DCIT CIR 17(1), MUMBAI V. PAX CHEM LTD, NAVI MUMBAI

ITA 2615/MUM/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79389 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 05-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRIKANT NAMDEO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND D. KARUNAKARA RAO, ACCOUNTANT MEMBER ./I.T.A. NO.261 5/M/2013 ( AY: 2008 - 2009) DCIT - CIR - 7(1), R.NO.622, AAYAKAR BHAVAN, M.K. ROAD, CHURCHGATE, MUMBAI - 400020. / VS. PAX CHEM LTD, A - 34 T.T.C INDL AREA, PAWANE, NAVI MUMBAI - 613. ./ PAN : AACCP0919J ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SHRIKANT NAMDEO / RESPONDENT BY : PANKAJ N. JHAMAR / DATE OF HEARING : 09.7.2014 / DATE OF PRONOUNCEMENT : 09 .7.2014 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 5.4.2013 IS AGAINST THE ORDER OF THE CIT (A) - 13, MUMBAI DATED 11.1.2013 FOR THE ASSESSMENT YEAR 2008 - 2009. 2. IN THIS APPEAL, REVENUE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: 1. THE LD CIT (A) HAS ERRED ON THE FACTS AND IN LAW IN DELETING THE AMOUNT OF RS. 7,91,762/ - BEING ADDITION MADE U/S 145A OF THE ACT, WITHOUT PROPERLY APPRECIATING THE FACTUAL AND LEGAL MATRIX AS CLEARLY BROUGHT OUT BY THE ASSESSING OFFICER. 2. THE LD CIT(A) HAS ERRED ON THE FACTS AND IN LAW IN DELETING THE AMOUNT OF RS. 7 ,91,762/ - BEING THE ADDITION MADE U/S 145A OF THE ACT, IGNORING THE FACT THAT THOUGH THE ASSESSEE HAD SHOWN CLOSING BALANCE OF MODVAT BUT HAD NOT ADDED THE SAME IN THE CLOSING STOCK AS REQUIRED UNDER SECTION 145A OF THE ACT. 3. AS PER THE INSTRUCTIONS ISS UED BY THE CBDT, MINIMUM MONETARY LIMIT IS FIXED FOR FILING THE APPEAL BEFORE THE TRIBUNAL. IN THE PRESENT CASE, QUANTUM OF PENALTY IS RS. 2,37,528/ - , WHICH IS BELOW RS. 3 LAKHS. THE C.B.D.T. HAS ISSUED INSTRUCTIONS TO ALL THE CHIEF COMMISSIONERS/COMMISS IONERS THAT WHERE THE TAX EFFECT IS LESS THAN RS. 3 LAKHS, THEN THE APPEAL SHOULD NOT BE FILED IN THE TRIBUNAL. MOREOVER, INSTRUCTIONS ISSUED BY THE CBDT PUTTING CEILING FOR APPROACHING THE TRIBUNAL HAS BEEN CONSIDERED 2 BY HONBLE HIGH COURT OF BOMBAY IN T HE CASE OF CIT VS. PITHWA ENGINEERING 276 ITR 519 AND HELD THAT INSTRUCTION IS APPLICABLE TO PENDING 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 APPLICABLE TO THE APPEALS PENDING 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 RE SULT, REVENUES APPEAL IS DISMISSED . ORDER PRONO UNCED IN THE OPEN COURT ON 9 TH JULY, 2014. SD/ - SD/ - ( VIJAY PAL RAO ) (D. KARUNAKARA RAO ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; 9 /7/2014 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI