ITO (OSD), CHENNAI V. Krishnaswamy Educational Trust, Tiruvannamalai

ITA 260/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5238 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2002-2003
• Appeal Filed On: 17-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P B SEKARAN
• Assessee Lawyers: V SRINIVASAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AN D SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 260/MDS/2011 ASSESSMENT YEAR : 2002-03 THE INCOME-TAX OFFICER (OSD), EXEMPTIONS-III, CHENNAI. V. M/S. KRISHNASWAMY EDUCATIONAL TRUST, NO.40.E/5, VETTAVALAM ROAD, THIRUVANNAMALAI DISTRICT, PIN : 606 601. (PAN : AAGFK7162H) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.B. SEKARAN RESPONDENT BY : SHRI V. SRINIVASAN O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(APPEALS)-XII, CHENNAI IN APPEAL NO. 247/09-10 D ATED 24.11.2010 FOR THE ASSESSMENT YEAR 2002-03. I.T.A. NO.260/MDS/2011 2 2. SHRI P.B. SEKARAN, LEARNED CITR-DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI V. SRINIVASAN REPRESENTED ON BEHA LF OF THE ASSESSEE . 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASS ESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT PRESCRIBED B Y THE CBDT INSTRUCTION NO. 3/ 2011(F.NO. 279/MISC.142/2007-ITJ) DATED 09-02-2011. THEREFORE, THE APPEAL OF THE REVENUE SHOULD BE DISMISSED. 4. WE HAVE CONSIDERED THE SUBMISSIONS AND FIND THAT THE TAX EFFECT IN THIS CASES IS BELOW RS.3,00,000/-, FIXED BY THE CENTRAL BOARD OF DIRECT TAXES FOR FILING APPEALS BEFORE INCOME TAX APPELLATE TRIBUNAL VIDE I NSTRUCTION NO.3/2011 (F.NO. 279/MISC.142/2007-ITJ) DATED 09-02-2011. 5. FURTHER IN THE CASE OF CIT V. ASSOCIATED AGENCI ES, CHENNAI-600 034 REPORTED IN 295 ITR 496, THE HONBLE MADRAS HIGH CO URT HAS HELD THAT APPEALS CANNOT BE FILED IN VIOLATION OF THE CBDT CIRCULAR. THE HONBLE MADRAS HIGH COURT HAD ALSO REFERRED TO THE JUDGMENT OF HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF CIT VS. DIGVIJAY SINGH REPORTED IN (2007) 2 92 ITR 314, THE JUDGMENT OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. ZO EB Y. TOPIWALS (2006) 284 ITR 379 AND ALSO ANOTHER JUDGMENT OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO., (2002) 254 ITR 565 FOR TH E PROPOSITION THAT DIRECTIONS ISSUED BY THE BOARD ARE BINDING ON THE DEPARTMENT A ND APPEALS FILED WHERE THE TAX EFFECT IS LESS THAN THAT PROVIDED IN THE SAID I NSTRUCTION IS NOT MAINTAINABLE. I.T.A. NO.260/MDS/2011 3 6. HENCE, IN VIEW OF THE SAID CIRCULAR AND RESPECT FULLY FOLLOWING THE PRECEDENTS FROM HONBLE JURISDICTIONAL HIGH COURTS ABOVE, THE APPEAL IS DISMISSED IN LIMINE. 7. IN THE RESULT, THIS APPEAL BY THE REVENUE STANDS DISMISSED IN LIMINE. 8. THE ORDER WAS PRONOUNCED IN THE COURT ON 19/04/2 011. SD/- SD/- (ABRAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 19 TH APRIL, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE