JCIT, New Delhi V. M/s Vashulinga Synthetic Ltd., New Delhi

ITA 2767/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65542 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 30-07-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 27-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: NEW DELHI BEFORE SHRI S.V.MEHROTRA, ACCOUNTANT MEMBER I.T.A .NO.2767/DEL/2011 (ASSESSMENT YEAR-2005-06) JCIT, VS VASHULINGA SYNTHETIC LTD., CIRCLE-17(1), 1004, CHIRANJIV TOWER, NEW DELHI. 43, NEHRU PLACE, NEW DELHI-19. PAN-AABCV5623Q ( APPELLANT) (RESPO NDENT) APPELLANT BY: SH. SATPAL SINGH, SR. DR RESPONDENT BY: SH.K.SAMPATH, ADV. ORDER THIS APPEAL FILED ON 30-05-2011 BY THE REVENUE IS A GAINST THE ORDER DATED 04-03-2011 OF THE LD. CIT(A)-XIX, NEW DELHI F OR AY 2005-06. 2. THE ASSESSEE, A DOMESTIC COMPANY, FILED ITS RETU RN OF INCOME DECLARING A TOTAL INCOME AT RS.15,74,350/-. THE ASSESSING OF FICER DETERMINED THE INCOME RETURNED UNDER THE HEAD BUSINESS AS DEEMED S PECULATIVE LOSS AT RS.18,38,480/-. 3. LD. CIT(A) WHILE PARTLY ALLOWING THE ASSESSEES APPEAL, REVERSED THE FINDINGS OF ASSESSING OFFICER ON THIS COUNT AND TRE ATED THE LOSS AS ARISING FROM BUSINESS. BEING AGGRIEVED, THE DEPARTMENT IS IN APPEAL BEFORE US. AT THE TIME OF HEARING, LD. COUNSEL SUBMITTED THAT THE INCOME ASSESSED WAS RS.2,89,130/- AND THE TAX DEMAND WAS RS 1,17,629/-. THEREFORE, TAX EFFECT IS I.T.A .NO.2767/DEL/2011 2 LESS THAN RS. 3 LACS. HE, THEREFORE, SUBMITTED THA T DEPARTMENT SHOULD NOT HAVE PREFERRED THE APPEAL BEFORE TRIBUNAL. 4. I HAVE CONSIDERED BOTH THE PARTIES AND HAVE PERU SED MATERIAL ON RECORDS OF THE CASE. THE DEPARTMENT HAD FILED THIS APPEAL ON 30.05.2011. ADMITTEDLY, TAX DEMAND IS LESS THAN RS. 3.00 LACS. IN VIEW OF INSTRUCTION NO. 3/2011 DATED 09.02.2011, THE REVENUE IS NOT PERMITTED TO FILE APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THA N RS.3.00 LACS. 5. THEREFORE, THE DEPARTMENTS APPEAL DESERVES TO B E DISMISSED AS DEPARTMENT HAS NOT POINTED OUT THAT THE APPEAL FILE D BY IT FALLS IN ANY OF THE EXCEPTIONAL CLAUSES GIVEN IN THE AFORESAID INSTRUCT ION. 6. IN THE RESULT, THE DEPARTMENTS APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 28.09.2012. SD/- (S.V.MEHROTRA) ACCOUNTANT MEMBER DATED:28/09/2012 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI