OF MAY, 2011. SD/- SD/- (VIJAY PAL RAO) (P.M. JAGTAP ) JUDICIAL MEMBER ACCOUNTAN T MEMBER MUMBAI, DATED: 13 TH MAY, 2011. WAKODE 3 ITA NO.2546/MUM/2010 ASSESSMENT YEAR :2006-07. COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, E-BENCH (TRUE COPY) BY ORDE R ASSTT. REGIST RAR, ITAT, MUMBAI BEN CHES