DCIT 14(2), MUMBAI V. HITEN P. DALAL, MUMBAI

ITA 2881/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48645 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 07-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 12-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S SRIVASTAVA
• Keywords: Tax effect
• Section: 2

Judgement Text

1 ITA NO. 2881/MUM/2010 ASSTT. YEAR : 2006-07. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER. I.T.A. NO.2881/MUM/2010 ASSESSMEN T YEAR : 2006-07. DY. COMMISSIONER OF INCOME-TAX, HITEN P. DALAL, 14(2), MUMBAI. VS. 415, COTTON EXCHANGE BLDG., KALBADEVI ROAD,, MUMBAI 400020. PAN AABPD5221HJ APPELLANT RESPONDENT. APPELLANT BY : SHRI R.S. SRIVASTAVA. RESPONDENT BY : NONE. O R D E R PER J. SUDHAKAR REDDY, A.M. : THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED A GAINST THE ORDER OF THE CIT(APPEALS)-25, MUMBAI DATED 19-01-2010. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. THE LEA RNED DR AGREED THAT THE TAX EFFECT IN THIS CASE IS LESS THAN RS.3 LAKHS. THERE IS NO MENTION IN THE GROUNDS OF APPEAL, OF ANY EXCEPTIONAL CIRCUMSTANCES WARRANTING FILING OF THE APPEAL WHEN THE TAX EFFECT IS LESS THAN THE PRESCRIBED LIMITS BY WA Y OF BOARDS CIRCULAR. 3. THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. PITHWA ENGG. WORKS (2005) 276 ITR 519 (BOM) AT PAGE 520 HELD AS FOLLOW S: 2 ITA NO. 2881/MUM/2010 ASSTT. YEAR : 2006-07. THIS COURT CAN VERY WELL TAKE JUDICIAL NOTICE OF T HE FACT THAT BY PASSAGE OF TIME MONEY VALUE HAS GONE DOWN, THE COST OF LITIGAT ION EXPENSES HAS GONE UP, THE ASSESSEE ON THE FILE OF THE DEPARTMENTS HAV E BEEN INCREASED CONSEQUENTLY, THE BURDEN ON THE DEPARTMENT HAS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR CO URTS ARE CHOCKED WITH HUGE PENDENCY OF CASES. IN THIS VIEW OF THE MATTER , THE BOARD HAS RIGHTLY TAKEN A DECISION NOT TO FILE REFERENCES IF THE TAX EFFECT LESS THAN RS.2 LAKHS. THE SAME POLICY FOR OLD MATTERS NEED TO BE ADOPTED BY THE DEPARTMENT. IN OUR VIEW, THE BOARDS CIRCULAR DATED MARCH 27, 2000 IS VERY MUCH APPLICABLE EVEN TO THE OLD REFERENCES WHICH ARE STI LL UNDECIDED. THE DEPARTMENT IS NOT JUSTIFIED IN PROCEEDING WITH THE OLD REFERENCES WHEREIN THE TAX IMPACT IS MINIMAL. THUS, THERE IS NO JUSTIFICAT ION TO PROCEED WITH DECADES OLD REFERENCES HAVING NEGLIGIBLE TAX EFFECT. THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. M/S P.S. JAIN AND CO. IN ITR NO. 179 OF 1991, ORDER DATED 02-08-2010 HAS APPLIED THIS DECISION AND HELD THAT THE CIRCULAR WOULD ALSO APPLY TO ALL PENDING CASES. SIMILAR IS THE VIEW OF THE HONBLE DELHI HIGH COURT IN THE CASE CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008 DATED 03-03-2011. 4. RESPECTFULLY FOLLOWING THESE DECISIONS, WE DISMI SS THE APPEAL AS NOT MAINTAINABLE. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH APRIL, 2011. SD/- SD/- (VIJAY PAL RAO) (J. SU DHAKAR REDDY) JUDICIAL MEMBER. ACCOUNT ANT MEMBER MUMBAI, DATED: 27 TH APRIL 2011. 3 ITA NO. 2881/MUM/2010 ASSTT. YEAR : 2006-07. COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, H -BENCH (TRUE COPY) BY ORDER ASSTT. REGISTR AR, ITAT, MUMBAI. WAKODE DATE INITIALS DRAFT DICTATED ON 07- 04-2011 SR. P.S. DRAFT PLACED BEFORE THE AUTHOR 07-04-2011 SR. P.S. DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER 19.4.2011 AM/JM DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 19.4.201 1 AM/JM APPROVED DRAFT COMES TO THE SR. PS 19.4.2011 SR. P .S. KEPT FOR PRONOUNCEMENT ON 27.4.2011 SR. P.S. FILE SENT TO THE BENCH CLERK 28.4.2011 SR. P.S. DATE ON WHICH FILE GOES TO THE HEAD CLERK DATE OF DISPATCH